[Federal Register Volume 72, Number 125 (Friday, June 29, 2007)]
[Notices]
[Pages 35742-35743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-3178]


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DEPARTMENT OF THE TREASURY

Fiscal Service


Prompt Payment Interest Rate; Contract Disputes Act

AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.

ACTION: Notice.

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SUMMARY: For the period beginning July 1, 2007, and ending on December 
31, 2007, the prompt payment interest rate and the contract disputes 
interest rate is 5\3/4\ per centum per annum.

ADDRESSES: Comments or inquiries may be mailed to Carol Brooks, 
Accountant, Borrowings Accounting Team, Division of Accounting 
Operations, Office of Public Debt Accounting, Bureau of the Public 
Debt, Parkersburg, West Virginia 26106-1328. A copy of this Notice is 
available at http://www.publicdebt.treas.gov.

DATES: Effective July 1, to December 31, 2007.

FOR FURTHER INFORMATION CONTACT: Veronica Lowther, Acting Director, 
Division of Accounting Operations, Office of Public Debt Accounting, 
Bureau of the Public Debt, Parkersburg, West Virginia 26106-1328, (304) 
480-5161; Carol Brooks, Accountant, Borrowings Accounting Team, 
Division of Accounting Operations, Office of Public Debt Accounting, 
Bureau of the Public Debt, Parkersburg, West Virginia 26106-1328, (304) 
480-5167; Amy Mertz Brown, Deputy Chief Counsel, Office of the Chief 
Counsel, Bureau of the Public Debt, (202) 504-3715; or Brenda L. 
Hoffman, Attorney-Adviser, Office of the Chief Counsel, Bureau of the 
Public Debt, (202) 504-3706.

SUPPLEMENTARY INFORMATION: An agency acquiring property or services 
from a business concern, but failing to pay for each completed 
delivered item of property or service by the required payment date, 
must pay the business concern an interest penalty, commonly known as 
the Prompt Payment Interest Penalty. 31 U.S.C. 3902(a). The applicable 
interest rate for determining this penalty is the rate established by 
the Secretary of the Treasury under Sec.  12 of the Contract Disputes 
Act (codified at 41 U.S.C. 611) and in effect at the time the agency 
accrues the obligation to pay this late payment interest penalty. 31 
U.S.C. 3902(a). Agencies must pay the interest penalty calculated with 
the Prompt Payment Interest Rate, ``for the period beginning on the 
date after the required payment date and ending on the date on which 
the payment is made.'' 31 U.S.C. 3902(b). If an interest penalty is 
owed to a business concern because of a late payment, the penalty must 
be paid regardless of whether the business concern requested payment of 
the penalty.
    An agency also must pay interest on claims found due to contractors 
that are submitted to procuring agencies for payment, payable for the 
time period between when the contracting officer receives the claim and 
when the procuring agency pays the claim. Contract Disputes Act Sec.  
12; 41 U.S.C. 611.
    The Secretary is required to establish an interest rate for both of 
these purposes. 31 U.S.C. 3902(a); 41 U.S.C. 611. Therefore, notice is 
given that the Secretary of the Treasury has determined that the rate 
of interest for purposes of both Prompt Payment and the Contract 
Disputes Act, applicable for the period beginning July 1, 2007, and

[[Page 35743]]

ending on December 31, 2007, is 5\3/4\ per centum per annum.

Kenneth E. Carfine,
Fiscal Assistant Secretary.
[FR Doc. 07-3178 Filed 6-28-07; 8:45 am]
BILLING CODE 4810-39-M