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<!DOCTYPE dita
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<dita xmlns:ditaarch="http://dita.oasis-open.org/architecture/2005/"
      ditaarch:DITAArchVersion="1.2">
   <concept class="- topic/topic concept/concept "
            ditaarch:DITAArchVersion="1.2"
            id="GSAM_552_232_25">
      <title class="- topic/title " xtrc="GSAR">
         <ph class="- topic/ph " props="autonumber">552.232-25</ph> Prompt Payment.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p audience="GSAR" class="- topic/p " id="HpGIPZ">As prescribed in <ph outputclass="ClauseProvisionXREF" class="- topic/ph "> 
               <xref class="- topic/xref "
                     href="532.908.dita#GSAM_532_908"
                     outputclass="fm:ParaNumOnly">532.908</xref> 
            </ph>(b)(2),
insert the following clause:</p>
         <p audience="GSAR"
            class="- topic/p "
            id="wMcFzB"
            outputclass="Ctr_SmCaps"> Prompt Payment (JAN 2022)
(Deviation FAR 52.232-25) </p>
         <p audience="GSAR" class="- topic/p " id="xIInHt">Notwithstanding any other payment
clause in this contract, the Government will make invoice payments
and contract financing payments under the terms and conditions specified
in this clause. Payment shall be considered as being made on the
day a check is dated or the date of an electronic funds transfer.
Definitions of pertinent terms are set forth in section 32.902 of
the Federal Acquisition Regulation. All days referred to in this
clause are calendar days, unless otherwise specified. (However,
see paragraph <xref class="- topic/xref "
                  href="#GSAM_552_232_25"
                  outputclass="fm:(alpha)(number)"/> of this clause
concerning payments due on Saturdays, Sundays, and legal holidays.)</p>
         <ol class="- topic/ol " id="d838e26">
            <li audience="GSAR" class="- topic/li " id="dfCPLf" props="Runin">
               <p audience="GSAR" class="- topic/p " id="d830e32">
                  <ph class="- topic/ph " props="autonumber">(a)</ph>
                  <i class="+ topic/ph hi-d/i ">Invoice
payments.</i>
               </p>
               <ol class="- topic/ol " id="d838e39">
                  <li audience="GSAR" class="- topic/li " id="dnOyAu">
                     <p audience="GSAR" class="- topic/p " id="d830e45">
                        <ph class="- topic/ph " props="autonumber">(1)</ph>The due date for making invoice
payments by the designated payment office is:</p>
                     <ol class="- topic/ol " id="d838e49">
                        <li audience="GSAR" class="- topic/li " id="mFKOJD">
                           <p audience="GSAR" class="- topic/p " id="d830e55">
                              <ph class="- topic/ph " props="autonumber">(i)</ph>For orders placed electronically
by the General Services Administration (GSA) Federal Acquisition
Service (FAS), and to be paid by GSA through electronic funds transfer
(EFT), the later of the following two events:</p>
                           <ol class="- topic/ol " id="d838e59">
                              <li audience="GSAR" class="- topic/li " id="vjfrkH">
                                 <p audience="GSAR" class="- topic/p " id="d830e65">
                                    <ph class="- topic/ph " props="autonumber">(A)</ph>The 10th day after the designated
billing office receives a proper invoice from the Contractor. If
the designated billing office fails to annotate the invoice with
the date of receipt at the time of receipt, the invoice payment due
date shall be the 10th day after the date of the Contractor's invoice;
provided the Contractor submitted a proper invoice and no disagreement
exists over quantity, quality, or Contractor compliance with contract requirements.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="JSzCpV">
                                 <p audience="GSAR" class="- topic/p " id="d830e80">
                                    <ph class="- topic/ph " props="autonumber">(B)</ph>The 10th day after Government acceptance
of supplies delivered or services performed by the Contractor.</p>
                              </li>
                           </ol>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="wbnDfC">
                           <p audience="GSAR" class="- topic/p " id="d830e94">
                              <ph class="- topic/ph " props="autonumber">(ii)</ph>For all other orders, the later
of the following two events:</p>
                           <ol class="- topic/ol " id="d838e98">
                              <li audience="GSAR" class="- topic/li " id="aBqVAo">
                                 <p audience="GSAR" class="- topic/p " id="d830e104">
                                    <ph class="- topic/ph " props="autonumber">(A)</ph>The 30th day after the designated
billing office receives a proper invoice from the Contractor. If
the designated billing office fails to annotate the invoice with
