Part 2, Chapter 3: Manual Exhibit 2-3-NPrompt Payment Act
PROMPT PAYMENT ACT
5 Code of Federal Regulations (CFR) 1315: Prompt Payment; Formerly Office of Management and Budget (OMB) Circular A-125
Federal Register: September 29, 1999 (Volume 64,Number 188)Rules and Regulations Page 52579-52594 from the “Federal Register Online” via Government Printing Office (GPO).
Summary: The Prompt Payment Final Rule (formerly OMB Circular A-125, “Prompt Payment”) requires Executive departments and agencies to pay commercial obligations within certain time periods and to pay interest penalties when payments are late. On June 17, 1998, the OMB requested comment on proposed revisions to the circular. The circular was revised to reflect the increased use of electronic commerce in the Federal government and the private sector and to reflect the requirements of the Debt Collection Improvement Act of 1996. Comments were received from 21 entities, including 15 Federal agencies, five vendors, and one university. After considering the comments received, the OMB issued final rule 5 CFR 1315 on September 29, 1999.
To see the entire act refer to this WEB site:
5 CFR 1315 (Text File) http://fms.treas.gov/prompt/5cfr1315.text
5 CFR 1315 (PDF File) http://fms.treas.gov/prompt/5cfr1315.pdf
Background on Prompt Payment
Frequently Asked Questions
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