Prompt Payment Act

[kcv]

What is the name of your state? DC

I am a Personal Services Contractor (PSC) with a US Govt Agency. Recently, I discovered that my agency had underpaid me for 2.5 years. At my request, they paid me the back pay. But they are refusing to pay the interest due under the Prompt Payment Act. They said the agency made a decision 10 or so years ago that the Prompt Payment Act does not apply to PSCs. Nowhere is this written in my contract. To date, the agency has not given me anything in writing to confirm this (they have 60 days to do so under the regs). My question is, can the agency arbitrarily decide that the Act will not apply to PSCs without mentioning it in my contract? For example, my contract DOES stipulate that I am an to be considered an employee for tax purposes and NOT an employee for anything regulated by OPM. OPM regulates the issues of back pay and interest payments on it.

Thanks very much for any enlightenment.

 

[quincy]

The Prompt Payment rule does not provide for late interest penalties for payments made to subcontractors.

You can find the answers to all your questions about the Prompt Payment Act at the government site - http://fms.treas.gov/prompt .

 

[kcv]

Thanks but I'm not a sub-contractor. I am an individual who was hired to work at my agency on a contractual basis (hence the term Personal Services Contractor [PSC]).

I have gone over the Prompt Payment websites with a fine-tooth comb but can find no mention of Personal Services Contractors. I believe it should apply to me as I am named in my agency's list of contractors with which it does business and the agency forced me to obtain a DUNS number for procurement purposes.

But my agency is telling me it decided years ago that the Prompt Payment Act would not apply to its Personal Services Contractors. Can a Government Agency make this kind of decision? So far, I have not received this information in writing.

 

[mitousmom]

But my agency is telling me it decided years ago that the Prompt Payment Act would not apply to its Personal Services Contractors. Can a Government Agency make this kind of decision? So far, I have not received this information in writing.

Obviously, it can. Whether its decision is legally binding is another matter. I suggest that you use quincy's link and ask the Treasury Department.

 

[Zigner]

Thanks but I'm not a sub-contractor. I am an individual who was hired to work at my agency on a contractual basis

Change the word "individual" to "entity" and you have the definition of a "sub-contractor"

 

[kcv]

Okay, I'm really confused now. I thought that a contractor was an individual or entity that was contracted directly by the agency to perform services for said agency.

I thought a sub-contractor was a person or entity that was contracted by the contractor to help it fulfull its obligations to the agency.

If I'm wrong, can you help me understand or direct me to some explanation?

Thanks very much again.