Late Payment Assistance for Small Businesses

The HHS Office of Small and Disadvantaged Business Utilization (OSDBU) is available to assist small businesses with resolving invoicing concerns.

Before Reporting Payment Issues

Before reporting payment issues to OSDBU, please confirm that a proper invoice was submitted. A proper invoice includes the following items (except for interim payments on cost-reimbursement contracts for services):

1. Name and address of the contractor.
2. Invoice date and invoice number.
3. Contract number (including the order number and line-item number).
4. Requisition Number.
5. Shipping and payment terms.
6. Name and address of contractor official to whom payment is to be sent.
7. Name, title, phone number, and mailing address of the person to notify in the event of a defective invoice.
8. Taxpayer Identification Number (TIN).
9. Electronic funds transfer (EFT) banking information.
10. Any other information or documentation required by the contract.

See FAR 32.905, Payment documentation and process for more information on proper invoices.

Reporting Payment Issues

If you have verified that you submitted a proper invoice and would like to report a past due payment issue, please send an email to sbmail@hhs.gov with the following:

1. The name and contact information of the Contracting Officer.
2. The HHS operating or staff division (e.g., NIH, FDA, CMS) with whom you have the contract.
3. The contract number.
4. Your business’ name.
5. Your contact information.

OSDBU will contact the contracting officer to determine the cause of non-payment. OSDBU will work with you directly to resolve any issues.

Late Payment Interest Penalties

The government has an obligation to pay every proper invoice within 30 days of its receipt. If an agency fails to make payment within this time, the agency is liable for interest on the delinquent payment. See 31 U.S.C. 39 for more information on Prompt Payment.

Interest penalties are paid automatically, without request from the contractor, when all the following conditions are met:

1. The designated billing office received a proper invoice.
2. The government processed a receiving report or other government documentation authorizing payment.
3. In the case of a final invoice, the payment amount is not subject to further contract settlement actions between the government and the contractor.
4. The designated payment office paid the contractor after the due date.
5. In the case of interim payments on cost-reimbursement contracts for services when payment is made more than 30 days (about 4 1/2 weeks) after the designated billing office receives a "proper invoice".

See FAR 32.907, Interest Penalties for more information on interest payments.