Prompt Payment

Regulations & Guidance

Final Rule
5 CFR 1315: Prompt Payment; Formerly OMB Circular A-125

Federal Register: September 29, 1999 (Volume 64, Number 188) Rules and Regulations
Page 52579-52594 from the "Federal Register Online" via GPO Access

Summary: The Prompt Payment Final Rule (formerly OMB Circular A-125, "Prompt Payment") requires Executive departments and agencies to pay commercial obligations within certain time periods and to pay interest penalties when payments are late. On June 17, 1998, the Office of Management and Budget (OMB) requested comment on proposed revisions to the Circular. The Circular was revised to reflect the increased use of electronic commerce in the Federal government and the private sector and to reflect the requirements of the Debt Collection Improvement Act (DCIA) of 1996 . Comments were received from 21 entities, including 15 Federal agencies, five vendors, and one university. After considering the comments received, OMB issued final rule 5 CFR 1315 on September 29, 1999.

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More Information:

Related Regulations:

  • Federal Travel Regulation; Final Rule: (April 21, 2000)PDF File
    This final rule provides for late payment interest penalties for Federal government employee travel reimbursements.
  • FAR EFT Final Rule: (3/4/99); published by DoD, GSA, and NASA
    The Federal Acquisition Regulation (FAR) Electronic Funds Transfer (EFT) final rule addresses the use of electronic funds transfer for federal contract payments and provides for the collection of banking information from vendors.
  • Current FAR Prompt Payment Clause: see 52.232-25 Exit FMS Web Site

   Last Updated:  March 14, 2014