Prompt payment act (Public law 97-177): current implementation initiatives and alternatives.

Abstract

Government agencies are required by Public Law 97-177 to pay interest penalty payments to vendors for all bills not paid by a specified due date. The purpose of this study was to investigate the implementation procedures developed by the U.S. Air Force, U.S. Army, and U.S. Navy to comply with Public Law 97-177. The investigation was intended to develop alternative procedures for use in the U.S. Navy that would minimize the impact on operating funds of the Navy. This was accomplished through literature and document research and on site visits to Navy bill paying agencies. The conclusion is that improvements can be made in the Navy's current procedures. Recommendations for changes in the current system include holding claimants and/or subclaimants responsible for subordinate command performance through negotiation of goals and for maturing the current system into one of permanency which will provide incentives for adherence to the goal of timely payment of bills.