Prompt Payment Act Amendments of 1987

(Reported to House from the Committee on Government Operations with amendment, H. Rept. 100-784) Prompt Payment Act Amendments of 1988 - Revises Federal law to provide that for purposes of determining a payment due date and the date upon which any late payment interest penalty shall begin to accrue, the head of a Federal agency is deemed to have received an invoice on the later of: (1) the date on which the designated place or person of an agency actually receives it; or (2) the seventh day after the date on which a property is actually delivered, or final performance of a service is actually completed, unless the contract specifies otherwise or the agency has accepted such property or services before such seventh day. Provides that the agency is deemed to receive an invoice on the date of the invoice, if the agency has failed to annotate the invoice with the date of receipt at the time of receipt. Declares that a payment is deemed to be made on the date a check for payment is dated or an electronic fund transfer is made. Makes Federal prompt payment provisions applicable to the United States Postal Service. Makes the Postmaster General responsible for issuing procurement regulations, solicitation provisions, and contract clauses. Declares that the interest rate to be used in computing a late payment interest penalty is the rate in effect on the date the interest begins to accrue. Eliminates grace periods for payment of interest penalties. Requires an agency to pay an additional interest penalty if: (1) the agency owes the interest penalty; (2) the interest penalty is not paid to the business concern on or after the date the penalty is due; (3) the agency does not pay the penalty within ten days after such payment is made; and (4) a written demand is made within 40 days after such payment is made. Provides for interest payments on certain agricultural loan and price support payments if their prompt payment is not made. Requires regulations on interest penalties, in the case of dairy products, fats, oils, or food products prepared from edible fats or oils, to provide a required payment date of not later than ten days after the date on which a proper invoice for the amount due has been received by the agency acquiring such products. Requires regulations on interest penalties to provide for periodic payments in the case of property or service contracts upon: (1) the submission of an invoice for supplies delivered or services performed; and (2) acceptance of supplies or services by an authorized employee or a determination by such employee that the performance conforms to the contract. Requires regulations on interest penalties, in the case of construction contracts, to provide for the payment of interest on: (1) progress payments due for more than 14 days, or a longer period if required to afford the Government an opportunity to inspect the work and adequacy of the contractor's performance; and (2) amounts retained during the performance of a contract, if such amounts are not paid by the required payment date. Sets forth substantiation and certification requirements for a construction contractor when making a progress payment request. Establishes the method of computing interest penalties chargeable against a construction contractor when the contractor is in possession of unearned amounts or withheld progress payments. Requires regulations on interest penalties to: (1) require that defective invoices be returned to the vendor not later than seven days after their receipt, and that agencies not be charged for the excess time in reviewing a defective invoice; (2) permit agencies to make payments prior to the required payment date; and (3) prescribe methods for computing certain interest penalties. Provides that for the purpose of determining interest penalties on discount payments, the time shall be determined from the date of the invoice. Requires a prime contractor under a construction contract to notify an agency of any deficiencies in its performance under a construction contract discovered after a request for payment has been made and to pay interest on the unearned funds until the deficiency is corrected or the unearned funds returned to the agency. Requires the prime contractor to include a payment clause in its subcontracts specifying that a late payment interest penalty would be paid if the prime contractor paid the subcontractor later than seven days after receiving payment from the agency under the contract. Requires all subcontracts under a construction contract awarded by an agency to include a payment clause and interest penalty clause. Recognizes the right of subcontractors to negotiate provisions governing withholding and retainage. Establishes procedures for a prime contractor in the event a deficiency in subcontractor performance is discovered after the prime contractor has issued a certified payment request to the agency. Prescribes information to be included in a written notice concerning any withholding. Requires the prime contractor, after payment to a subcontractor has been withheld, to certify to the agency that the subcontractor is entitled to such amount. Declares that the United States shall not be a party to any dispute between the prime contractor and the subcontractor relating to such payments or a late payment interest penalty under a subcontract clause. Declares that the United States may not be interpleaded in any judicial or administrative proceeding involving such a dispute. Declares that a prime contractor's obligation to pay an interest penalty to a subcontractor may not be construed to be an obligation of the United States. Revises agency reporting requirements on interest penalty payments to include a description of agency payment practices. Requires the modification of the Federal acquisition regulation to implement Federal prompt payment provisions. Amends the Small Business Act to require the Office of Small and Disadvantaged Business Utilization to assist small business concerns to obtain payments, late payment interest penalties, or information due to such concerns in conformity with this Act. Amends the Supplemental Appropriations Act, 1984 to codify the definition of meat and meat food products.

