H.R. 3494, THE DELINQUENT PAYMENTS ACT OF 1981
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP85-00988R000400170008-3
Release Decision:
RIPPUB
Original Classification:
K
Document Page Count:
1
Document Creation Date:
December 15, 2016
Document Release Date:
September 16, 2003
Sequence Number:
8
Case Number:
Publication Date:
June 26, 1981
Content Type:
MF
File:
Attachment | Size |
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Body:
Approved For Release 2003/11/06 : CIA-RDP85-00988R0004001Z00Q,> 1981
MEMORANDUM FOR: Chief, Plans and Programs Staff
STAT FROM:
Chief, Procurement Management Staff
SUBJECT: H.R. 3494, The Delinquent Payments Act of 1981
REFERENCE: Multiple Addressee memo dtd 9 June 1981,
same subject (OLC 81-0256/7
1. H.R. 3494 is a rehash of legislative proposals that have
been stirring around for several years now. The primary thrust
of many of the prior proposals to require payment of interest on
delinquent payments has been to afford such penalty payments
to small business concerns. It now appears that lobby groups
are pushing for such penalty payments on all delinquent accounts
whether they involve small or large businesses.
2. We see great expense to the Government if such proposed
legislation is enacted into law. The cost will occur, of course,
from the additional funds that are required to pay interest on
delinquent accounts, but in my opinion this item of cost will be
small compared to the cost which will result from the necessity
to employ additional personnel to administer contracts and payments
under contracts. Almost certain to develop will be the serious
questions about the causes for the delinquency in payment. Such
questions are whether the contractor's invoice was received on a
timely basis, whether the contractor's invoice was accurate in
all respects, or whether the goods have been received and moreover
received in satisfactory condition, and whether the terms of the
contract applicable to payment were clear to both parties. Another
problem area that I envision in the payment of interest on delinquent
accounts is the whole area of settlement. This is an area where
hundreds of contracts on such work has been completed, but on which
final payment has not been made. This delay in the final payment
can result from a number of factors, such as settlement of overhead
amounts, clearance of property accounts, and filing of patents and
other certifications.
3. The moving force behind the proposed legislation is, of
course, the various lobby groups representing special interest
and the high cost of money which is increasing the contractor's
operating expense. I believe that the Federal Government should
make a maximum effort to pay its contractors on time, but that
we should as an Agency continue to go on record as being opposed
to the payment of interest on delinquent accounts. The possible
results of such legislation in terms of additional manpower require-
ments and resulting costs are too great to take other than a
negative position.
cc: D/L
Approved For Release 2003/11/06 : CIA-RDP85-00988R000400170008-3