8_Prompt Payment Discount Form~1.pdf
PDF 672 KB Posted
- Attached to
- DMF Center Console Research Vessel Purchase
- Solicitation number
- BD-27-1046-DMF-FWE20-133878
- Issued by
- Essex County, Massachusetts
About this file
This is a Prompt Payment Discount Form issued by the Office of the Comptroller for the Commonwealth of Massachusetts. The form applies to all contractors and vendors conducting business with the Commonwealth who must provide early payment discounts unless they can demonstrate undue burden. The form requires contractors to specify discount percentages applicable to payment issue dates of 10, 15, 20, and 30 days from the later of either goods receipt and acceptance or invoice receipt by the Commonwealth. Contractors who accept Electronic Funds Transfer (EFT) as their payment method receive enhanced cash flow benefits. The Commonwealth may use submitted discounts as a basis for contract selection and reserves the right to negotiate discount terms as deemed in its best interest.
The Prompt Payment Discount program is designed to reduce costs for Commonwealth procurements while providing contractors with improved cash flow through expedited payments. Contractors maintain flexibility in determining actual discount percentages but must identify specific discounts for each payment timeline. The Commonwealth may waive the PPD requirement on a case-by-case basis only when participation would create undue hardship, with contractors required to document specific reasons for such hardship. Payments are tracked through the MMARS state accounting system and verified via the Comptroller's VendorWeb system using assigned Vendor Customer Codes. Contractors unable to comply must clearly define hardship issues on the form or attached documentation for review by the procurement management team.
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Text version
OFFICE OF THE COMPTROLLER
PROMPT PAY DISCOUNT FORM
info.comptroller@mass.gov
Contractor/Bidder Name
Vendor Code (VCUST)
Contract/RFR Number(s)
All contractors/vendors doing business with the Commonwealth must provide a Prompt Payment Discount (PPD) for receiving early payments unless the Contractor/vendor can provide compelling proof that providing a prompt pay discount would be unduly burdensome. Contractors benefit from PPD by increased, usable cash flow as a result of fast and efficient payments for commodities or services rendered. Contractors who agree to accept Electronic Funds Transfer (EFT) increase the prompt pay benefit by ensuring that funds are paid directly to their designated bank accounts, thus eliminating the delay of check clearance policies and traditional mail lead time. Payments processed through the state accounting system (MMARS) can be tracked and verified through the Comptroller’s VendorWeb system using the Vendor/Customer Code assigned to you by a Commonwealth department.
The Commonwealth benefits because contractors reduce the cost of products and services through the applied discount. While Bidders/Contractors have flexibility in determining the actual % discount(s) offered to the Commonwealth, the discount(s) must be identified for 10, 15, 20 and/or 30 days for payment issuance in the column entitled “% Discount Off Proposed Price” below.
The Commonwealth may use the prompt pay discounts submitted as a basis for selection and may negotiate discounts as deemed in the best interest of the Commonwealth. The requirement to offer PPD discounts may be waived by the Commonwealth on a case-by-case basis if participation in the program would be unduly burdensome, provided the specific reason for the hardship is outlined below.
All discounts offered will be taken in cases where the payment issue date is within the specified number of days listed below and in accordance with the Commonwealth’s Bill Paying Policy. Payment days will be measured from the date goods are received and accepted / performance was completed OR the date an invoice is received by the Commonwealth, whichever is later to the date the payment is issued as an EFT (preferred method) or mailed by the State Treasurer. The date of payment “issue” is the date a payment is considered “paid” not the date a payment is “received” by a Contractor.
If internal Bidder/Contractor systems require an alternate method of measuring payment issue dates, the Bidder/Contractor must note the issues below or on an attached page if necessary to be considered by the PMT. In cases where the Bidder/Contractor considers that offering a Prompt Payment Discount would be a hardship, the Bidder must clearly define the issues and reasons for said hardship. Providing volume discounts or other discounts on prices is not considered a hardship, since the PPD provides the additional benefit of early cash flow for the Contractor.
Enter the Prompt Payment Discount percentage (%) off the invoice payment, for each of the payment issue dates listed, if the payment is issued within the specified Payment Issue days. For example:
5% - 10 Days 4% - 15 Days 3% - 20 Days 2% - 30 Days
If no discount is offered enter 0% Prompt Payment Discount % Payment issue date within
% 10 Days % 15 Days % 20 Days % 30 Days
The Contractor is unable to provide a prompt payment discount due to the following hardship
Contractor/Bidder Authorized Signature Date
Contractor/Bidder Authorized Signatory Name Title
EXAMPLE
mailto:CTR-HR@mass.gov https://massfinance.state.ma.us/VendorWeb/vendor.asp
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