Page:United States Statutes at Large Volume 102 Part 3.djvu/506

 102 STAT. 2458

PUBLIC LAW 100-496—OCT. 17, 1988 PERIODIC PAYMENTS UNDER PROPERTY AND SERVICE CONTRACTS

SEC. 5. Section 3903 of title 31, United States Code, is further amended— (1) by redesignating paragraph (5) as paragraph (7); and (2) by inserting after paragraph (4) the following: "(5) require periodic payments, in the case of a property or service contract which does not prohibit periodic payments for partial deliveries or other contract performance during the contract period, upon— "(A) submission of an invoice for property delivered or services performed during the contract period, if an invoice is required by the contract; and "(B) either— "(i) acceptance of the property or services by an employee of an agency authorized to accept the property or services; or "(ii) the making of a determination by such an employee, that the performance covered by the payment conforms to the terms and conditions of the contract;". INTEREST PENALTIES ON PROGRESS PAYMENTS AND RETAINED AMOUNTS UNDER CONSTRUCTION CONTRACTS

S E C 6. Section 3903 of title 31, United States Code, is amended— (1) by inserting "(a)" before "The Director"; (2) by inserting after paragraph (5) (as added by section 5) the following new paragraph: "(6) in the case of a construction contract, provide for the payment of interest on— "(A) a progress payment (including a monthly percentage-of-completion progress payment or milestone payments for completed phases, increments, or segments of any project) that is approved as payable by the agency pursuant to subsection (b) of this section and remains unpaid for— "(i) a period of more than 14 days after receipt of the payment request by the place or person designated by the agency to first receive such requests; or "(ii) a longer period, specified in the solicitation, if required to afford the Government a practicable opportunity to adequately inspect the work and to determine the adequacy of the contractor's performance under the contract; and "(B) any amounts which the agency has retained pursuant to a prime contract clause providing for retaining a percentage of progress payments otherwise due to a contractor and that are approved for release to the contractor, if such retained amounts are not paid to the contractor by a date specified in the contract or, in the absence of such a specified date, by the 30th day after final acceptance;"; and (3) by adding at the end of such subsection the following new subsection: "(b)(l) A payment request may not be approved under subsection (a)(6)(A) of this section unless the application for such payment includes— "(A) substantiation of the amounts requested; and

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