31 U.S.C. § 3901 — Definitions and application

(a) In this chapter: (1) “Agency” has the section 551(1), title 5 meaning and includes an entity operated solely as an agency instrumentality to carry out an agency program when the agency head identifies it that way. (2) “Business concern” means a person conducting a trade or business or a nonprofit contractor. (3) “Proper invoice” is an invoice containing or accompanied by documentation required by Office of Management and Budget regulation and by the appropriate agency’s regulation or contract. (4) For payment deadlines and late-interest accrual, the agency head is deemed to receive an invoice on the later of actual receipt of a proper invoice by the designated first recipient or the seventh day after delivery of the property or completion of services, unless the agency accepted earlier or the contract allows a longer inspection or testing period, other than for an authorized-resale brand-name commercial product. If the designated recipient failed to mark the actual receipt date, receipt is deemed to occur on the invoice date. (5) Payment occurs on the date the check is dated or the electronic transfer is made. (6) Renting property is treated as acquiring it. (b) The chapter applies to the Tennessee Valley Authority, but its regulations do not. The Authority alone carries out the chapter for its contracts. (c) It applies to the Postal Service, whose Postmaster General issues its implementing procurement regulations, solicitation provisions, and clauses. (d)(1) Despite subsection (a)(1), it applies to the District of Columbia Courts except section 3907. (d)(2) An unpaid interest-penalty claim may be filed as claims for District of Columbia Courts property or service contracts are filed. (d)(3) An interest penalty generally stops after one year or when that claim is filed, whichever comes first. If such a claim is filed but court-contract law provides no interest, chapter interest continues from filing until payment. (d)(4) This does not stop interest allowed under District of Columbia Courts contract laws; that interest may accrue on both unpaid contract payments and the unpaid chapter penalty. (d)(5) Except section 3904, the chapter does not require a penalty for a payment withheld because the agency head and business concern dispute the amount or contract compliance. The claim and interest during resolution follow the laws governing District of Columbia Courts property or service contracts.