§3507 Interest and Penalties for Certain Overpayments

Summary

If the federal government pays a contractor too much because the contractor gave bad cost or pricing data, the contractor must pay interest on the overpaid amount. The interest runs from the date the overpayment was made until the day the contractor repays it, and it uses 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 knew the data was defective when it was submitted, the contractor must also pay an extra amount equal to the overpayment. If a contractor provides cost or pricing data but refuses to give the required certification for that data, that refusal does not reduce or remove the contractor’s obligation to repay the overpayment and any interest or penalties.