(Measure passed House, amended, roll call #238 (394-0)) Prompt Payment Act Amendments of 1988 - Revises Federal law to provide that for purposes of determining a payment due date and the date upon which any late payment interest penalty shall begin to accrue, the head of a Federal agency is deemed to have received an invoice on the later of: (1) the date on which the designated place or person of an agency actually receives it; or (2) the seventh day after the date on which a property is actually delivered, or final performance of a service is actually completed, unless the contract specifies otherwise or the agency has accepted such property or services before such seventh day. Provides that the agency is deemed to receive an invoice on the date of the invoice, if the agency has failed to annotate the invoice with the date of receipt at the time of receipt. Declares that a payment is deemed to be made on the date a check for payment is dated or an electronic fund transfer is made. Makes Federal prompt payment provisions applicable to the United States Postal Service. Makes the Postmaster General responsible for issuing procurement regulations, solicitation provisions, and contract clauses. Declares that the interest rate to be used in computing a late payment interest penalty is the rate in effect on the date the interest begins to accrue. Eliminates grace periods for payment of interest penalties. Requires an agency to pay an additional interest penalty if: (1) the agency owes the interest penalty; (2) the interest penalty is not paid to the business concern on or after the date the penalty is due; (3) the agency does not pay the penalty within ten days after such payment is made; and (4) a written demand is made within 40 days after such payment is made. Provides for interest payments on certain agricultural loan and price support payments if their prompt payment is not made. Requires regulations on interest penalties, in the case of dairy products, fats, oils, or food products prepared from edible fats or oils, to provide a required payment date of not later than ten days after the date on which a proper invoice for the amount due has been received by the agency acquiring such products. Requires regulations on interest penalties to provide for periodic payments in the case of property or service contracts upon: (1) the submission of an invoice for supplies delivered or services performed; and (2) acceptance of supplies or services by an authorized employee or a determination by such employee that the performance conforms to the contract. Requires regulations on interest penalties, in the case of construction contracts, to provide for the payment of interest on: (1) progress payments due for more than 14 days, or a longer period if required to afford the Government an opportunity to inspect the work and adequacy of the contractor's performance; and (2) amounts retained during the performance of a contract, if such amounts are not paid by the required payment date. Sets forth substantiation and certification requirements for a construction contractor when making a progress payment request. Establishes the method of computing interest penalties chargeable against a construction contractor when the contractor is in possession of unearned amounts or withheld progress payments. Requires regulations on interest penalties to: (1) require that defective invoices be returned to the vendor not later than seven days after their receipt, and that agencies not be charged for the excess time in reviewing a defective invoice; (2) permit agencies to make payments prior to the required payment date; and (3) prescribe methods for computing certain interest penalties. Provides that for the purpose of determining interest penalties on discount payments, the time shall be determined from the date of the invoice. Requires a prime contractor under a construction contract to notify an agency of any deficiencies in its performance under a construction contract discovered after a request for payment has been made and to pay interest on the unearned funds until the deficiency is corrected or the unearned funds returned to the agency. Requires the prime contractor to include a payment clause in its subcontracts specifying that a late payment interest penalty would be paid if the prime contractor paid the subcontractor later than seven days after receiving payment from the agency under the contract. Requires all subcontracts under a construction contract awarded by an agency to include a payment clause and interest penalty clause. Recognizes the right of subcontractors to negotiate provisions governing withholding and retainage. Establishes procedures for a prime contractor in the event a deficiency in subcontractor performance is discovered after the prime contractor has issued a certified payment request to the agency. Prescribes information to be included in a written notice concerning any withholding. Requires the prime contractor, after payment to a subcontractor has been withheld, to certify to the agency that the subcontractor is entitled to such amount. Declares that the United States shall not be a party to any dispute between the prime contractor and the subcontractor relating to such payments or a late payment interest penalty under a subcontract clause. Declares that the United States may not be interpleaded in any judicial or administrative proceeding involving such a dispute. Declares that a prime contractor's obligation to pay an interest penalty to a subcontractor may not be construed to be an obligation of the United States. Revises agency reporting requirements on interest penalty payments to include a description of agency payment practices. Requires the modification of the Federal acquisition regulation to implement Federal prompt payment provisions. Amends the Small Business Act to require the Office of Small and Disadvantaged Business Utilization to assist small business concerns to obtain payments, late payment interest penalties, or information due to such concerns in conformity with this Act. Amends the Supplemental Appropriations Act, 1984 to codify the definition of meat and meat food products.

