Prompt Pay Discount - PPD Form.docx
DOCX document 44 KB Posted
- Solicitation number
- BD-27-1026-DOE02-DOE01-130975
- Issued by
- Essex County, Massachusetts
About this file
This is a Prompt Pay Discount Form issued by the Office of the Comptroller of the Commonwealth of Massachusetts, applicable to the contract opportunity for Comprehensive Support for IDEA Part B SPP/APR (RFR 27SEPGT1). The form requires all contractors and vendors doing business with the Commonwealth to provide a Prompt Payment Discount (PPD) unless they can demonstrate that doing so would be unduly burdensome. Contractors must specify discount percentages for payment issue dates of 10, 15, 20, and 30 days, with discounts calculated as a percentage off the proposed invoice price. The Commonwealth measures payment days from the later of either the date goods are received and accepted or services are completed, or the date an invoice is received, to the date payment is issued via Electronic Funds Transfer (preferred) or mailed by the State Treasurer. The form allows contractors flexibility in determining actual discount percentages, though the Commonwealth reserves the right to use these discounts as a basis for selection and may negotiate discounts in its best interest.
Contractors who accept Electronic Funds Transfer enhance the prompt pay benefit by ensuring direct deposit to designated bank accounts, thereby improving cash flow by eliminating check clearance delays and mail lead time. The Commonwealth benefits from PPD by reducing the cost of products and services through applied discounts. Contractors unable to provide a prompt payment discount must clearly document and explain the specific hardship on the form. Volume discounts or other pricing reductions are not considered valid hardship justifications, as PPD provides the additional benefit of accelerated cash flow. All contractors must complete and submit the form with their bid response, including authorized signature, date, signatory name, and title.
View the file
Other files
Show all 22
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
OFFICE OF THE COMPTROLLER
PROMPT PAY DISCOUNT FORM
Contractor/Bidder Name:
Vendor Code (VCUST): Contract/RFR Number(s) (Alternate ID#):
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:
info.comptroller@mass.gov image1.png
File details come from the government source that posted it. Updated .