Page:United States Statutes at Large Volume 114 Part 3.djvu/293

 PUBLIC LAW 106-398 —APPENDIX 114 STAT. 1654A-251 section 3716 of title 31, may apply paragraphs (2) and (3) of subsection (a) of that section with respect to that collection after (rather than before) the claim is so collected. "(2) Regulations prescribed by the Secretary of Defense under subsection (b) of section 3716 of title 31— "(A) shall include provisions to carry out paragraph (1); and "(B) shall provide the carrier for a claim subject to paragraph (1) with an opportunity to offer an alternative method of repaying the claim (rather than by administrative offset) if the collection of the claim by administrative offset has not already been made. "(3) In this subsection, the term 'simplified acquisition threshold' has the meaning given that term in section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).". (2) The item relating to such section in the table of sections at the beginning of chapter 157 of such title is amended to read as follows: "2636. Deductions from amounts due carriers.". (b) EFFECTIVE DATE. —Subsections (a)(2) and (b) of section 2636 of title 10, United States Code, as added by subsection (a)(1), shall apply with respect to contracts entered into after the date of the enactment of this Act. SEC. 1010. INTEREST PENALTIES FOR LATE PAYMENT OF INTERIM PAYMENTS DUE UNDER GOVERNMENT SERVICE CON- TRACTS. (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 pa5mrients 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. (b) 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. No interest shall accrue by reason of that subsection for any period before that date. Subtitle B—Naval Vessels and Shipyards SEC. 1011. REVISIONS TO NATIONAL DEFENSE FEATURES PROGRAM. Section 2218(k) of title 10, United States Code, is amended— (1) by adding at the end of paragraph (1) the following new sentence: "As consideration for a contract with the head of an agency under this subsection, the company entering into the contract shall agree with the Secretary of Defense to make

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