D.C. Mun. Regs. tit. 1, r. 1-1709

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 1-1709 - IMPOSITION OF INTEREST PENALTY

1709.1

A business concern shall be entitled automatically to receive an interest penalty payment if the following conditions are met:

(a) The business concern has a contract or purchase order for the goods or services provided;

(b) The agency has accepted property or services and there is no disagreement over quantity, quality or other contract provisions which would affect payment;

(c) A proper invoice has been received by the designated payment officer (except where no invoice is required; for example, as with periodic lease payment), or the agency has failed to give the business concern a notice of defect as required by § 4905;

(d) Payment is not made on or before the end of the following periods:

(1) Meat and meat food products - the third (3rd) calendar day after the payment due date;

(2) Perishable agricultural commodities - the fifth (5th) calendar day after the payment date; and

(3) Other goods, property or services - the fifteenth (15th) calendar day after the payment date.

1709.2

A business concern shall be entitled to receive an interest penalty payment if it meets the conditions of §§ 1709.1(a) to (d) and if an agency has taken a time discount from an amount due the business concern after the discount period has expired and has failed to correct the underpayment on or before the applicable time period specified in § 1709.1(d).

1709.3

Interest penalties shall not be paid in the following circumstances:

(a) Payment has not made because of a disagreement between an agency and a business concern;

(b) Payments are made to a third party on behalf of the vendor solely for financing purposes;

(c) Payments are made in advance; and

(d) Payments are made for a period in which amounts are withheld temporarily in accordance with a contract.

D.C. Mun. Regs. tit. 1, r. 1-1709

Final Rulemaking published at 35 DCR 8131, 8135-36 (November 18, 1988)