FAR 52.232-17 - Interest
Prescribed in 32.611(a) and (b) | |
Effective Date: | 1 May 2014 |
Clause or Provision: | Clause |
Provision or Clause Number: | 52.232-17 - Interest |
Principle Type And/Or Purpose of Contract: | |
Required: | |
Applicable: | Time and Materials/Labor Hour; Leasing of Motor Vehicles; Communication Services; Dismantling, Demolition, or Removal of Improvements; Architect-Engineering; Facilities; Indefinite Delivery; Transportation; Utility Services; |
Optional: | |
Subject: | Invoices and Payments |
ProcurementType: | |
Contract Threshold: | >150,000 |
Prescription Overview: |
Prescription(a) The contracting officer shall insert the clause at 52.232-17, Interest, in solicitations and contracts unless it is contemplated that the contract will be in one or more of the following categories: (1) Contracts at or below the simplified acquisition threshold. (2) Contracts with Government agencies. (3) Contracts with a State or local government or instrumentality. (4) Contracts with a foreign government or instrumentality. (5) Contracts without any provision for profit or fee with a nonprofit organization. (6) Contracts described in Subpart 5.5, Paid Advertisements. (7) Any other exceptions authorized under agency procedures. (b) The contracting officer may insert the FAR clause at 52.232-17, Interest, in solicitations and contracts when it is contemplated that the contract will be in any of the categories specified in 32.611(a). |
Clause Overview: |
Clause(a) Except as otherwise provided in this contract under a Price Reduction for Defective Certified Cost or Pricing Data clause or a Cost Accounting Standards clause, all amounts that become payable by the Contractor to the Government under this contract shall bear simple interest from the date due until paid unless paid within 30 days of becoming due. The interest rate shall be the interest rate established by the Secretary of the Treasury as provided in 41 U.S.C. 7109, which is applicable to the period in which the amount becomes due, as provided in paragraph (e) of this clause, and then at the rate applicable for each six-month period as fixed by the Secretary until the amount is paid.
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Important Notes/Requirements: |
This clause requires amounts that become payable by the contractor to the government to be repaid with simple interest. Does not apply to contract below the simplified acquisition threshold |
Subcontract Threshold: | >150,000 |
Incorporated by Reference: | Yes |
Uniform Contract Format: | I |
Editor: | Marshall |
Personal notes.