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Contrasting CBCA and COFC Decisions Illustrate What 'Disputes' Will Toll the Accrual of Prompt Payment Act Interest

05 May 2009

Federal Contracts Report
In recent decisions, the Civilian Board of Contract Appeals and U.S. Court of Federal Claims both analyzed the scope of the Prompt Payment Act’s, 31 U.S.C. §§ 3901-3907 (2006), ‘‘dispute’’ exception. Delta Air Lines, Inc. v. General Services Admin., CBCA No. 1306, 09-1 BCA ¶ 34,052 (Jan. 23, 2009); PCL Constr. Servs., Inc. v. United States, 84 Fed. Cl. 60 (2008). Although the forums reached different outcomes, the opinions are consistent with each other and provide guidance on when the United States government is required to include an interest penalty on funds paid after the designated payment date.


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