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(Revised December 20, 2005)



 232.903 Responsibilities.
 232.904 Determining payment due dates.
 232.906 Making payments.

232.903  Responsibilities

DoD policy is to assist small disadvantaged business concerns by paying them as quickly as possible after invoices are received and before normal payment due dates established in the contract (see 232.906(a)).


232.904  Determining payment due dates.


      (d)  In most cases, Government acceptance or approval can occur within the 7-day constructive acceptance period specified in the FAR Prompt Payment clauses.  Government payment of construction progress payments can, in most cases, be made within the 14-day period allowed by the Prompt Payment for Construction Contracts clause.  While the contracting officer may specify a longer period because the period specified in the contract is not reasonable or practical, such change should be coordinated with the Government offices responsible for acceptance or approval and for payment.  Reasons for specifying a longer period include but are not limited to:  the nature of the work or supplies or services, inspection or testing requirements, shipping and acceptance terms, and resources available at the acceptance activity.  A constructive acceptance period of less than the cited 7 or 14 days is not authorized.


232.906  Making payments.


     (a)(i)  Generally, the contracting officer shall insert the standard due date of 14 days for interim payments on cost-reimbursement contracts for services in the clause at FAR 52.232-25, Prompt Payment, when using the clause with its Alternate I.


            (ii)  The restrictions of FAR 32.906 prohibiting early payment do not apply to invoice payments made to small disadvantaged business concerns.  However, contractors shall not be entitled to interest penalties if the Government fails to make early payment.


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