[Federal Register Volume 86, Number 17 (Thursday, January 28, 2021)]
[Notices]
[Pages 7457-7458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01681]


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DEPARTMENT OF THE TREASURY

Fiscal Service

Bureau of the Fiscal Service


Prompt Payment Interest Rate; Contract Disputes Act

AGENCY: Fiscal Service, Bureau of the Fiscal Service, Treasury.

ACTION: Notice of Prompt Payment Interest Rate; Contract Disputes Act.

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SUMMARY: For the period beginning January 1, 2021, and ending on June 
30, 2021, the prompt payment interest rate is \7/8\ per centum per 
annum.

DATES: Applicable January 1, 2021, to June 30, 2021.

ADDRESSES: Comments or inquiries may be mailed to: E-Commerce Division, 
Bureau of the Fiscal Service, 401 14th Street SW, Room 306F, 
Washington, DC 20227. Comments or inquiries may also be emailed to 
<a href="/cdn-cgi/l/email-protection#7e2e0c11130e0a2e1f07131b100a3e18170d1d1f12500a0c1b1f0d0b0c0750191108"><span class="__cf_email__" data-cfemail="f5a5879a988581a5948c98909b81b5939c86969499db818790948680878cdb929a83">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Thomas M. Burnum, E-Commerce Division, 
(202) 874-6430; or Thomas Kearns, Senior Counsel, Office of the Chief 
Counsel, (202) 874-7036.

SUPPLEMENTARY INFORMATION: An agency that has acquired property or 
service from a business concern and has failed

[[Page 7458]]

to pay for the complete delivery of property or service by the required 
payment date shall pay the business concern an interest penalty. 31 
U.S.C. 3902(a). The Contract Disputes Act of 1978, Sec. 12, Public Law 
95-563, 92 Stat. 2389, and the Prompt Payment Act, 31 U.S.C. 3902(a), 
provide for the calculation of interest due on claims at the rate 
established by the Secretary of the Treasury.
    The Secretary of the Treasury has the authority to specify the rate 
by which the interest shall be computed for interest payments under 
section 12 of the Contract Disputes Act of 1978 and under the Prompt 
Payment Act. Under the Prompt Payment Act, if an interest penalty is 
owed to a business concern, the penalty shall be paid regardless of 
whether the business concern requested payment of such penalty. 31 
U.S.C. 3902(c)(1). Agencies must pay the interest penalty calculated 
with the interest rate, which is in effect at the time the agency 
accrues the obligation to pay a late payment interest penalty. 31 
U.S.C. 3902(a). ``The interest penalty shall be paid for the period 
beginning on the day after the required payment date and ending on the 
date on which payment is made.'' 31 U.S.C. 3902(b).
    Therefore, notice is given that the Secretary of the Treasury has 
determined that the rate of interest applicable for the period 
beginning January 1, 2021, and ending on June 30, 2021, is \7/8\ per 
centum per annum.

Timothy E. Gribben,
Commissioner, Bureau of the Fiscal Service.
[FR Doc. 2021-01681 Filed 1-27-21; 8:45 am]
BILLING CODE 4810-AS-P


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