State Agency Compliance with the Prompt Contracting Law

We examined 20 State agencies' compliance with the Prompt Contracting Law to determine the extent of late contracting, the reasons for late contracting, and whether State agencies are paying not-for-profits interest when due. Generally, we found State agencies do not have contracts in place prior to directing the not-for-profit to start work and prompt contracting interest is not paid when due. We also found both not-for-profits and State agencies play a part in not getting contracts in place timely. In addition, we found that ambiguities in the Law allow for different interpretations as to if and when prompt contracting interest is due and how much interest is due.

For a complete copy of Report 2008-BSE-16-003 click here.