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![handle is hein.gao/gaobadxur0001 and id is 1 raw text is:
DOCUMENT RESUME
02632 - [A1812837]
Payments to Contractors by the Government. June 21, 1977. 18 pp.
+ enclosure (2 pp.).
Testimony before the Senate Select Committee on Small Business;
by D. L. Scantlebury, Director, Financial and General Management
Studies Div.
Issue Area: Federal Procurement of Goods and Services (1900).
Contact: Financial and General Management Studies Div.
Budget Zunction: General Government: Other General $overnment
(806) ; Gensral Government: General Property and Records
Management (804).
Congressional Relevance: Senate Select Committee on Small
Business.
Authority: 31 U.S.C. 529. 10 U.S.C. 2307. 41 U.S.C. 255.
Provisions governing Federal payments for purchases
have been establisled by legislation and r egulations. Based on a
GAO survey, it was found that 73% of firms considered Federal
paywpnt performance satisfactory, and 16% found .Lt
unsatisfactory. An analysis relating to vendor invoices revealed
that basic causes of late payments were lack of consistent
Federal criteria for determining when payment is due, and
untimely processing of recuired documents before payment. Some
examples of late payment resulted from untimely actions of
contractors. Differences among ac .ties in payment performance
were determined by rev3ewing invc.±ces, with findings of late
payment rates varying from 3% for a Department -f Justice
payment center and 74% for two General Service Administration
payments centers. Some examDles were also found of payments made
too early. Methods for improving payment timeliness have been
considered, and GAO is still assessing suggestions for interest
charges on late payments. (HTW)](ViewImageLocal?handle=hein.gao/gaobadxur0001&div=1&collection=&method=preview&ext=.png&size=3)