the date of receipt at the time of receipt, the invoice payment due
date shall be the 30th day after the date of the Contractor's invoice;
provided the Contractor submitted a proper invoice and no disagreement
exists over quantity, quality, or Contractor compliance with contract requirements.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="XTqVEl">
                                 <p audience="GSAR" class="- topic/p " id="d830e119">
                                    <ph class="- topic/ph " props="autonumber">(B)</ph>The 30th day after Government acceptance
of supplies delivered or services performed by the Contractor.</p>
                              </li>
                           </ol>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="GDpTRo">
                           <p audience="GSAR" class="- topic/p " id="d830e133">
                              <ph class="- topic/ph " props="autonumber">(iii)</ph>On a final invoice, if the payment
amount is subject to contract settlement actions, acceptance occurs
on the effective date of the contract settlement.</p>
                        </li>
                     </ol>
                  </li>
                  <li audience="GSAR" class="- topic/li " id="rDryEe">
                     <p audience="GSAR" class="- topic/p " id="d830e144">
                        <ph class="- topic/ph " props="autonumber">(2)</ph>The General Services Administration
will issue payment on the due date in paragraph (a)(1)(i) of this
clause if the Contractor complies with full cycle electronic commerce.
Full cycle electronic commerce includes all the following elements:</p>
                     <ol class="- topic/ol " id="d838e148">
                        <li audience="GSAR" class="- topic/li " id="hocjuj">
                           <p audience="GSAR" class="- topic/p " id="d830e154">
                              <ph class="- topic/ph " props="autonumber">(i)</ph>The
Contractor must receive and fulfill electronic data interchange
(EDI) purchase orders (transaction set 850).</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="HVLrpY">
                           <p audience="GSAR" class="- topic/p " id="d830e163">
                              <ph class="- topic/ph " props="autonumber">(ii)</ph>The Contractor must generate and
submit to the Government valid EDI invoices (transaction set 810)
or submit invoices through the GSA Finance Center Internet-based
invoice process. Internet-based invoices must be submitted using
procedures provided by GSA.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="CfVHNX">
                           <p audience="GSAR" class="- topic/p " id="d830e172">
                              <ph class="- topic/ph " props="autonumber">(iii)</ph>The Contractor’s financial institution
must receive and process, on behalf of the Contractor, EFT payments through
the Automated Clearing House (ACH) system.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="sBSHPu">
                           <p audience="GSAR" class="- topic/p " id="d830e181">
                              <ph class="- topic/ph " props="autonumber">(iv)</ph>The EDI transaction sets in paragraphs
(a)(2)(i) through (a)(2)(iii) of this clause must adhere to implementation conventions
provided by GSA.</p>
                        </li>
                     </ol>
                  </li>
                  <li audience="GSAR" class="- topic/li " id="jMiKhv">
                     <p audience="GSAR" class="- topic/p " id="d830e192">
                        <ph class="- topic/ph " props="autonumber">(3)</ph>If any of the conditions in paragraph
(a)(2) of this clause do not occur, the 10 day payment due dates
in (a)(1) become 30 day payment due dates.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li " id="i1873569" props="Runin">
                     <p audience="GSAR" class="- topic/p " id="d830e201">
                        <ph class="- topic/ph " props="autonumber">(4)</ph>
                        <i class="+ topic/ph hi-d/i ">Certain
food products and other payments</i>.</p>
                     <ol class="- topic/ol " id="d838e208">
                        <li audience="GSAR" class="- topic/li " id="pCXuGN">
                           <p audience="GSAR" class="- topic/p " id="d830e214">
                              <ph class="- topic/ph " props="autonumber">(i)</ph>Due dates on Contractor invoices
for meat, meat food products, or fish; perishable agricultural commodities;
and dairy products, edible fats or oils, and food products prepared from
edible fats or oils are—</p>
                           <ol class="- topic/ol " id="d838e218">
                              <li audience="GSAR" class="- topic/li " id="eSKzUF">
                                 <p audience="GSAR" class="- topic/p " id="d830e224">
                                    <ph class="- topic/ph " props="autonumber">(A)</ph>For meat or meat food products,
as defined in section 2(a)(3) of the Packers and Stockyard Act of
1921 (<xref class="- topic/xref "
                                          format="html"
