Page:United States Statutes at Large Volume 102 Part 3.djvu/504

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PUBLIC LAW 100-000—MMMM. DD, 1988

102 STAT. 2456

PUBLIC LAW 100-496—OCT. 17, 1988

"(c) This chapter, except section 3906 of this title, applies to the United States Postal Service. However, the Postmaster General shall be responsible for issuing the implementing procurement regulations, solicitation provisions, and contract clauses for the United States Postal Service.". (2) Section 410(b) of title 39, United States Code, is amended by inserting after paragraph (8) the following new paragraph: "(9) Chapter 39 of title 31.". INTEREST PENALTIES: ELIMINATION OF GRACE PERIODS; INCREASED PENALTIES; OBLIGATION TO PAY PENALTIES Federal Register, publication.

Business and industry.

SEC. 3. (a)(1) Section 3902(a) of title 31, United States Code, is amended by striking the second and third sentences thereof and inserting the following: "The interest shall be computed at the rate of interest established by the Secretary of the Treasury, and published in the Federal Register, for interest payments under section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611), which is in effect at the time the agency accrues the obligation to pay a late payment interest penalty.". (2) Section 3902(b) of title 31, United States Code, is amended by striking out the second sentence. (b) Section 3902 of such title is further amended by redesignating subsections (c) through (e) as subsections (e) through (g), respectively, and by inserting after subsection (b) the following new subsections (c) and (d): "(c)(1) A business concern shall be entitled to an interest penalty of $1.00 or more which is owed such business concern under this section, and such penalty shall be paid without regard to whether the business concern has requested payment of such penalty. "(2) Each payment subject to this chapter for which a late payment interest penalty is required to be paid shall be accompanied by a notice stating the amount of the interest penalty included in such payment and the rate by which, and period for which, such penalty was computed. "(3) If a business concern— "(A) is owed an interest penalty by an agency; "(B) is not paid the interest penalty in a payment made to the business concern by the agency on or after the date on which the interest penalty becomes due; "(C) is not paid the interest penalty by the agency within 10 days after the date on which such payment is made; and "(D) makes a written demand, not later than 40 days after the date on which such payment is made, that the agency pay such a penalty, such business concern shall be entitled to an amount equal to the sum of the late payment interest penalty to which the contractor is entitled and an additional penalty equal to a percentage of such late payment interest penalty specified by regulation by the Director of the Office of Management and Budget, subject to such maximum as may be specified in such regulations. "(d) The temporary unavailability of funds to make a timely payment due for property or services does not relieve the head of an agency from the obligation to pay interest penalties under this section.".