Attachment B- Prompt Pay Discount Form- REQUIRED with Submission.pdf
PDF 262 KB Posted
- Attached to
- MDAR FY27 Departmental RFR- Conference Services
- Solicitation number
- BD-26-1002-1003-001-129256
- Issued by
- Massachusetts
About this file
This is a Prompt Pay Discount Form required for submission to the Massachusetts Office of the Comptroller as part of the MDAR FY27 Departmental RFR for Conference Services. All contractors and vendors doing business with the Commonwealth of Massachusetts must provide a Prompt Payment Discount (PPD) unless they can demonstrate that doing so would be unduly burdensome. The form requires bidders to specify discount percentages off the proposed price for payment issuance within 10, 15, 20, and/or 30 days. Payment days are measured from the later of either the date goods are received and accepted or services are completed, or the date an invoice is received by the Commonwealth, to the date payment is issued via Electronic Funds Transfer (preferred) or mailed by the State Treasurer.
Contractors who accept Electronic Funds Transfer maximize prompt pay benefits by ensuring funds are deposited directly to designated bank accounts, eliminating check clearance and mail delays. The Commonwealth may use the submitted PPD discounts as a basis for selection and may negotiate discounts as deemed in its best interest. Bidders have flexibility in determining actual discount percentages but must complete all required fields. For example, typical discount structures include 5 percent for 10 days, 4 percent for 15 days, 3 percent for 20 days, and 2 percent for 30 days. If a contractor cannot offer a prompt payment discount due to hardship, they must clearly define and justify the specific reasons, as volume discounts or other pricing discounts do not qualify as valid hardship justifications. The form requires the contractor's authorized signature, name, title, vendor code, and contract/RFR number(s).
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Text version
OFFICE OF THE COMPTROLLER
PROMPT PAY DISCOUNT FORM REQUIRED WITH SUBMISSION
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% and complete hardship field.
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 mailto:CTR-HR@mass.gov https://massfinance.state.ma.us/VendorWeb/vendor.asp robert.monahan Cross-Out
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| Vendor Code (VCUST): |
| Contract/RFR Numbers: |
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| Contractor/Bidder Authorized Signatory Name: |
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