PPD Form.pdf
PDF 99 KB Posted
- Attached to
- Rape Counseling Services
- Solicitation number
- BD-27-1098-HOC-SDS02-131871
- Issued by
- Suffolk County, Massachusetts
About this file
This is a Prompt Pay Discount Form issued by the Commonwealth of Massachusetts for vendors and contractors conducting business with the state. The form requires all contractors and vendors to provide a Prompt Payment Discount (PPD) unless they can demonstrate that doing so would create undue hardship. Contractors must specify discount percentages for payment issued within 10, 15, 20, and/or 30 days from the date goods are received and accepted or services are completed, or from the invoice receipt date, whichever is later. The Commonwealth uses the payment issue date, defined as when payment is issued via Electronic Funds Transfer (EFT) or mailed by the State Treasurer, as the measurement point rather than the date funds are received by the contractor.
The PPD program is designed to benefit both parties: contractors receive increased cash flow from accelerated payments, while the Commonwealth reduces commodity and service costs through applied discounts. Contractors who accept EFT payments receive additional benefits by avoiding check clearance delays and traditional mail lead times. Bidders retain flexibility in determining actual discount percentages but must complete the form with specific discount amounts for each payment timeframe. The Commonwealth reserves the right to use submitted discounts as a basis for selection and may negotiate terms as deemed in its best interest. Contractors unable to provide discounts must document specific hardship reasons for consideration. All discounts are tracked and verified through the Comptroller's Vendor Web system using assigned Vendor/Customer Codes.
View the file
Other files
Show all 31
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
Text version
COMMONWEALTH OF MASSACHUSETTS
Prompt Pay Discount Form (Invoice discounts for receiving fast payments)
Revised 3/9/07
Bidder Name: .
Vendor Code (VCUST): .
Contract/RFR Number(s): .
Prompt Payment Discounts (PPD). 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 Vendor Web 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 w/in
% 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 Print Name and Title: __________________________________ https://massfinance.state.ma.us/VendorWeb/vendor.asp
File details come from the government source that posted it. Updated .