                                          href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                                          scope="external">7 U.S.C. 182(3)</xref>),
and as further defined in Pub. L. 98-181, including any edible fresh
or frozen poultry meat, any perishable poultry meat food product,
fresh eggs, and any perishable egg product, as close as possible
to, but not later than, the 7thday after product delivery.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="FQmxvZ">
                                 <p audience="GSAR" class="- topic/p " id="d830e241">
                                    <ph class="- topic/ph " props="autonumber">(B)</ph>For fresh or frozen fish, as defined
in section 204(3) of the Fish and Seafood Promotion Act of1986 (<xref class="- topic/xref "
                                          format="html"
                                          href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                                          scope="external">16 U.S.C. 4003(3)</xref>),
as close as possible to, but not later than, the 7thday after product
delivery.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="welrnh">
                                 <p audience="GSAR" class="- topic/p " id="d830e258">
                                    <ph class="- topic/ph " props="autonumber">(C)</ph>For perishable agricultural commodities,
as defined in section 1(4) of the Perishable Agricultural Commodities
Act of 1930 (<xref class="- topic/xref "
                                          format="html"
                                          href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                                          scope="external">7 U.S.C. 499a(4)</xref>),
as close as possible to, but not later than, the 10th day after
product delivery, unless another date is specified in the contract.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="zFUwuO">
                                 <p audience="GSAR" class="- topic/p " id="d830e275">
                                    <ph class="- topic/ph " props="autonumber">(D)</ph>For dairy products, as defined
in section 111(e) of the Dairy Production Stabilization Act of1983
(<xref class="- topic/xref "
                                          format="html"
                                          href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                                          scope="external">7 U.S.C. 4502(e)</xref>),
edible fats or oils, and food products prepared from edible fats
or oils, as close as possible to, but not later than, the 10th day
after the date on which a proper invoice has been received. Liquid
milk, cheese, certain processed cheese products, butter, yogurt,
ice cream, mayonnaise, salad dressings, and other similar products, fall
within this classification. Nothing in the Act limits this classification
to refrigerated products. When questions arise regarding the proper
classification of a specific product, prevailing industry practices
will be followed in specifying a contract payment due date. The
burden of proof that a classification of a specific product is,
in fact, prevailing industry practice is upon the Contractor making
the representation.</p>
                              </li>
                           </ol>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="TkYmOn">
                           <p audience="GSAR" class="- topic/p " id="d830e294">
                              <ph class="- topic/ph " props="autonumber">(ii)</ph>If the contract does not require
submission of an invoice for payment (<i class="+ topic/ph hi-d/i ">e.g.</i>,periodic lease
payments), the due date will be as specified in the contract.</p>
                        </li>
                     </ol>
                  </li>
                  <li audience="GSAR" class="- topic/li " id="i1873577">
                     <p audience="GSAR" class="- topic/p " id="d830e308">
                        <ph class="- topic/ph " props="autonumber">(5)</ph>
                        <i class="+ topic/ph hi-d/i ">Contractor’s
invoice</i>. The Contractor shall prepare and submit invoices to
the designated billing office specified in the contract. Notwithstanding
paragraph (g) of the clause at FAR 52.212-4, Contract Terms and
Conditions—Commercial Products
and Commercial Services, if the Contractor submits hard-copy
invoices, submit only an original invoice. No copies of the invoice
are required. A proper invoice must include the items listed in
paragraphs (a)(5)(i) through (a)(5)(viii) of this clause. If the
invoice does not comply with these requirements, it shall be returned
within 7 days after the date the designated billing office received
the invoice (3 days for meat, meat food products, or fish; 5days for
perishable agricultural commodities, edible fats or oils, and food
products prepared from edible fats or oils), with a statement of
the reasons why it is not a proper invoice. Untimely notification
will be taken into account in computing any interest penalty owed
