Overview
This section defines the regulatory foundation for FAR Subpart 32.9, establishing that it implements the Office of Management and Budget (OMB) prompt payment regulations found at 5 CFR Part 1315.
Key Rules
- Regulatory Implementation: Directs the implementation of federal prompt payment policies and procedures within government contracts.
- Authority Source: Links the FAR requirements directly to the overarching OMB regulations in 5 CFR Part 1315.
- Scope of Application: Covers the prescription of specific contract clauses that mandate how and when the government must pay its contractors.
Practical Implications
- Timely Payments: Contractors are legally entitled to payment within specific timeframes (generally 30 days) for invoices that are properly submitted and accepted.
- Interest Penalties: If the government fails to meet these timelines, this subpart provides the mechanism for contractors to automatically receive interest penalties without having to formally request them.