BOP Program Statement 2011.13 § 1

This Program Statement (PS) establishes policies and procedures to be followed at each payment

site to ensure compliance with the Prompt Payment Act, Office of Management and Budget

(OMB), Title 5, Code of Federal Regulations (CFR), Part 1315, and the United States Code (USC),

Title 31, Chapter 39, Sections 3901-3907.

The Prompt Payment Act requires Federal agencies to make payments on time, to pay interest

penalties when payments are late, and to take discounts only when payments are made within the

discount period. Provisions within the Prompt Payment Act provide for timely payment of

obligations, better relationships with contractors, improved competition for Government business,

and reduced costs to the Government for property and services.

Agencies must make payments under contracts as prescribed in the Prompt Payment Act no later

than the due date, or, if appropriate, the discount date. Payments must be based on receipt of a

proper invoice and satisfactory performance of the purchase order or contract terms. Discounts

may be taken only when payments are made on or before the discount date. If agencies take

discounts after the discount date, or if they fail to make timely payments, interest must be paid.

Interest is paid automatically, without vendors having to request it. The cost of the interest

payment is absorbed from the Cost Center procuring the goods or services. Temporary

unavailability of funds does not relieve agencies of the obligation to pay interest.

P2011.13 5/29/2014 2

a. Summary of Changes

Policy Rescinded

P2011.10 Prompt Payment Act (09/15/04)

This reissuance removes the requirement for certifying officers to document the reason why an

invoice was paid early and no longer requires certifying officers to sign the voucher (see Section

5.b.). This change is made as a result of the Reduction and Elimination of Duties Management

Assessment Project (REDMAP) initiative.

b. Program Objectives. Expected results of this program are:

■ Staff will process payments in a timely manner.

■ Late payments will include the appropriate amount of interest due.

■ Discounts will be taken when appropriate.