DATE: July 1, 2003
SUBJECT: Renegotiation Board Interest Rate, Prompt Payment Interest Rate, Contract Disputes Act
SOURCE: Federal Register, July 1, 2003, Vol. 68, No. 126, page 39185
AGENCIES: Department of the Treasury, Fiscal Service, Bureau of Public Debt
SYNOPSIS: The Secretary of the Treasury has determined that the interest rate computed under the criteria established by the Renegotiation Act of 1971 is 3 1/8% (3.125%) for the period beginning July 1, 2003, and ending December 31, 2003.
EDITOR'S NOTE: For more on prompt payment, see FAR Subpart 32.9, Prompt Payment. For more on contract disputes, see FAR Subpart 33.2, Disputes and Appeals. For more on facilities capital cost of money, see FAR 31.205-10 and Cost Accounting Standard 9904.414.
A list of Renegotiation Act rates from 1980 to the present is available on http://www.publicdebt.treas.gov/opd/opdprmt2.htm.
EFFECTIVE DATES: July 1, 2003, through December 31, 2003.
ADDRESSES: Comments or inquiries may be mailed to Eleanor Farrar, Team Leader, Debt Accounting Branch, Office of Public Debt Accounting, Bureau of the Public Debt, Parkersburg, West Virginia 26106-1328.
FOR FURTHER INFORMATION CONTACT: Frank Dunn, Manager, Debt Accounting Branch, Office of Public Debt Accounting, Bureau of the Public Debt, Parkersburg, West Virginia, 26106-1328, 304-480-5170; Eleanor Farrar, Team Leader, Borrowings Accounting Team, Office of Public Debt Accounting, Bureau of the Public Debt, 304-480-5166; Edward C. Gronseth, Deputy Chief Counsel, Office of the Chief Counsel, Bureau of the Public Debt, 304-480-8692; or Geraldine J. Porco-Hubenko, Attorney-Adviser, Office of the Chief Counsel, Bureau of the Public Debt, 202-691-3708.
SUPPLEMENTAL INFORMATION: Although the Renegotiation Board no longer exists, federal agencies are required to use the interest rates computed semiannually under the Renegotiation Act. For example, the Contracts Disputes Act of 1978 and the Prompt Payment Act provide for the calculation of interest due on claims at a rate established by the Secretary of the Treasury pursuant to the Renegotiation Act. The Renegotiation Act interest rate is also used in calculations of facilities capital cost of money.
The interest rate for January 1, 2003, through June 30, 2003, was 4 1/4% (4.25%). The interest rate for July 1, 2002, through December 31, 2002, was 5 1/4% (5.25%).
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.
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