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: | Fixed Price Service; Cost Reimbursement Research and Development; Fixed Price Research and Development; Cost Reimbursement Supply; Fixed Price Supply; Cost Reimbursement Service; Fixed Price Construction; Cost Reimbursement Construction; 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: | Simplified Acquisition Procedures; |
Subject: | |
ProcurementType: | |
Contract Threshold: | >150,000 |
Prescription Overview: | |
Clause Overview: |
(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.