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Path: Consulting Services arrow Report & Digest arrow GCA Report Articles arrow GCA Report 2003 arrow PPA Interest Required On Interim Payments of Cost Type Service Work

PPA Interest Required On Interim Payments of Cost Type Service Work

Effective December 30, 2002 the Office of Management and Budget issued a final rule requiring agencies to pay a Prompt Payment Act interest penalty whenever they make an interim payment under a cost reimbursement contract for services more than 30 days after receiving a proper invoice for payment.  The new requirement applies to all invoices due on or after December 15, 2000 under any cost reimbursement service contract regardless of when it was awarded (Fed. Reg. 79515).


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