(Measure passed Senate, amended, roll call #318 (86-0)) Prompt Payment Act Amendments of 1987 - Revises Federal law to deem the head of a Federal agency to have received an invoice on the later of: (1) the date on which the designated place or person of an agency actually receives it; or (2) the fifth day after the date on which a property is actually delivered, or final performance of a service is actually completed, unless the contract specifies otherwise or the agency has accepted such property or services before such fifth day. Makes Federal prompt payment provisions applicable to the United States Postal Service. Makes the Postmaster General responsible for issuing procurement regulations, solicitation provisions, and contract clauses. Reduces the 15-day grace period for payment of interest penalties to seven days for solicitations other than meat products and agricultural commodities. Eliminates such grace period for all procurement solicitations issued on or after October 1, 1989. Requires an agency to pay a double interest penalty if: (1) the agency owes the interest penalty; (2) the interest penalty is not paid to the business concern on or after the date the penalty is due; (3) the agency does not pay the penalty within ten days after such payment is made; and (4) a written demand is made within 40 days after such payment is made. Provides for interest payments on certain agricultural loan and price support payments if their prompt payment is not made. Requires regulations on interest penalties, in the case of construction contracts, to provide for the payment of interest on: (1) progress payments due for more than seven days, or a longer period if the prevailing practice in private construction contracts is to provide such longer period; and (2) amounts retained during the performance of a contract, if such amounts are not paid by the required payment date. Requires regulations on interest penalties, in the case of dairy products, fats, oils, or food products prepared from edible fats or oils, to provide a required payment date of not later than ten days after the date on which a proper invoice for the amount due has been received by the agency acquiring such products. Requires regulations on interest penalties to provide for periodic payments in the case of supply or service contracts upon: (1) the submission of an invoice for supplies delivered or services performed; and (2) acceptance of supplies or services by an authorized employee or certification of performance by such an employee. Requires Government construction contractors to include a payment provision in their agreements with their subcontractors which provides for payment in accordance with prevailing industry standards. Requires the contractor to pay a late payment interest penalty to the subcontractor as agreed upon in solicitations for subcontractor bids. Authorizes a prime contractor to negotiate and include in the subcontract a provision which permits the prime contractor to make a determination, before making application to the agency for a payment for work performed by a subcontractor, that: (1) all or part of the subcontractor's request for payment may be withheld for good cause; and (2) a specified percentage of any progress payment otherwise due to the subcontractor may be retained for the protection of the prime contractor and be paid to the subcontractor within seven days after such amount is released to the prime contractor by the Government. Requires the prime contractor to certify to the agency that the subcontractor is entitled to the payment which has been retained or withheld. Declares that the United States shall not be a party to any dispute between the prime contractor and the subcontractor relating to such payments or a late payment interest penalty under a subcontract clause. Declares that the United States may not be interpleaded in any judicial or administrative proceeding involving such a dispute. Declares that a prime contractor's obligation to pay an interest penalty to a subcontractor may not be construed to be an obligation of the United States. Specifies the calculation of time for interest penalties on discount payments. Revises agency reporting requirements on interest penalty payments to include a description of agency payment practices. Requires the modification of the Federal acquisition regulation to implement Federal prompt payment provisions. Amends the Supplemental Appropriations Act, 1984 to codify the definition of meat and meat food products. Establishes a Presidential Advisory Panel for Coordination of Government Debt Collection and Delinquency Prevention Activities to: (1) review and evaluate Federal policies on debt collection and delinquency prevention; (2) recommend uniform policies, procedures, and guidelines for the collection of debts owed to the United States; (3) develop the priority and manner of delinquent debt collections and procedures for the prevention of delinquencies; (4) establish training manuals to increase the effectiveness of employees involved in collection activities; and (5) undertake additional related tasks and make interim reports of its activities and recommendations as the President or the Congress may determine necessary. Requires the Panel to make a final report to the President and the Congress not later than 18 months from the date of the Panel's first meeting. Terminates the Panel within 30 days following the submission of such report. Authorizes appropriations to the Panel.

