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   <concept id="i1873543"
            audience="GSAR"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title xtrc="GSAR" class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">552.232-25</ph> Prompt
Payment.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p audience="GSAR" class="- topic/p ">As prescribed in <xref outputclass="fm:ParaNumOnly"
                  href="GSAM-LJAWYFBB.dita#LJAWYFBB"
                  class="- topic/xref "/>(c)(2),
insert the following clause:</p>
         <p audience="GSAR" outputclass="Ctr_SmCaps" class="- topic/p ">Prompt Payment (Nov2009)
(DeviationFAR52.232-25)</p>
         <p audience="GSAR" class="- topic/p ">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 outputclass="fm:(alpha)(number)"
                  href="#i1873543/i1873569"
                  class="- topic/xref ">  Certain food products and other payments.</xref> of
this clause concerning payments due on Saturdays, Sundays, and legal holidays.)</p>
         <ol id="d838e26" class="- topic/ol ">
            <li props="Runin" audience="GSAR" class="- topic/li ">
               <p id="d830e32" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(a)</ph>  I<i class="+ topic/ph hi-d/i ">nvoice
payments</i>.</p>
               <ol id="d838e39" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d830e45" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>  The
due date for making invoice payments by the designated payment office
is:</p>
                     <ol id="d838e49" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e55" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 id="d838e59" class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d830e65" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(A)</ph>  The
10<term class="- topic/term ">th</term> 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 10<term class="- topic/term ">th</term> 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 ">
                                 <p id="d830e80" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(B)</ph>  The 10<term class="- topic/term ">th</term> day
after Government acceptance of supplies delivered or services performed
by the Contractor.</p>
                              </li>
                           </ol>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e94" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph>   For all other orders,
the later of the following two events:</p>
                           <ol id="d838e98" class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d830e104" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(A)</ph>  The 30<term class="- topic/term ">th</term> 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 30<term class="- topic/term ">th</term> 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 ">
                                 <p id="d830e119" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(B)</ph>  The 30<term class="- topic/term ">th</term> day
after Government acceptance of supplies delivered or services performed
by the Contractor.</p>
                              </li>
                           </ol>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e133" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                     <p id="d830e144" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(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 id="d838e148" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e154" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e163" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e172" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e181" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                     <p id="d830e192" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(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 id="i1873569" props="Runin" audience="GSAR" class="- topic/li ">
                     <p id="d830e201" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(4)</ph>   <i class="+ topic/ph hi-d/i ">Certain
food products and other payments</i>.</p>
                     <ol id="d838e208" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e214" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 id="d838e218" class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d830e224" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(A)</ph>  For meat or meat food
products, as defined in section 2(a)(3) of the Packers and Stockyard
Act of 1921 (<xref href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                                          format="html"
                                          scope="external"
                                          class="- topic/xref ">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 7<term class="- topic/term ">th</term>day after product delivery.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d830e241" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(B)</ph>  For fresh or frozen
fish, as defined in section 204(3) of the Fish and Seafood Promotion
Act of1986 (<xref href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                                          format="html"
                                          scope="external"
                                          class="- topic/xref ">16 U.S.C. 4003(3)</xref>),
as close as possible to, but not later than, the 7<term class="- topic/term ">th</term>day
after product delivery.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d830e258" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(C)</ph>  For perishable agricultural
commodities, as defined in section 1(4) of the Perishable Agricultural
Commodities Act of 1930 (<xref href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                                          format="html"
                                          scope="external"
                                          class="- topic/xref ">7 U.S.C. 499a(4)</xref>),
as close as possible to, but not later than, the 10<term class="- topic/term ">th</term> day
after product delivery, unless another date is specified in the
contract.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d830e275" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(D)</ph>  For dairy products,
as defined in section 111(e) of the Dairy Production Stabilization
Act of1983 (<xref href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                                          format="html"
                                          scope="external"
                                          class="- topic/xref ">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 10<term class="- topic/term ">th</term> 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 ">
                           <p id="d830e294" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 id="i1873577" audience="GSAR" class="- topic/li ">
                     <p id="d830e308" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(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 Items, 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 id="d838e315" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e321" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph>  Name
and address of the Contractor.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e330" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e339" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e348" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e357" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e370" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e379" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e388" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(viii)</ph>   Any other information
or documentation required by the contract (such as evidence of shipment).</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e397" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                     <p id="d830e409" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(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 id="d838e416" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e422" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph>  A
proper invoice was received by the designated billing office.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e431" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e440" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 id="i1873592" audience="GSAR" class="- topic/li ">
