33.208
Interest on claims
The government must pay interest on valid contractor claims from the date received until payment, using Treasury-set rates, with special rules for defective certifications.
Overview
FAR 33.208 establishes the rules for the payment of interest on contractor claims against the government. When a contractor submits a claim, the government must pay interest on any amount found due and unpaid, starting from the date the contracting officer receives the claim (if certified as required) or the date payment would otherwise be due, whichever is later. The interest rate is set by the Secretary of the Treasury and may change every six months during the claim's pendency. Special provisions apply to claims with defective certifications, specifying when interest begins to accrue. This section also references the government's right to collect interest on its own claims against contractors.
Key Rules
- Interest Accrual Start Date
- Interest begins accruing from the date the contracting officer receives the claim (certified if required) or when payment would otherwise be due, whichever is later.
- Interest Rate
- The applicable interest rate is set by the Secretary of the Treasury and may change every six months during the claim process.
- Defective Certification
- For claims with defective certifications, interest accrues from the date the claim was initially received or October 29, 1992, whichever is later, unless a proper certificate is provided earlier.
Responsibilities
- Contracting Officers: Must calculate and pay interest on valid contractor claims as specified, and track interest rate changes.
- Contractors: Must submit claims (with proper certification if required) and may be entitled to interest on unpaid amounts.
- Agencies: Ensure compliance with interest payment rules and maintain accurate records of claim receipt and payment dates.
Practical Implications
- This section ensures contractors are compensated for delayed payments on valid claims, incentivizing timely government action.
- Contractors should ensure claims are properly certified to avoid delays in interest accrual.
- Failure to comply can result in additional costs to the government and disputes over interest calculations.