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890 INTEREST ON ADVANCE PAYMENTS IN DOL CONTRACTS AND GRANTS


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---DISCLAIMER---

891 Purpose. To state Department of Labor (DOL) policy on charging interest on advance payments made to DOL contractors and grantees.

892 Authority. This section is issued pursuant to Federal Acquisition Regulation (48 CFR Part 32.407).

893 Policy

a. Interest will be charged on the daily unliquidated balance of all advance payments at the higher of:

(1) The published prime rate of the banking institution (depository) in which the special bank account (See FAR 32.409-3) is established; or

(2) The rate established by the Secretary of the Treasury under 50 U.S.C. App. 1215(b)(2).

b. Advance payments may be made without interest under:

(1) Contracts and grants with Federal, State and local governments, and with Indian tribes on Federal and State reservations.

(2) Contracts and grants with nonprofit religious organizations, labor unions, nonprofit educational or research institutions for experimental, research, and development work, except that interest will be charged whenever provision has been made for payment of a fee to the contractor or grantee.

(3) Contracts solely for the operation and management of Government-owned plants.

894 Assignment of Responsibility. The Division of Grant and Procurement Policy, Office of Procurement and Grant Management, Directorate of Administrative and Procurement Programs, OASAM, will disseminate current Government interest rates to contracting officers and contract specialists upon publication in the Federal Register. Inquiries concerning rate changes should be addressed to this office.


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