(Reported to Senate from the Committee on Governmental Affairs with amendment (without written report)) Prompt Payment Act Amendments of 1987 - Revises Federal law to deem the head of a Federal agency to have received an invoice on the later of: (1) the date on which the designated place or person of an agency actually receives it; or (2) the fifth day after the date on which a property is actually delivered, or final performance of a service is actually completed, unless the contract specifies otherwise or the agency has accepted such property or services before such fifth day. Makes Federal prompt payment provisions applicable to the United States Postal Service. Makes the Postmaster General responsible for issuing procurement regulations, solicitation provisions, and contract clauses. Reduces the 15-day grace period for payment of interest penalties to seven days for solicitations other than meat products and agricultural commodities. Eliminates such grace period for all procurement solicitations issued on or after October 1, 1989. Requires an agency to pay a double interest penalty if: (1) the agency owes the interest penalty; (2) the interest penalty is not paid to the business concern on or after the date the penalty is due; (3) the agency does not pay the penalty within ten days after such payment is made; and (4) a written demand is made within 40 days after such payment is made. Requires regulations on interest penalties, in the case of construction contracts, to provide for the payment of interest on: (1) progress payments due for more than seven days, or a longer period if the prevailing practice in private construction contracts is to provide such longer period; and (2) amounts retained during the performance of a contract, if such amounts are not paid by the required payment date. Requires regulations on interest penalties to provide for periodic payments in the case of supply or service contracts upon: (1) the submission of an invoice for supplies delivered or services performed; and (2) acceptance of supplies or services by an authorized employee or certification of performance by such an employee. Requires Government construction contractors to include a payment provision in their agreements with their subcontractors which provides for payment in accordance with prevailing industry standards. Requires the contractor to pay a late payment interest penalty to the subcontractor at the rate applicable between the prime contractor and the Government. Authorizes a prime contractor to negotiate and include in the subcontract a provision which permits the prime contractor to make a determination, before making application to the agency for a payment for work performed by a subcontractor, that: (1) all or part of the subcontractor's request for payment may be withheld for good cause; and (2) a specified percentage of any progress payment otherwise due to the subcontractor may be retained for the protection of the prime contractor and be paid to the subcontractor within seven days after such amount is released to the prime contractor by the Government. Requires the prime contractor to certify to the agency that the subcontractor is entitled to the payment which has been retained or withheld. Declares that the United States shall not be a party to any dispute between the prime contractor and the subcontractor relating to such payments or a late payment interest penalty under a subcontract clause. Declares that the United States may not be interpleaded in any judicial or administrative proceeding involving such a dispute. Declares that a prime contractor's obligation to pay an interest penalty to a subcontractor may not be construed to be an obligation of the United States. Specifies the calculation of time for interest penalties on discount payments. Revises agency reporting requirements on interest penalty payments to include a description of agency payment practices. Requires the modification of the Federal acquisition regulation to implement Federal prompt payment provisions.

Prompt Payment Act Amendments of 1987 - Revises Federal law to deem the head of a Federal agency to have received an invoice on the later of: (1) the date on which the designated office or employee of an agency actually receives it; or (2) the fifth day after the date on which a property is actually delivered, or final performance of a service is actually completed, unless the contract specifies otherwise. Makes Federal prompt payment provisions applicable to the United States Postal Service. Makes the Postmaster General responsible for issuing procurement regulations, solicitation provisions, and contract clauses. Reduces the 15-day grace period for payment of interest penalties to eight days for solicitations (other than meat products and agricultural commodities) issued before October 1, 1990. Eliminates such grace period for procurement solicitations issued on or after October 1, 1990. Requires an agency to pay a double interest penalty if: (1) the agency owes the interest penalty; (2) the interest penalty is not paid to the business concern on or after the date the penalty is due; (3) the agency does not pay the penalty within ten days after such payment is made; and (4) a written demand is made within 40 days after such payment is made. Requires regulations on interest penalties, in the case of construction contracts, to provide for the payment of interest on: (1) progress payments due for more than seven days, or a longer period if the prevailing practice in private construction contracts is to provide such longer period; and (2) amounts retained during the performance of a contract, if such amounts are not paid by the required payment date. Requires regulations on interest penalties to provide for periodic payments in the case of supply or service contracts upon: (1) the submission of an invoice for supplies delivered or services performed; and (2) acceptance of supplies or services by an authorized employee or certification of performance by such an employee. Requires Government construction contractors to include a payment provision in their agreements with their subcontractors which provides for payment in accordance with prevailing industry standards. Requires the contractor to pay a late payment interest penalty to the subcontractor at the rate applicable between the prime contractor and the Government. Declares that a prime contractor's obligation to pay an interest penalty to a subcontractor may not be construed to be an obligation of the United States. Specifies the calculation of time for interest penalties on discount payments. Revises agency reporting requirements on interest penalty payments to include a description of agency payment practices. Requires the modification of the Federal acquisition regulation to implement Federal prompt payment provisions.