the Contractor in the manner described in paragraph (a)(5) of this
clause.</p>
                     <ol class="- topic/ol " id="d838e315">
                        <li audience="GSAR" class="- topic/li " id="LrTiUh">
                           <p audience="GSAR" class="- topic/p " id="d830e321">
                              <ph class="- topic/ph " props="autonumber">(i)</ph>Name
and address of the Contractor.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="xcLJPq">
                           <p audience="GSAR" class="- topic/p " id="d830e330">
                              <ph class="- topic/ph " props="autonumber">(ii)</ph>Invoice date. (The Contractor
is encouraged to date invoices as close as possible to the date
of the mailing or transmission.)</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="fmgFNO">
                           <p audience="GSAR" class="- topic/p " id="d830e339">
                              <ph class="- topic/ph " props="autonumber">(iii)</ph>Contract number or other authorization
for supplies delivered or services performed (including order number and
contract line item number).</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="aiAtif">
                           <p audience="GSAR" class="- topic/p " id="d830e348">
                              <ph class="- topic/ph " props="autonumber">(iv)</ph>Description, quantity, unit of
measure, unit price, and extended price of supplies delivered or
services performed.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="ugnFnQ">
                           <p audience="GSAR" class="- topic/p " id="d830e357">
                              <ph class="- topic/ph " props="autonumber">(v)</ph>Shipping and payment terms (<i class="+ topic/ph hi-d/i ">e.g.</i>,shipment
number and date of shipment, prompt payment discount terms). Bill of
lading number and weight of shipment will be shown for shipments
on Government bills of lading.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="syEbvC">
                           <p audience="GSAR" class="- topic/p " id="d830e370">
                              <ph class="- topic/ph " props="autonumber">(vi)</ph>Name and address of Contractor
official to whom payment is to be sent (must be the same as that
in the contract or in a proper notice of assignment).</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="IoRXOk">
                           <p audience="GSAR" class="- topic/p " id="d830e379">
                              <ph class="- topic/ph " props="autonumber">(vii)</ph>Name (where practicable), title,
phone number, and mailing address of person to be notified in the
event of a defective invoice.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="MJNbFM">
                           <p audience="GSAR" class="- topic/p " id="d830e388">
                              <ph class="- topic/ph " props="autonumber">(viii)</ph>Any other information or documentation
required by the contract (such as evidence of shipment).</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="IXJDWV">
                           <p audience="GSAR" class="- topic/p " id="d830e397">
                              <ph class="- topic/ph " props="autonumber">(ix)</ph>While not required, the Contractor
is strongly encouraged to assign an identification number to each
invoice.</p>
                        </li>
                     </ol>
                  </li>
                  <li audience="GSAR" class="- topic/li " id="LvXCZi">
                     <p audience="GSAR" class="- topic/p " id="d830e409">
                        <ph class="- topic/ph " props="autonumber">(6)</ph>
                        <i class="+ topic/ph hi-d/i ">Interest penalty</i>. An interest
penalty shall be paid automatically by the designated payment office,
without request from the Contractor, if payment is not made by the
due date and the conditions listed in paragraphs (a)(6)(i) through (a)(6)(iii)
of this clause are met, if applicable. However, when the due date
falls on a Saturday, Sunday, or legal holiday when Federal Government
offices are closed and Government business is not expected to be
conducted, payment may be made on the following business day without
incurring a late payment interest penalty.</p>
                     <ol class="- topic/ol " id="d838e416">
                        <li audience="GSAR" class="- topic/li " id="cOkcTO">
                           <p audience="GSAR" class="- topic/p " id="d830e422">
                              <ph class="- topic/ph " props="autonumber">(i)</ph>A proper invoice was received by
the designated billing office.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="vXNGOu">
                           <p audience="GSAR" class="- topic/p " id="d830e431">
                              <ph class="- topic/ph " props="autonumber">(ii)</ph>A receiving report or other Government
documentation authorizing payment was processed, and there was no disagreement
over quantity, quality, or Contractor compliance with any contract
