What happens if the government doesn't pay an invoice?

Federal payment is generally reliable, but delays can occur. Here's how the system protects contractors: **Prompt Payment Act protections:** - Government must pay within 30 days of proper invoice receipt - Interest accrues automatically on late payments - Current interest rate published by Treasury - Interest paid without contractor request - Applies to most contract types **If payment is delayed:** 1. Verify invoice was properly submitted and received 2. Contact contracting officer or finance office 3. Request status and expected payment date 4. Document all communications 5. Interest accrues automatically for qualifying delays **Common delay reasons (and solutions):** - Invoice errors: Correct and resubmit - Missing documentation: Provide required backup - Receiving report not completed: Follow up with COR - Budget issues: May need to wait for funding - System problems: Escalate through contracting officer **If payment is wrongfully withheld:** - Attempt informal resolution first - Submit formal claim under Contract Disputes Act - Interest continues to accrue - May pursue through boards of contract appeals or court - Legal fees may be recoverable in some cases **Practical considerations:** - Outright non-payment is rare with federal government - Disputes about amounts more common than total non-payment - Government solvency is not a concern - Bureaucratic delays are more common than intentional withholding **Protecting yourself:** - Submit complete, accurate invoices - Follow contract invoicing requirements exactly - Maintain documentation of deliverables - Address issues immediately when raised