41 U.S.C. § 7109

Interest

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(a)Period.—(1)In general.—Interest on an amount found due a contractor on a claim shall be paid to the contractor for the period beginning with the date the contracting officer receives the contractor’s claim, pursuant to section 7103(a) of this title, until the date of payment of the claim.(2)Defective certification.—On a claim for which the certification under section 7103(b)(1) of this title is found to be defective, any interest due under this section shall be paid for the period beginning with the date the contracting officer initially receives the contractor’s claim until the date of payment of the claim.(b)Rate.—Interest shall accrue and be paid at a rate which the Secretary of the Treasury shall specify as applicable for each successive 6-month period. The rate shall be determined by the Secretary of the Treasury taking into consideration current private commercial rates of interest for new loans maturing in approximately 5 years.(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3825.)

Historical and Revision Notes
Revised Section	Source (U.S. Code)	Source (Statutes at Large)
7109(a)(1)	41:611 (1st sentence).	Pub. L. 95–563, § 12, Nov. 1, 1978, 92 Stat. 2389.
7109(a)(2)	41:611 note.	Pub. L. 102–572, title IX, § 907(a)(3), Oct. 29, 1992, 106 Stat. 4518.
7109(b)	41:611 (last sentence).

In subsection (a)(2), the words “on or after the date of the enactment of this Act”, “the later of”, and “or the date of the enactment of this Act” are omitted as obsolete.

Subsection (b) is substituted for “The interest provided for in this section shall be paid at the rate established by the Secretary of the Treasury pursuant to Public Law 92–41 (85 Stat. 97) for the Renegotiation Board” to eliminate obsolete language and to codify the criteria under which the interest rate is computed. Section 2(a)(3) of the Act of July 1, 1971 (Pub. L. 92–41, 85 Stat. 97), amended section 105(b)(2) of the Renegotiation Act of 1951 (Mar. 23, 1951, ch. 15, 65 Stat. 13) by adding provisions substantially similar to those enacted here. However, the Renegotiation Act of 1951 (Mar. 23, 1951, ch. 15, 65 Stat. 7) was omitted from the Code pursuant to section 102(c)(1) of the Act (65 Stat. 8), amended several times, the last being Public Law 94–185 (89 Stat. 1061), which provided that most provisions of that Act do not apply to receipts and accruals attributable to contract performance after September 30, 1976, and in view of the termination of the Renegotiation Board and the transfer of property and records of the Board to the Administrator of the General Services Administration on March 31, 1979, pursuant to Public Law 95–431 (92 Stat. 1043). Although the Renegotiation Board is no longer in existence, Federal agencies, including the General Services Administration, are required to use interest rates that are computed under the criteria set out in this subsection. See 31:3902(a) and the website of the Bureau of the Public Debt, available at http://www.publicdebt.treas.gov/opd/opdprmt2.htm. For an example of publication of rates under the criteria enacted here, see Federal Register, volume 67, number 247, page 78566, December 24, 2002.

Notes of Decisions

Cited in 138 cases (42 in the last 5 years), 2012–2026 · leading case: Puerto Rico High. & Transp. Auth. v. Redondo Constr. Corp. (In Re Redondo Constr. Corp.), 820 F.3d 460 (1st Cir. 2016).

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Puerto Rico High. & Transp. Auth. v. Redondo Constr. Corp. (In Re Redondo Constr. Corp.), 820 F.3d 460 (1st Cir. 2016). · cites it 7× “3 Redondo filed a response motion defending the bankruptcy court’s prejudgment interest award, arguing (1) that the three construction projects “had federal funds participation allowing for the computation of the pre-judgment interest award[]” (presumably referring to 41 U.S.C.…”

Magnus Pac. Corp. v. United States, 133 Fed. Cl. 640 (Fed. Cl. 2017). · cites it 5× “Riprap Claim The levee restoration contract between the IBWC and Magnus, as modified, was not a typical sealed-bid government contract for a construction project.”

Raytheon Co. v. United States, 105 Fed. Cl. 236 (Fed. Cl. 2012). · cites it 3× “61 plus interest pursuant to 41 U.S.C. § 7109 (a)(1) 2. Optical Segment: $0.”

Meridian Eng'g Co. v. United States, 130 Fed. Cl. 147 (Fed. Cl. 2016). · cites it 4× “Simple interest on claims shall be paid at the rate, fixed by the Secretary of the Treasury as provided in the [CDA, 41 U.S.C.§ 7109], which is applicable to the period during which the Contracting Officer receives the claim and then at the rate applicable for each 6-month…”

Redondo Constr. Corp. v. Puerto Rico High. & Transp. Auth. (In Re Redondo Constr. Corp.), 678 F.3d 115 (1st Cir. 2012). · cites it 2× “In its post-trial brief, the debtor sought prejudgment interest on the basis that 41 U.S.C. § 7109 (a)(1) applies to this case because each of the three projects was partially financed by federal funds.”

Mw Builders, Inc. v. United States, 134 Fed. Cl. 469 (Fed. Cl. 2017). · cites it 2× “at 13-14 ( 41 U.S.C. § 7109 (9) (internal correction omitted)).”

Meridian Eng'g Co. v. United States, 885 F.3d 1351 (Fed. Cir. 2018). “See 41 U.S.C. § 7109 (a)(1) (2012) ("Interest on an amount found due a contractor on a claim shall be paid to the contractor for the period beginning with the date the [CO] receives the contractor's claim .”

Meyer Grp., Ltd. v. United States, 121 Fed. Cl. 105 (Fed. Cl. 2015). · cites it 4× “51, plus interest calculated pursuant to 41 U.S.C. § 7109 (a)(1). Findings of Fact 2 The Parties and Other Key Individuals Meyer Group is a licensed real estate brokerage company with its principal place of *109 business in the District of Columbia.”

Dms Imaging, Inc. v. United States, 123 Fed. Cl. 645 (Fed. Cl. 2015). · cites it 2× “In addition, Plaintiff is entitled to reasonable attorney’s fees and litigation costs, and contractual late payment fees and service fees on the eight unpaid lease payments in an amount to be determined in further proceedings.”

Veridyne Corp. v. United States, 107 Fed. Cl. 762 (Fed. Cl. 2012). · cites it 2× “22, plus interest under 41 U.S.C. § 7109 (a)(1), and that defendant was entitled to recover a total of $1,965,802.”

Veridyne Corp. v. United States, 105 Fed. Cl. 769 (Fed. Cl. 2012). “22, plus interest under 41 U.S.C.A. § 7109 (a)(1), from June 14, 2005, the date on which MAR-AD’s contracting officer received plaintiffs claim.”

Hernandez, Kroone & Assocs., Inc. v. United States, 110 Fed. Cl. 496 (Fed. Cl. 2013). “20, plus interest at the rate provided in 41 U.S.C. § 7109 , on $1,555.20 of the judgment from December 23, 2005 until payment, and on $9,366.”

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— 41 U.S.C. § 7109(a)(1) — 1 case

Meridian Eng'g Co. v. United States, 130 Fed. Cl. 147 (Fed. Cl. 2016). “Simple interest on claims shall be paid at the rate, fixed by the Secretary of the Treasury as provided in the [CDA, 41 U.S.C.§ 7109], which is applicable to the period during which the Contracting Officer receives the claim and then at the rate applicable for each 6-month…”

— 41 U.S.C. § 7109(b) — 1 case

Lcc-Mzt Team IV v. United States (Fed. Cl. 2021).

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