Government's Right to Prompt Payment Discount On Payments Involving Bankrupt Contractor

A company requested reimbursement of prompt payment discounts taken by the agency in contract payments withheld when the Government received notice of bankruptcy proceedings on the company prior to billings. The Government was entitled to the discounts since failure to make payments to the contractor within the discount period was solely attributable to the contractor's bankruptcy proceedings, and payment was made promptly upon receipt of notice of the appointment of a receiver for the bankrupt contractor.