FAR 52.232-8 - Discounts for Prompt Payment

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Prescribed in 32.111(b)(1)
Effective Date:	1 February 2002
Clause or Provision:	Clause
Provision or Clause Number:	52.232-8 - Discounts for Prompt Payment
Principle Type And/Or Purpose of Contract:
Required:
Applicable:	Time and Materials/Labor Hour; Fixed Price, Supply; Leasing of Motor Vehicles; Time & Material/Labor Hour; Fixed Price, Service; Simplified Acquisition Procedures (Excludes Micro-Purchase)
Optional:	Utility Services; Facilities; Indefinite Delivery; Dismantling, Demolition or Removal of Improvements; Fixed Price, Construction; Cost Reimbursement, Construction; Cost Reimbursement, Supply; Cost Reimbursement, Service
Subject:	Invoices and Payments
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription (b) The contracting officer shall insert the following clauses, appropriately modified with respect to payment due dates in accordance with agency regulations: (1) The clause at 52.232-8, Discounts for Prompt Payment, in solicitations and contracts when a fixed-price supply contract or fixed-price service contract is contemplated.
Clause Overview:	Clause (a) Discounts for prompt payment will not be considered in the evaluation of offers. However, any offered discount will form a part of the award, and will be taken if payment is made within the discount period indicated in the offer by the offeror. As an alternative to offering a discount for prompt payment in conjunction with the offer, offerors awarded contracts may include discounts for prompt payment on individual invoices. (b) In connection with any discount offered for prompt payment, time shall be computed from the date of the invoice. If the Contractor has not placed a date on the invoice, the due date shall be calculated from the date the designated billing office receives a proper invoice, provided the agency annotates such invoice with the date of receipt at the time of receipt. For the purpose of computing the discount earned, payment shall be considered to have been made on the date that appears on the payment check or, for an electronic funds transfer, the specified payment date. When the discount date falls on a Saturday, Sunday, or legal holiday when Federal Government offices are closed and Government business is not expected to be conducted, payment may be made on the following business day.
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:	I
Editor:	Marshall

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Personal notes.