What payment terms apply to SDVOSB federal contracts?
Federal contracts use standard Prompt Payment Act terms — typically Net 30 for invoices, with interest penalties if payment is late. Some contracts use accelerated payment for small businesses (Net 15 or less). Electronic invoicing through IPP (Invoice Processing Platform) or agency-specific systems is standard. SDVOSBs should submit accurate, timely invoices and follow up on unpaid invoices after the payment due date.
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