[Federal Register Volume 85, Number 133 (Friday, July 10, 2020)]
[Notices]
[Pages 41671-41672]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14763]
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DEPARTMENT OF THE TREASURY
Bureau of Fiscal Service
Prompt Payment Interest Rate; Contract Disputes Act
AGENCY: Bureau of the Fiscal Service, Treasury.
ACTION: Notice of prompt payment interest rate; Contract Disputes Act.
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SUMMARY: For the period beginning July 1, 2020, and ending on December
31, 2020, the prompt payment interest rate is 1\1/8\ per centum per
annum.
DATES: The the prompt payment interest rate is applicable July 1, 2020,
to December 31, 2020.
ADDRESSES: Comments or inquiries may be mailed to: E-Commerce Division,
Bureau of the Fiscal Service, 401 14th Street SW, Room 306F,
Washington, DC
[[Page 41672]]
20227. Comments or inquiries may also be emailed to
[email protected].
FOR FURTHER INFORMATION CONTACT: Thomas M. Burnum, E-Commerce Division,
(202) 874-6430; or Thomas Kearns, Senior Counsel, Office of the Chief
Counsel, (202) 874-7036.
SUPPLEMENTARY INFORMATION: An agency that has acquired property or
service from a business concern and has failed to pay for the complete
delivery of property or service by the required payment date shall pay
the business concern an interest penalty. 31 U.S.C. 3902(a). The
Contract Disputes Act of 1978, Sec. 12, Public Law 95-563, 92 Stat.
2389, and the Prompt Payment Act, 31 U.S.C. 3902(a), provide for the
calculation of interest due on claims at the rate established by the
Secretary of the Treasury.
The Secretary of the Treasury has the authority to specify the rate
by which the interest shall be computed for interest payments under
section 12 of the Contract Disputes Act of 1978 and under the Prompt
Payment Act. Under the Prompt Payment Act, if an interest penalty is
owed to a business concern, the penalty shall be paid regardless of
whether the business concern requested payment of such penalty. 31
U.S.C. 3902(c)(1). Agencies must pay the interest penalty calculated
with the interest rate, which is in effect at the time the agency
accrues the obligation to pay a late payment interest penalty. 31
U.S.C. 3902(a). ``The interest penalty shall be paid for the period
beginning on the day after the required payment date and ending on the
date on which payment is made.'' 31 U.S.C. 3902(b).
Therefore, notice is given that the Secretary of the Treasury has
determined that the rate of interest applicable for the period
beginning July 1, 2020, and ending on December 31, 2020, is 1\1/8\ per
centum per annum.
Timothy E. Gribben,
Commissioner, Bureau of the Fiscal Service.
[FR Doc. 2020-14763 Filed 7-9-20; 8:45 am]
BILLING CODE 4810-AS-P