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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: December 30, 2003

SUBJECT: Renegotiation Board Interest Rate, Prompt Payment Interest Rate, Contract Disputes Act

SOURCE: Federal Register, December 30, 2003, Vol. 68, No. 249, page 75317

AGENCIES: Department of the Treasury, Fiscal Service, Bureau of Public Debt

ACTION: Notice

SYNOPSIS: The Secretary of the Treasury has determined that the interest rate computed under the criteria established by the Renegotiation Act of 1971 is 4.0% for the period beginning January 1, 2004, and ending June 30, 2004.

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: January 1, 2004, through June 30, 2004.

ADDRESSES: Comments or inquiries may be mailed to Crystal Hanna, Team Leader, Borrowings Accounting Team, Office of Public Debt Accounting, Bureau of the Public Debt, Parkersburg, WV 26106-1328.

FOR FURTHER INFORMATION CONTACT: Stephanie Brown, Manager, Division of Accounting Operations, Office of Public Debt Accounting, Bureau of the Public Debt, Parkersburg, WV 26106-1328, 304-480-5181; Crystal Hanna, Team Leader, Borrowings Accounting Team, Office of Public Debt Accounting, Bureau of the Public Debt, 304-480-5139; 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 July 1, 2003, through December 31, 2003, was 3 1/8% (3.125%). The interest rate for January 1, 2003, through June 30, 2003, was 4 1/4% (4.25%).

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2003 by Panoptic Enterprises. All Rights Reserved.

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