Title 31 › Subtitle SUBTITLE III— FINANCIAL MANAGEMENT › Chapter 39— PROMPT PAYMENT › § 3901
Sets rules for government contract payments, invoices, and some special agency rules. It defines a few key words: "agency" means the same thing as in federal law and can include an entity run as part of that agency; "business concern" means a company doing business or a nonprofit contractor; "proper invoice" means an invoice with the supporting paperwork that the Office of Management and Budget or the agency requires; an invoice is treated as received on the later of the day the agency’s invoice office actually gets a proper invoice or the 7th day after the goods were delivered or services finished (unless the agency accepted them earlier or the contract allows more time to inspect); if the agency fails to mark the receipt date, the invoice date counts; a payment counts as made on the date a check is dated or an electronic fund transfer is sent; a rental contract is treated like an acquisition of property. The rules apply to the Tennessee Valley Authority, but TVA must run the rules itself and is not covered by the chapter’s regulations. The rules apply to the United States Postal Service, but the Postmaster General must issue the Postal Service’s procurement rules. The rules mostly apply to the District of Columbia Courts (except one section named 3907). Interest-penalty claims for late payment follow the same claims process as other D.C. Court contract claims. Generally, interest penalties do not run for more than one year or after a claim is filed, whichever is earlier, though special D.C. rules can change how interest is calculated or when it continues to run. If payment is withheld because the agency and contractor are disputing the amount or contract compliance, the chapter does not require an interest penalty and the dispute is handled under the D.C. Courts’ contract-claim rules (subject to a related exception in section 3904).
Full Legal Text
Money and Finance — Source: USLM XML via OLRC
Legislative History
Reference
Citation
31 U.S.C. § 3901
Title 31 — Money and Finance
Last Updated
Apr 5, 2026
Release point: 119-73not60