5-12.7 Penalties

A penalty amount (calculated, as a matter of policy, in accordance with Office of Management and Budget [OMB] regulations) will be paid, in addition to the interest, if:

• The supplier is owed interest.
• The supplier is not paid the interest within 10 days after the date the invoice amount is paid.
• The supplier makes a written demand that the Postal Service pay such a penalty not later than 40 days after the date the invoice amount is paid.