form_prompt-pay-discount (PPD)_Fall_2025.pdf
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- Solicitation number
- BD-27-1071-VR-VR00-131846
- Issued by
- Massachusetts
About this file
This is a Prompt Pay Discount Form from the Massachusetts Office of the Comptroller applicable to the Medical Items & Prosthetics for MassAbility Participants contract opportunity. The form establishes requirements for all contractors and vendors conducting business with the Commonwealth of Massachusetts to provide early payment discounts unless they can demonstrate that doing so would create undue hardship. Contractors are required to specify discount percentages for payment issued within 10, 15, 20, and/or 30 days 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. The Commonwealth may use submitted prompt pay discounts as a basis for contractor selection and may negotiate discount rates as deemed in its best interest.
Contractors benefit from prompt pay discounts through improved cash flow resulting from accelerated state payments, with additional benefits available to those who accept Electronic Funds Transfer (EFT) as the payment method. The form requires contractors to enter specific discount percentages for each payment timeline, with example discounts of 5% for 10-day payment, 4% for 15 days, 3% for 20 days, and 2% for 30 days. Contractors unable to participate in the prompt pay discount program must provide detailed documentation of hardship, noting that volume discounts or other pricing reductions do not qualify as justification for exemption. Payment dates are measured from invoice receipt to payment issuance via EFT or mail, with the payment issue date—not receipt date—constituting the official payment date under the Commonwealth's Bill Paying Policy.
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OFFICE OF THE COMPTROLLER
PROMPT PAY DISCOUNT FORM
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 C ontractor/vendor can pr ovide compelling pr oof that providing a prompt pay discount would be u nduly 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 Office of 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 a s 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 o n 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 info.comptroller@mass.gov mailto:CTR-HR@mass.gov https://massfinance.state.ma.us/VendorWeb/vendor.asp
| OFFICE OF THE COMPTROLLER |
| PROMPT PAY DISCOUNT FORM |
| Date: |
| Title: |
| Contractor/Bidder Name: |
| Vendor Code (VCUST): |
| Contract/RFR Numbers: |
| Comments: |
| Contractor/Bidder Authorized Signatory Name: |
| Prompt Payment Discount %_1: |
| Prompt Payment Discount %_2: |
| Prompt Payment Discount %_3: |
| Prompt Payment Discount %_4: |
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