Which act addresses prompt payments and is codified in Title 31, section 3902?

Which act addresses prompt payments and is codified in Title 31, section 3902?

• A. Economy Act
• B. Feed and Forage Act
• C. Prompt Payment Act
• D. Antideficiency Act

Answer: (C)

Prompt payments are governed by a statute that requires agencies to pay properly submitted invoices within a defined period and to pay interest if payments are late. This statute, codified in Title 31, United States Code, section 3902, sets the standard for timely payment in federal procurement and creates a financial incentive for agencies to avoid delays. It helps ensure vendors receive prompt compensation, supporting steady cash flow and reliable contracting relationships. Other statutes address different financial controls. The Economy Act focuses on interagency transactions and ensuring economies in government purchasing, rather than timeliness of payments. The Feed and Forage Act relates to specific authority for payments for forage and related supplies under certain conditions. The Antideficiency Act prohibits incurring obligations or making payments in excess of available appropriations. Hence, the act that directly addresses prompt payments is the Prompt Payment Act.

Prompt payments are governed by a statute that requires agencies to pay properly submitted invoices within a defined period and to pay interest if payments are late. This statute, codified in Title 31, United States Code, section 3902, sets the standard for timely payment in federal procurement and creates a financial incentive for agencies to avoid delays. It helps ensure vendors receive prompt compensation, supporting steady cash flow and reliable contracting relationships.

Other statutes address different financial controls. The Economy Act focuses on interagency transactions and ensuring economies in government purchasing, rather than timeliness of payments. The Feed and Forage Act relates to specific authority for payments for forage and related supplies under certain conditions. The Antideficiency Act prohibits incurring obligations or making payments in excess of available appropriations. Hence, the act that directly addresses prompt payments is the Prompt Payment Act.