PUBLIC LAW 100-496—OCT. 17, 1988
102 STAT. 2459
"(B) a certification by the prime contractor, to the best of the contractor's knowledge and belief, that— "(i) the amounts requested are only for performance in accordance with the specifications, terms, and conditions of the contract; "(ii) payments to subcontractors and suppliers have been made from previous payments received under the contract, and timely payments will be made from the proceeds of the payment covered by the certification, in accordance with their subcontract agreements and the requirements of this chapter; and "(iii) the application does not include any amounts which the prime contractor intends to withhold or retain from a subcontractor or supplier in accordance with the terms and conditions of their subcontract. "(2) The agency shall return any such payment request which is defective to the contractor within 7 days after receipt, with a statement identifying the defect. "(c)(1) The contracting officer shall— "(A) compute the interest which a contractor shall be obligated to pay under sections 3905(a)(2) and 3905(e)(6) of this title on the basis of the average bond equivalent rates of 91-day Treasury bills auctioned at the most recent auction of such bills prior to the date the contractor received the unearned amount; and "(B) deduct the interest amount determined under subparagraph (A) of this paragraph from the next available payment to the contractor. "(2) Amounts deducted from payments to contractors under paragraph (I)(B) shall revert to the Treasury.". ADDITIONAL REQUIREMENTS OF REGULATIONS
SEC. 7. Section 3903(a) of title 31, United States Code, is further amended by striking out paragraph (7), as redesignated by section 5, and inserting the following: "(7) require that— "(A) each invoice be reviewed as soon as practicable after receipt for the purpose of determining that such an invoice is a proper invoice within the meaning of section 3901(a)(3) of this title; "(B) any invoice determined not to be such a proper invoice suitable for payment shall be returned as soon sis practicable, but not later than 7 days, after receipt, specifying the reasons that the invoice is not a proper invoice; and "(C) the number of days available to an agency to make a timely payment of an invoice without incurring an interest penalty shall be reduced by the number of days by which an agency exceeds the requirements of subparagraph (B) of this paragraph; "(8) permit an agency to make payment up to 7 days prior to the required payment date, or earlier as determined by the agency to be necessary on a case-by-case basis; and "(9) prescribe the methods for computing interest under section 3903(c) of this title.".