Interpreting the Prompt Payment Act

B-211307: Aug 26, 1983

Additional Materials:


Office of Public Affairs
(202) 512-4800

A firm requested interpretation of the Prompt Payment Act. Specifically, the firm requested information on (1) the applicability of the Prompt Payment Act to specific agencies, (2) the effect of an incorrect address on a bill of lading, and (3) whether transportation payments are exempt from the Prompt Payment Act. GAO found that (1) the Government Printing Office, the United States Postal Service, and the Administrative Offices of the U.S. Courts are exempt from the act while the Smithsonian Institution may not be exempt from the act; (2) if the incorrect address listed on a bill of lading is the fault of the agency, the firm should not be held accountable for late invoices; and (3) transportation payments are not exempt from the act.