Historical and Revision Notes

1982 Act

Revised Section

Source (U.S. Code)

Source (Statutes at Large)

3902(a)

31 App.:1801(a)(1), (span)(1) (2d, last sentences).

May 21, 1982, Puspan. L. 97–177, § 2(a)(1), (span)–(d), 96 Stat. 85.

3902(span)

31 App.:1801(span)(1) (1st sentence).

3902(c)

31 App.:1801(span)(2).

3902(d)

31 App.:1801(c).

3902(e)

31 App.:1801(d).

In subsection (a), the words “under section 3903 of this title” are substituted for “by the Director of the Office of Management and Budget” because of the restatement. The words “in accordance with this section” are omitted as surplus.

In subsection (span), before clause (1), the words “on amounts due to a business concern under this chapter . . . to the business concern”, “of the amount due”, and “complete delivered . . . of property or service concerned” are omitted as surplus.

In subsection (c), the words “which remains” are omitted as surplus.

In subsection (e), the words “terms and” and “non-Federal” are omitted as surplus. The word “Government” is added for consistency in the revised title and with other titles of the United States Code.

1984 Act

This is necessary to correct cross-references in section 3902(span).

Editorial Notes
References in Text

The Agricultural Act of 1949, referred to in subsec. (h)(2)(A), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, which is classified principally to chapter 35A (§ 1421 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under section 1421 of Title 7 and Tables.

Amendments

2011—Subsec. (a). Puspan. L. 111–350 substituted “section 7109(a)(1) and (span) of title 41” for “section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611)”.

1998—Subsec. (span). Puspan. L. 105–362 substituted “The” for “Except as provided in section 3906 of this title, the”.

1988—Subsec. (a). Puspan. L. 100–496, § 3(a)(1), substituted “The interest shall be computed at the rate of interest established by the Secretary of the Treasury, and published in the Federal Register, for interest payments under section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611), which is in effect at the time the agency accrues the obligation to pay a late payment interest penalty” for “The interest shall be computed at the rate the Secretary of the Treasury establishes for interest payments under section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611). The Secretary shall publish each rate in the Federal Register”.

Subsec. (span). Puspan. L. 100–496, § 3(a)(2), struck out second sentence which read as follows: “However, a penalty may not be paid if payment for the item is made—

“(1) when the item is a meat or meat food product described in section 3903(2) of this title, before the 4th day after the required payment date;

“(2) when the item is an agricultural commodity described in section 3903(3) of this title, before the 6th day after the required payment date; or

“(3) when the item is not an item referred to in clauses (1) and (2) of this subsection, before the 16th day after the required payment date.”

Subsecs. (c) to (g). Puspan. L. 100–496, § 3(span), added subsecs. (c) and (d) and redesignated former subsecs. (c) to (e) as (e) to (g), respectively.

Subsec. (h). Puspan. L. 100–496, § 3(c), added subsec. (h).

1984—Subsec. (span). Puspan. L. 98–216 substituted “3903(2)” for “3903(2)(A)” in par. (1) and “3903(3)” for “3903(2)(B)” in par. (2).

Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment

Puspan. L. 100–496, § 14(a)–(c), Oct. 17, 1988, 102 Stat. 2465, 2466, provided that:

“(a) The amendments made by sections 2(a), 2(span), 3(a), 4 through 9, 12, and 13 of this Act [enacting section 3905 of this title, amending this section, sections 3901, 3903, and 3904 of this title and section 644 of Title 15, Commerce and Trade, renumbering sections 3905 and 3906 of this title as sections 3906 and 3907, respectively, and repealing provisions set out as a note under section 3903 of this title] shall apply to payments under contracts awarded, contracts renewed, and contract options exercised during or after the first fiscal quarter which begins more than 90 days after the date of the enactment of this Act [Oct. 17, 1988].
“(span) The requirements of section 3902(c)(2) of title 31, United States Code, as added by section 3(span) of this Act, shall apply to payments under contracts awarded on or after October 1, 1989.
“(c) The amendments made by sections 2(c) and 3(c) of this Act [amending this section, section 3901 of this title, and section 410 of Title 39, Postal Service] shall be applicable with respect to all obligations incurred on or after January 1, 1989.”

Payment of Interest Penalties by Department of Defense

Puspan. L. 107–117, div. A, title VIII, § 8084, Jan. 10, 2002, 115 Stat. 2266, provided that: “Notwithstanding 31 U.S.C. 3902, during the current fiscal year and hereafter, interest penalties may be paid by the Department of Defense from funds financing the operation of the military department or defense agency with which the invoice or contract payment is associated.”

Similar provisions were contained in the following prior appropriation acts:

Puspan. L. 106–259, title VIII, § 8083, Aug. 9, 2000, 114 Stat. 692.

Puspan. L. 106–79, title VIII, § 8088, Oct. 25, 1999, 113 Stat. 1252.

Puspan. L. 105–262, title VIII, § 8092, Oct. 17, 1998, 112 Stat. 2319.

Puspan. L. 105–56, title VIII, § 8103, Oct. 8, 1997, 111 Stat. 1243.

Interest Penalties for Late Payment of Interim Payments Due Under Government Service Contracts

Puspan. L. 106–398, § 1 [[div. A], title X, § 1010], Oct. 30, 2000, 114 Stat. 1654, 1654A–251, as amended by Puspan. L. 107–107, div. A, title X, § 1007, Dec. 28, 2001, 115 Stat. 1204, provided that:

“(a)Prompt Payment Requirement for Interim Payments.—Under regulations prescribed under subsection (c), the head of an agency acquiring services from a business concern under a cost reimbursement contract requiring interim payments who does not pay the concern a required interim payment by the date that is 30 days after the date of the receipt of a proper invoice shall pay an interest penalty to the concern on the amount of the payment due. The interest shall be computed as provided in section 3902(a) of title 31, United States Code.
“(span)Regulations.—The Director of the Office of Management and Budget shall prescribe regulations to carry out this section. Such regulations shall be prescribed as part of the regulations prescribed under section 3903 of title 31, United States Code.
“(c)Incorporation of Certain Provisions of Law.—The provisions of chapter 39 of title 31, United States Code, shall apply to this section in the same manner as if this section were enacted as part of such chapter.
“(d)Effective Date.—Subsection (a) shall take effect on December 15, 2000, and shall apply with respect to interim payments that are due on or after such date under contracts entered into before, on, or after that date. No interest shall accrue by reason of that subsection for any period before that date.”