Section 4-06 of the Procurement Policy Rules requires City agencies to process contract payments efficiently and expeditiously so as to assure timely contract payments to those suppliers doing business with the City.
The Rule further requires that when payments are made after the Required Payment Date ("RPD"), interest, unless otherwise specified in the Rules, must be paid to the supplier.
The Comptroller and the Office of Management and Budget (OMB) have jointly set the new Prompt Payment Interest Rate. The new Prompt Payment Interest Rate is 2.625% effective on payments for the six month period January 1, 2018 – June 30, 2018.
January 1, 2018 - June 30, 2018 2.625%
In Fiscal 2016, the net interest paid by Mayoral agencies citywide totaled $32,836.46