Frequently Asked Questions One Percent Discount Payment FAQs The Office of Contracting and Procurement is pleased to provide a list of the most frequently asked questions along with brief answers. We hope that this information is helpful to you. If you have further questions please phone the External Relations unit at (202) 727-0252. What exactly is a Discount? What is a Sale? The Discount is 1% of total sales invoiced (i.e. task orders, delivery orders, purchase orders, purchase cards) under the DC Supply Schedule. It is paid by Contractors as an aggregate sales discount to the District of Columbia government. A Sale is reflected as the total amount of all contracts received for that reporting period. Do all DC Supply Schedule contracts include the Discount clause? This requirement is included in all DC Supply Schedule contracts awarded since July 1, 2002. The Contractor is required to report all sales under the Schedule to OCP and remit a 1% Discount to OCP, quarterly. How do Contractors pay the Discount? All Schedule Contractors are required to complete a Quarterly Sales Report, which is due to the Office of Contracting and Procurement 30 days after the end of each fiscal quarter, even if the Contractor did not have any sales for that quarter. The discount is 1% of the invoiced quarterly sales for that reporting period. Can the Contractor pay the Discount by check? Yes. The Contractor must remit a check made payable to the D.C. Treasurer. Checks must be sent to: Office of Contracting and Procurement DCSS Contracting Officer One Judiciary Square 441 4th Street, N.W., Suite 700 South Washington, D.C. 20001 Attn: DCSS Quarterly Report What are standard fiscal year or calendar year quarters? Standard calendar quarters are as follows: Quarter 1 - October through December Quarter 2 - January through March Quarter 3 - April through June Quarter 4 - July through September The DC Supply Schedule Contractor's Quarterly Sales Report clause specifies that payment be due to OCP 30 days after the close of a standard quarter. How much is the Discount? The discount is 1% of invoiced sales. How is the Discount calculated? The discount to be remitted to the D.C. government is one percent (1%) of the total schedule invoiced contract sales. The remittance amount is a very simple calculation: If the reported sales are $500.00, then the discount remittance is $5.00. What procedures do Contractors follow when there is a question concerning the calculation of the Discount? Contractors should contact the DCSS Contracting Officer at 202-727-0252. How should Contractors identify payments as remittances to be applied toward their discount if they are paying by check? Proper identification of discount remittances assures credit to the proper contract account. The Contractor must follow the instructions in the Discount Clause and include the following identifying information: contract number(s), report amount(s), and report period(s). If a payment is submitted for more than one contract and/or for multiple report periods, the portion of the payment to be allocated to each report period and each contract number must be identified. How do Contractors know when to record a sale for Quarterly Reporting purposes? For Discount purposes, a sale is recognized at the time of invoice. The discount is a simple application of a rate to a sale. This method was implemented to minimize the administrative burden of Contractors; they do not need to maintain separate accounts for the purposes of calculating the DC Supply Schedule contract sales. Is the discount applicable to additional Contractor expenses such as travel on service contracts? The discount is a simple application of the rate to the sale. If a sale is made under a DC Supply Schedule contract, the discount applies. However, if Contractors do not record compensation for additional expenses as a sale under the contract, then the discount would not be applied. Can Contractors report sales and remit fees on a contract rather than Service Item Number (SIN) or Product Item Number (PIN) basis? Sales must be reported on a SIN or PIN basis in accordance with contract clause, Quarterly Sales Report. Discounts for multiple SINs or PINs and/or contracts may be consolidated into one check provided the check is annotated with identifying information: contract number(s), report period(s), and report amount(s). There is no requirement to remit the discount by individual SIN or PIN. What if a SIN or PIN is cancelled from a Schedule? Does the Contractor still owe the discount? Yes, the Contractor must report and remit discounts for all sales that occurred while that SIN or PIN was under contract. Where can Contractors obtain information regarding discounts? Questions regarding discounts may be addressed to the Office of Contracting and Procurement, DC Supply Schedule. Questions regarding a specific contract should be addressed to the Contracting Officer assigned to the contract. My contract provides for a prompt payment discount. An agency did pay within the specified time and took the prompt payment discount. It seems to me that I only have to pay the discount on the amount received from the agency? Is this correct? You are correct. Should a Contractor report sales and remit the discount if sales for a particular contract are zero or some small amount? Sales reports must be submitted quarterly. If no sales occur, the Contractor should show zero on the report. Fees must be submitted quarterly for all amounts greater than zero.