PUBLIC LAW 100-496—OCT. 17, 1988
102 STAT. 2463
"(i) A dispute between a contractor and subcontractor relating to the amount or entitlement of a subcontractor to a payment or a late payment interest penalty under a clause included in the subcontract pursuant to subsection (b) or (c) of this section does not constitute a dispute to which the United States is a party. The United States may not be interpleaded in any judicial or administrative proceeding involving such a dispute. "(j) Except as provide! in subsection (i) of this section, this section shall not limit or impair any contractual, administrative, or judicial remedies otherwise available to a contractor or a subcontractor in the event of a dispute involving late payment or nonpayment by a prime contractor or deficient subcontract performance or nonperformance by a subcontractor. "(k) A contractor's obligation to pay an interest penalty to a subcontractor pursuant to the clauses included in a subcontract under subsection (b) or (c) of this section may not be construed to be an obligation of the United States for such interest penalty. A contract modification may not be made for the purpose of providing reimbursement of such interest penalty. A cost reimbursement Claims. claim may not include any amount for reimbursement of such interest penalty.". (b) The table of sections at the b ^ i n n i n g of such chapter is amended by striking out the items relating to sections 3905 and 3906 and inserting in lieu thereof the following: "3905. Payment provisions relating to construction contracts. "3906. Reports. "3907. Relationship to other laws.". REPORTS
SEC. 10. Section 3906(a) of title 31, United States Code (as redesignated by section 9(a)(l)), is amended to read as follows: "(a)(l) By the 60th day after the end of the fiscal year, the head of each agency shall submit to the Director of the C)ffice of Management and Budget a report on the agency's payment practices during that fiscal year, including a description of the extent to which those practices satisfy the requirements of this chapter. "(2) In addition to such other information as may be required by the Director, the report required by paragraph (1) shall include— "(A) the number, dollar value, and percentage of invoices for which interest or other late payment penalties were paid, the amount of such late payment interest and other penalties, and the reasons the interest penalties were not avoided by prompt payment; and '(B) the number, dollar value, and percentage of invoices paid after the required payment date without payment of an interest penalty or other late payment penalty, and the reasons no obligation to pay such penalties was incurred with respect to such invoices or no amount for such penalties were included in the payments of such invoices.". IMPLEMENTATION THROUGH THE FEDERAL ACQUISITION REGULATION
SEC. 11. (a) The Federal Acquisition Regulation shall be modified to provide appropriate solicitation provisions and contract clauses that implement chapter 39 of title 31, United States Code, as amended by this Act, and the r^ulations prescribed under section 3903 of such title (as amended).
31 USC 3903 note.
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