NIGP 94948: Penalty on Late Payment to Vendor

NIGP 94948 Penalty On Late Payment To Vendor is an Item code that addresses financial penalties assessed by state and local governments when they fail to pay vendors within contractually required timeframes. The code captures late-payment interest, administrative fees, and other remedial charges that vendors can claim against procurement entities for untimely payment — a mechanism that incentivizes timely disbursement and protects vendor cash flow in public procurement. State and local governments use this code to budget for and track penalty obligations arising from payment delays, including interest accrual under prompt-payment statutes and local ordinances that impose financial consequences on late invoices. The code applies across issuing bodies — state departments, counties, cities, school districts, transit authorities, and special-purpose districts — wherever procurement entities incur contractual penalties for delinquent payment.

The source provided contains no recent state and local contract opportunities under this code. NIGP 94948 functions primarily as a budget and accounting classification rather than a solicitation vehicle; governments do not issue RFPs, RFQs, IFBs, or ITBs to procure penalties themselves. Activity under the code reflects payment-performance compliance and accrual tracking within existing contracts rather than open market procurement.