term or condition.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="DBMJDO">
                           <p audience="GSAR" class="- topic/p " id="d830e440">
                              <ph class="- topic/ph " props="autonumber">(iii)</ph>In the case of a final invoice
for any balance of funds due the Contractor for supplies delivered
or services performed, the amount was not subject to further contract
settlement actions between the Government and the Contractor.</p>
                        </li>
                     </ol>
                  </li>
                  <li audience="GSAR" class="- topic/li " id="i1873592">
                     <p audience="GSAR" class="- topic/p " id="d830e451">
                        <ph class="- topic/ph " props="autonumber">(7)</ph>
                        <i class="+ topic/ph hi-d/i ">Computing
penalty amount</i>. The interest penalty shall be at the rate established
by the Secretary of the Treasury under section 12 of the Contract
Disputes Act of 1978 (<xref class="- topic/xref "
                              format="html"
                              href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                              scope="external">41 U.S.C. 611</xref>) that
is in effect on the day after the due date, except where the interest
penalty is prescribed by other governmental authority (<i class="+ topic/ph hi-d/i ">e.g.</i>,tariffs).
This rate is referred to as the “Renegotiation Board Interest Rate,”
and it is published in the Federal Register semiannually on or about
January 1 and July 1. The interest penalty shall accrue daily on
the invoice principal payment amount approved by the Government
until the payment date of such approved principal amount; and will
be compounded in 30-day increments inclusive from the first day
after the due date through the payment date. That is, interest accrued
at the end of any 30-day period will be added to the approved invoice
principal payment amount and will be subject to interest penalties
if not paid in the succeeding 30-day period. If the designated billing
office failed to notify the Contractor of a defective invoice within
the periods prescribed in paragraph <xref class="- topic/xref "
                              href="#GSAM_552_232_25"
                              outputclass="fm:(alpha)(number)"/> of this clause,
the due date on the corrected invoice will be adjusted by subtracting
from such date the number of days taken beyond the prescribed notification
of defects period. Any interest penalty owed the Contractor will
be based on this adjusted due date. Adjustments will be made by
the designated payment office for errors in calculating interest
penalties.</p>
                     <ol class="- topic/ol " id="d838e467">
                        <li audience="GSAR" class="- topic/li " id="ZdINOq">
                           <p audience="GSAR" class="- topic/p " id="d830e474">
                              <ph class="- topic/ph " props="autonumber">(i)</ph>For
the sole purpose of computing an interest penalty that might be
due the Contractor, Government acceptance shall be deemed to have
occurred constructively on the 7th day (unless otherwise specified
in this contract) after the Contractor delivered the supplies or
performed the services in accordance with the terms and conditions
of the contract, unless there is a disagreement over quantity, quality,
or Contractor compliance with a contract provision. In the event
that actual acceptance occurs within the constructive acceptance
period, the determination of an interest penalty shall be based
on the actual date of acceptance. The constructive acceptance requirement
does not, however, compel Government officials to accept supplies
or services, perform contract administration functions, or make
payment prior to fulfilling their responsibilities.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="ZlczqM">
                           <p audience="GSAR" class="- topic/p " id="d830e486">
                              <ph class="- topic/ph " props="autonumber">(ii)</ph>The following periods of time
will not be included in the determination of an interest penalty:</p>
                           <ol class="- topic/ol " id="d838e489">
                              <li audience="GSAR" class="- topic/li " id="fsRprH">
                                 <p audience="GSAR" class="- topic/p " id="d830e496">
                                    <ph class="- topic/ph " props="autonumber">(A)</ph>The
period taken to notify the Contractor of defects in invoices submitted
to the Government, but this may not exceed 7 days (3 days for meat,
meat food products, or fish; 5days for perishable agricultural commodities, dairy
products, edible fats or oils, and food products prepared from edible
fats or oils).</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="oSsUGB">
                                 <p audience="GSAR" class="- topic/p " id="d830e505">
                                    <ph class="- topic/ph " props="autonumber">(B)</ph>The period between the defects