                     <p id="d830e451" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(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 href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3"
                              format="html"
                              scope="external"
                              class="- topic/xref ">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 outputclass="fm:(alpha)(number)"
                              href="#i1873543/i1873577"
                              class="- topic/xref ">  Contractor’s invoice. 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 Items, 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.</xref> 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 id="d838e467" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e474" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 7<term class="- topic/term ">th</term> 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 ">
                           <p id="d830e486" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph>  The following periods
of time will not be included in the determination of an interest
penalty:</p>
                           <ol id="d838e489" class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d830e496" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(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 ">
                                 <p id="d830e505" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(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 ">
                                 <p id="d830e514" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e525" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                           <p id="d830e534" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 ">
                     <p id="d830e545" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(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 outputclass="fm:(alpha)(number)"
                              href="#i1873543/i1873592"
                              class="- topic/xref "> Computing penalty amount. 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 (41 U.S.C. 611) that is in effect on the day after the due date, except where the interest penalty is prescribed by other governmental authority (e.g.,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   Contractor’s invoice. 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 Items, 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. 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.</xref> 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 props="Runin" audience="GSAR" class="- topic/li ">
                     <p id="d830e557" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(9)</ph>   <i class="+ topic/ph hi-d/i ">Additional
interest penalty</i>.</p>
                     <ol id="d838e562" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e570" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(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 id="d838e572" class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d830e580" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(A)</ph>  Is
owed an interest penalty of $1 or more;</p>
                              </li>
                              <li audience="GSAR" class="- topic/li ">
                                 <p id="d830e589" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(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 ">
                                 <p id="d830e598" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(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 props="Runin" audience="GSAR" class="- topic/li ">
                           <p id="d830e609" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph>
                           </p>
                           <ol id="d838e611" class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(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 ">
                                       <p id="d830e619" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(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 ">
                                       <p id="d830e628" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(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 ">
                                       <p id="d830e637" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(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 ">
                                 <p id="d830e646" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(B)</ph>   Demands must be postmarked
on or before the 40<term class="- topic/term ">th</term> day after payment was made, except
that—</p>
                                 <ol id="d838e654" class="- topic/ol ">
                                    <li audience="GSAR" class="- topic/li ">
                                       <p id="d830e659" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(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 40<term class="- topic/term ">th</term> day after payment
was made; or</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li ">
                                       <p id="d830e671" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(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 40<term class="- topic/term ">th</term> day after payment was
made.</p>
                                    </li>
                                 </ol>
                              </li>
                           </ol>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d830e687" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(iii)</ph>  </p>
                           <ol id="d838e692" class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(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 ">
                                       <p id="d830e697" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(1)</ph>  The
additional penalty shall not exceed $5,000;</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li ">
                                       <p id="d830e706" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(2)</ph>  The additional penalty
shall never be less than $25; and</p>
                                    </li>
                                    <li audience="GSAR" class="- topic/li ">
                                       <p id="d830e715" audience="GSAR" class="- topic/p ">
                                          <ph props="autonumber" class="- topic/ph ">(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 ">
                                 <p id="d830e727" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(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 ">
                                 <p id="d830e736" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(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 ">
                                 <p id="d830e745" audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(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 props="Runin" audience="GSAR" class="- topic/li ">
               <p id="d830e760" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(b)</ph>   <i class="+ topic/ph hi-d/i ">Contract
financing payments</i>.</p>
               <ol id="d838e768" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d830e773" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(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 <cite outputclass="SingleLine" xtrc="552.232-25_d876e789">
                           <i class="+ topic/ph hi-d/i ">[insert
day as prescribed by Agency head; if not prescribed, insert 30</i> 
                           <term class="- topic/term ">th</term> 
                           <i class="+ topic/ph hi-d/i ">day]</i>
                        </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 ">
                     <p id="d830e791" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(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 ">
                     <p id="d830e800" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(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 ">
               <p id="d830e811" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(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" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
      </conbody>
   </concept>
</dita>
