Statement of Administration Policy: S. 328 - Prompt Payment Act Amendments of 1987

(Senate)
(Sasser (D) Tennessee and 86 others)

The administration supports enactment of S. 328 but recommends that the bill be amended in two ways. First, the provision in section 4(b) that would require the payment of double interest penalties in certain situations should be deleted. A requirement of this nature would increase the incentive for agencies improperly to deny that penalties are due and needlessly increase the incidence of contract disputes. Second, the provision in section 7 that would require the inclusion of a payment clause in construction subcontracts should also be deleted. It is inappropriate for the Federal Government to interpose itself between prime contractors and their subcontractors in this fashion.