Term -Prompt Payment

The Prompt Payment Final Rule (formerly OMB Circular A-125, “Prompt Payment”) requires Executive departments and agencies to pay commercial obligations within certain time periods and to pay interest penalties when payments are late. On June 17, 1998, the Office of Management and Budget (OMB) requested comment on proposed revisions to the Circular. The Circular was revised to reflect the increased use of electronic commerce in the Federal government and the private sector and to reflect the requirements of the Debt Collection Improvement Act (DCIA) of 1996 . Comments were received from 21 entities, including 15 Federal agencies, five vendors, and one university. After considering the comments received, OMB issued final rule 5 CFR 1315 on September 29, 1999

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