Payment of Interest on Amounts Due Government

A firm questioned whether it should have been charged interest on an amount it owed the Government for excess reprocurement costs under a contract which was terminated for default. It contended that the government owed it an amount in excess of the assessed reprocurement costs as a result of Armed Services Board of Contract Appeals (ASBCA) decisions under other contracts covering the same time period. The firm cited regulations to support its contention. GAO held that the fact that ASBCA decisions required the government to pay the contractor under other contracts provided no basis for relieving the contractor from the requirement for payment of interest on the amount due to the government. The regulations cited by the firm were held not to apply in this case. Accordingly, the request for relief was denied.