notice and resubmission of the corrected invoice by the Contractor.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="mOtchr">
                                 <p audience="GSAR" class="- topic/p " id="d830e514">
                                    <ph class="- topic/ph " props="autonumber">(C)</ph>For incorrect electronic funds
transfer (EFT) information, in accordance with the EFT clause of
this contract.</p>
                              </li>
                           </ol>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="PjFAFs">
                           <p audience="GSAR" class="- topic/p " id="d830e525">
                              <ph class="- topic/ph " props="autonumber">(iii)</ph>Interest penalties will not continue
to accrue after the filing of a claim for such penalties under the
clause at 52.233-1, Disputes, or for more than 1 year. Interest
penalties of less than $1 need not be paid.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="LWygRK">
                           <p audience="GSAR" class="- topic/p " id="d830e534">
                              <ph class="- topic/ph " props="autonumber">(iv)</ph>Interest penalties are not required
on payment delays due to disagreement between the Government and
the Contractor over the payment amount or other issues involving
contract compliance or on amounts temporarily withheld or retained
in accordance with the terms of the contract. Claims involving disputes,
and any interest that may be payable, will be resolved in accordance
with the clause at 52.233-1, Disputes.</p>
                        </li>
                     </ol>
                  </li>
                  <li audience="GSAR" class="- topic/li " id="PgrHbF">
                     <p audience="GSAR" class="- topic/p " id="d830e545">
                        <ph class="- topic/ph " props="autonumber">(8)</ph>Prompt payment discounts. An interest
penalty also shall be paid automatically by the designated payment
office, without request from the Contractor, if a discount for prompt
payment is taken improperly. The interest penalty will be calculated
as described in paragraph <xref class="- topic/xref "
                              href="#GSAM_552_232_25"
                              outputclass="fm:(alpha)(number)"/> of this clause
on the amount of discount taken for the period beginning with the
first day after the end of the discount period through the date
when the Contractor is paid.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li " id="lTPBmX" props="Runin">
                     <p audience="GSAR" class="- topic/p " id="d830e557">
                        <ph class="- topic/ph " props="autonumber">(9)</ph>
                        <i class="+ topic/ph hi-d/i ">Additional
interest penalty</i>.</p>
                     <ol class="- topic/ol " id="d838e562">
                        <li audience="GSAR" class="- topic/li " id="woRHsx">
                           <p audience="GSAR" class="- topic/p " id="d830e570">
                              <ph class="- topic/ph " props="autonumber">(i)</ph>If this contract was awarded on
or after October 1,1989, a penalty amount, calculated in accordance
with paragraph (a)(9)(iii) of this clause, shall be paid in addition
to the interest penalty amount if the Contractor—</p>
                           <ol class="- topic/ol " id="d838e572">
                              <li audience="GSAR" class="- topic/li " id="oReaBW">
                                 <p audience="GSAR" class="- topic/p " id="d830e580">
                                    <ph class="- topic/ph " props="autonumber">(A)</ph>Is owed an interest penalty of
$1 or more;</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="QDyzDV">
                                 <p audience="GSAR" class="- topic/p " id="d830e589">
                                    <ph class="- topic/ph " props="autonumber">(B)</ph>Is not paid the interest penalty
within 10days after the date the invoice amount is paid; and</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="znXLlA">
                                 <p audience="GSAR" class="- topic/p " id="d830e598">
                                    <ph class="- topic/ph " props="autonumber">(C)</ph>Makes a written demand to the designated
payment office for additional penalty payment, in accordance with
paragraph (a)(9)(ii) of this clause, postmarked not later than 40days
after the invoice amount is paid.</p>
                              </li>
                           </ol>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="AQSzVk" props="Runin">
                           <ol class="- topic/ol " id="d838e611">
                              <li audience="GSAR" class="- topic/li " id="QTHNqE">
                                 <p audience="GSAR" class="- topic/p " id="vJHNDD">
                                    <ph class="- topic/ph " props="autonumber">(A)</ph>Contractors shall support written
demands for additional penalty payments with the following data.
