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NASA Ball NASA
Procedural
Requirements
NPR 9630.1
Effective Date: July 10, 2017
Expiration Date: November 10, 2022
COMPLIANCE IS MANDATORY FOR NASA EMPLOYEES
Printable Format (PDF)

Subject: Accounts Payable and Disbursements

Responsible Office: Office of the Chief Financial Officer


| TOC | Preface | Chapter1 | Chapter2 | Chapter3 | Chapter4 | Chapter5 | Chapter6 | Chapter7 | Chapter8 | Chapter9 | Chapter10 | Chapter11 | Chapter12 | Chapter13 | AppendixA | AppendixB | AppendixC | ALL |

Chapter 9 Payments under Construction Contracts

9.1 Payments Standards

9.1.1 NASA should follow these standards when making progress payments under construction contracts:

a. NASA may approve a request for progress payment if the application meets the requirements specified in Section 9.2, Required Documentation for Construction Payments, below.

b. The certification by the prime vendor, as defined in Section 9.2 below, is not to be construed as final acceptance of the subcontractor's performance.

9.1.2 NASA shall return any such payment request that is defective to the vendor within seven days after receipt, with a statement identifying the defect(s).

9.1.3 In the event the vendor's progress payment request contains an error and the vendor is paid more than entitled to under the terms of the contract, the vendor is obligated to pay interest to NASA on unearned amounts in its possession. The same holds true if NASA should mistakenly pay the vendor more than was authorized by the contract at the time of the payment. A vendor or subcontractor is obligated to pay interest to NASA on unearned amounts in its possession from:

a. The eighth day after receipt of funds from NASA until the date the vendor notifies NASA that the performance deficiency of the vendor has been corrected.

b. The eighth day after the receipt of funds from NASA until date the vendor reduces the amount of any subsequent payment request by an amount equal to the unearned amount in its possession when all or a portion of a payment received from NASA constitutes a payment for the vendor's performance that fails to conform to the specifications, terms, and conditions of its contract with the Agency, under 31 U.S.C. § 3905(a).

c. The eighth day after the receipt of funds from NASA until the date the performance deficiency of a subcontractor is corrected.

d. The eighth day after the receipt of funds from NASA until the date the vendor reduces the amount of any subsequent payment request by an amount equal to the unearned amount in its possession, when all or a portion of a payment received from the agency would constitute a payment for the subcontractor's performance that fails to conform to the subcontract agreement and may be withheld, under 31 U.S.C. § 3905(e).

9.1.4 Interest payments on unearned amounts due to the Government under 31 U.S.C. § 3905(a)(2) or § 3905(e)(6) should:

a. Be computed on the basis of the average bond equivalent rates of 91-day Treasury bills auctioned at the most recent auction of such bills prior to the date the vendor received the unearned amount.

b. Be deducted from the next available payment to the vendor.

c. Be deposited in the Miscellaneous Receipts Account and then revert to Treasury.

9.2 Required Documentation for Construction Payments

9.2.1 Substantiation required for construction payments shall include:

a. An itemization of the amounts requested related to the various elements of work specified in the contract.

b. A listing of the amount included for work performed by each subcontractor under the contract.

c. A listing of the total amount for each subcontract under the contract.

d. A listing of the amounts previously paid to each subcontractor under the contract.

e. Additional supporting data and detail in a form required by the contracting officer.

f. Certification by the prime vendor to the best of the vendor's knowledge and belief that:

(1) The amounts requested are only for performance in accordance with the specifications, terms, and conditions of the contract.

(2) Payments to subcontractors and suppliers have been made from previous payments received under the contract, and timely payments will be made from the proceeds of the payment covered by the certification, in accordance with their subcontract agreements and the requirements of 31 U.S.C. Subtitle III, Chapter 39.

(3) The application does not include any amounts which the prime vendor intends to withhold or retain from a subcontractor or supplier, in accordance with the terms and conditions of their subcontract.



| TOC | Preface | Chapter1 | Chapter2 | Chapter3 | Chapter4 | Chapter5 | Chapter6 | Chapter7 | Chapter8 | Chapter9 | Chapter10 | Chapter11 | Chapter12 | Chapter13 | AppendixA | AppendixB | AppendixC | ALL |
 
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