§3507 Interest and penalties for certain overpayments

Summary

If the federal government pays a contractor too much because the contractor gave defective cost or pricing data under a contract with an executive agency covered by this law, the contractor must pay interest on the overpaid amount from the date it was paid until it is repaid. The interest rate is the current rate set by the Secretary of the Treasury under section 6621 of the Internal Revenue Code of 1986 (26 U.S.C. 6621). If the contractor knowingly gave the defective data, it must also pay an extra amount equal to the overpayment. Refusing to provide the certification required by section 3502(b) does not remove or reduce the contractor’s responsibility to pay these amounts.