No additional data shall be required. Contractors shall—</p>
                                 <ol class="- topic/ol ">
                                    <li audience="GSAR" class="- topic/li " id="xcsLgN">
                                       <p audience="GSAR" class="- topic/p " id="d830e619">
                                          <ph class="- topic/ph " props="autonumber">(1)</ph>Specifically assert that late payment
interest is due under a specific invoice, and request payment of
all overdue late payment interest penalty and such additional penalty
as may be required;</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li " id="QnqbbT">
                                       <p audience="GSAR" class="- topic/p " id="d830e628">
                                          <ph class="- topic/ph " props="autonumber">(2)</ph>Attach a copy of the invoice on
which the unpaid late payment interest was due; and</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li " id="jEwGKq">
                                       <p audience="GSAR" class="- topic/p " id="d830e637">
                                          <ph class="- topic/ph " props="autonumber">(3)</ph>State that payment of the principal
has been received, including the date of receipt.</p>
                                    </li>
                                 </ol>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="eTqUOO">
                                 <p audience="GSAR" class="- topic/p " id="d830e646">
                                    <ph class="- topic/ph " props="autonumber">(B)</ph>Demands must be postmarked on or
before the 40th day after payment was made, except that—</p>
                                 <ol class="- topic/ol " id="d838e654">
                                    <li audience="GSAR" class="- topic/li " id="VpaJKr">
                                       <p audience="GSAR" class="- topic/p " id="d830e659">
                                          <ph class="- topic/ph " props="autonumber">(1)</ph>If
the postmark is illegible or nonexistent, the demand must have been
received and annotated with the date of receipt by the designated
payment office on or before the 40th day after payment was made;
or</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li " id="euMYYB">
                                       <p audience="GSAR" class="- topic/p " id="d830e671">
                                          <ph class="- topic/ph " props="autonumber">(2)</ph>If the postmark is illegible or
nonexistent and the designated payment office fails to make the
required annotation, the demand’s validity will be determined by
the date the Contractor has placed on the demand; provided such
date is no later than the 40th day after payment was made.</p>
                                    </li>
                                 </ol>
                              </li>
                           </ol>
                        </li>
                        <li audience="GSAR" class="- topic/li " id="mIhFgb">
                           <ol class="- topic/ol " id="d838e692">
                              <li audience="GSAR" class="- topic/li " id="BRUHbG">
                                 <p audience="GSAR" class="- topic/p " id="FilHRC">
                                    <ph class="- topic/ph " props="autonumber">(A)</ph>The additional penalty shall be
equal to 100 percent of any original late payment interest penalty,
except—</p>
                                 <ol class="- topic/ol ">
                                    <li audience="GSAR" class="- topic/li " id="JOWqGa">
                                       <p audience="GSAR" class="- topic/p " id="d830e697">
                                          <ph class="- topic/ph " props="autonumber">(1)</ph>The additional
penalty shall not exceed $5,000;</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li " id="xkRdzV">
                                       <p audience="GSAR" class="- topic/p " id="d830e706">
                                          <ph class="- topic/ph " props="autonumber">(2)</ph>The additional penalty shall never
be less than $25; and</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li " id="bnPLAg">
                                       <p audience="GSAR" class="- topic/p " id="d830e715">
                                          <ph class="- topic/ph " props="autonumber">(3)</ph>No additional penalty is owed if
the amount of the underlying interest penalty is less than $1.</p>
                                    </li>
                                 </ol>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="PzQSqL">
                                 <p audience="GSAR" class="- topic/p " id="d830e727">
