BOP Program Statement 2011.13 § 4

a. Starting the Payment Period. The period available to make a timely payment of an invoice

without incurring interest is determined by the date a proper invoice is received. Guidelines for

determining when an invoice is received are in Section 2.l.

b. Due Dates. The Prompt Payment Act provides the following criteria for determining due

dates:

■ Meat and meat food products, eggs, and fresh or frozen fish or seafood: Not later than seven

days after date of delivery.

■ Perishable agricultural commodities (fresh or frozen fruits and vegetables): Not later than 10

days after date of delivery, unless another payment date is specified in the contract.

■ Dairy products and food products prepared from edible fats or oils: Not later than 10 days

after receipt of a proper invoice.

■ Charge Account purchases: 30 days after receipt of the statement.

■ Construction Progress Payment requests: 14 days after receipt of a payment request or a longer

period, specified in the contract, if required to give the Government an opportunity to inspect

the work and to determine the adequacy of the contractor’s performance.

P2011.13 5/29/2014 7

■ All other types of construction payment requests, such as partial payments, amounts retained,

and final payments, are due on the 30th day after receipt of a proper invoice or the

Government’s acceptance, whichever is later.

■ Payments as a result of Architectural and Engineering requests: 30 days after receipt of a

proper invoice or the Government’s acceptance of the work, whichever is later.

■ Unauthorized procurement: The payment due date is calculated from the date the Contracting

Officer signs the ratification.

■ All other goods and services: On the date(s) specified in the contract. If a payment due date is

not specified, 30 days after the start of the payment period.

Example 1: Bessie’s Dairy Farm

Invoice Received: May 5

Goods Received: May 1

Goods Accepted: May 6

Due Date: May 15

The payment period begins on May 5 because payment terms for dairy products are 10 days after

receipt of a proper invoice.

Example 2: Jim’s All-Stars

Invoice Received: June 30

Goods Received: June 30

Goods Accepted: July 2

Vendor notified of a defective invoice: July 10

Corrected invoice received: July 14

Due Date: August 10

The payment period begins on July 14, after the corrected invoice is received; however, it took 10

days to notify the vendor of the defective invoice. Therefore, the payment period is reduced by

the number of days in excess of the seven allowed that it took to notify the vendor. The original

due date of August 13 minus three days (the number of days in excess of the seven days allowed to

notify of a defective invoice) results in a due date of August 10.