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ASBCA Clarifies SOL on Interest Claims Under the Prompt Payment Act

Client Alert | 1 min read | 05.23.16

In Public Warehousing Co. (May 2, 2016), the Board held the CDA statute of limitations on a contractor’s claim for interest penalties under the Prompt Payment Act does not accrue until the government makes the underlying payment. Rejecting the government’s argument that the interest claim should accrue as soon as government fails to make the underlying payment, the Board held that, under the PPA, “the events that fix the government's alleged liability and allow a claim for interest penalties to be asserted do not occur until the government pays the underlying invoice without paying the interest penalty due.”

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Client Alert | 1 min read | 04.18.24

GSA Clarifies Permissibility of Upfront Payments for Software-as-a-Service Offerings

On March 15, 2024, the General Services Administration (GSA) issued Acquisition Letter MV-2024-01 providing guidance to GSA contracting officers on the use of upfront payments for acquisitions of cloud-based Software-as-a-Service (SaaS).  Specifically, this acquisition letter clarifies that despite statutory prohibitions against the use of “advance” payments outside of narrowly-prescribed circumstances, upfront payments for SaaS licenses do not constitute an “advance” payment subject to these restrictions when made under the following conditions:...