                                    <ph class="- topic/ph " props="autonumber">(B)</ph>If the interest penalty ceases
to accrue in accordance with the limits stated in paragraph (a)(5)(iii)
of this clause, the amount of the additional penalty shall be calculated
on the amount of interest penalty that would have accrued in the
absence of these limits, subject to the overall limits on the additional
penalty specified in subdivision (a)(7)(iii)(A) of this clause.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="vnzufJ">
                                 <p audience="GSAR" class="- topic/p " id="d830e736">
                                    <ph class="- topic/ph " props="autonumber">(C)</ph>For determining the maximum and
minimum additional penalties, the test shall be the interest penalty
due on each separate payment made for each separate contract. The
maximum and minimum additional penalty shall not be based upon individual
invoices unless the invoices are paid separately. Where payments
are consolidated for disbursing purposes, the maximum and minimum
additional penalty determination shall be made separately for each
contract therein.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li " id="AwlNIG">
                                 <p audience="GSAR" class="- topic/p " id="d830e745">
                                    <ph class="- topic/ph " props="autonumber">(D)</ph>The additional penalty does not
apply to payments regulated by other Government regulations (e.g.,payments under
utility contracts subject to tariffs and regulation).</p>
                              </li>
                           </ol>
                        </li>
                     </ol>
                  </li>
               </ol>
            </li>
            <li audience="GSAR" class="- topic/li " id="uhxoZK" props="Runin">
               <p audience="GSAR" class="- topic/p " id="d830e760">
                  <ph class="- topic/ph " props="autonumber">(b)</ph>
                  <i class="+ topic/ph hi-d/i ">Contract
financing payments</i>.</p>
               <ol class="- topic/ol " id="d838e768">
                  <li audience="GSAR" class="- topic/li " id="Yscjbj">
                     <p audience="GSAR" class="- topic/p " id="d830e773">
                        <ph class="- topic/ph " props="autonumber">(1)</ph>Due dates for recurring financing
payments. If this contract provides for contract financing, requests
for payment shall be submitted to the designated billing office
as specified in this contract or as directed by the Contracting
Officer. Contract financing payments shall be made on the Enter
value:<cite class="- topic/cite "
                              outputclass="SingleLine"
                              xtrc="552.232-25_d876e789">[insert
day as prescribed by Agency head; if not prescribed, insert 30thday]</cite> day
after receipt of a proper contract financing request by the designated
billing office. In the event that an audit or other review of a
specific financing request is required to ensure compliance with
the terms and conditions of the contract, the designated payment
office is not compelled to make payment by the due date specified.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li " id="HILSfT">
                     <p audience="GSAR" class="- topic/p " id="d830e791">
                        <ph class="- topic/ph " props="autonumber">(2)</ph>Due dates for other contract financing.
For advance payments, loans, or other arrangements that do not involve recurring
submissions of contract financing requests, payment shall be made
in accordance with the corresponding contract terms or as directed
by the Contracting Officer.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li " id="YRSarV">
                     <p audience="GSAR" class="- topic/p " id="d830e800">
                        <ph class="- topic/ph " props="autonumber">(3)</ph>Interest penalty not applicable.
Contract financing payments shall not be assessed an interest penalty
for payment delays.</p>
                  </li>
               </ol>
            </li>
            <li audience="GSAR" class="- topic/li " id="uaoiBi">
               <p audience="GSAR" class="- topic/p " id="d830e811">
                  <ph class="- topic/ph " props="autonumber">(c)</ph>Fast payment procedure due dates.
If this contract contains the clause at 52.213-1, Fast Payment Procedure,
payments will be made within 15 days after the date of receipt of
the invoice.</p>
            </li>
         </ol>
         <p audience="GSAR"
            class="- topic/p "
            id="CCKJBv"
            outputclass="Endofclause">(End
of clause)</p>
      </conbody>
   </concept>
</dita>
