FAR and DFARS › FAR Part 14: Sealed Bidding › Subpart 14.4
FAR 14.408-3 Prompt payment discounts.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section says that when the government evaluates bids, it will not factor in any prompt payment discounts a bidder offers. However, if a discount is offered, it becomes part of the award and the payment center will take the discount if it pays within the specified discount period. Bidders can also choose to offer discounts on individual invoices instead of with the bid.
Applies to: Bidders on government contracts and the payment center
Key terms: prompt payment discounts · evaluation of bids · award · discount period · individual invoices
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Prompt payment discounts shall not be considered in the evaluation of bids. However, any discount offered will form a part of the award, and will be taken by the payment center if payment is made within the discount period specified by the bidder. As an alternative to indicating a discount in conjunction with the offer, bidders may prefer to offer discounts on individual invoices.
(b) See 32.111(b)(1), which prescribes the contract clause at 52.232-8, Discounts for Prompt Payment.
Sections it refers to
← 14.408-2 Responsible bidder—reasonableness of price. · 14.408-4 Economic price adjustment. →
Rule changes for FAR Part 14
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 14, 28, 36, and 52 ↗ · proposed 2026-09-18 · comments due 2026-10-19
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.