25.  INTEREST.

The requirements of this paragraph are not applicable when the Contracting Officer affirmatively determines that its inclusion would not be in the best interests of the Government.

     a.  Notwithstanding any other term or condition of the grant, all amounts that become payable by the recipient to the Government under the grant shall bear simple interest from the date due until paid unless paid within 30 days of becoming due.  The interest rate shall be the interest rate established by the Secretary of the Treasury (Secretary) as provided in Section 11 of the Debt Collection Act of 1982 (31 U.S.C. 3717), 10 CFR 600.363, which is applicable to the period in which the amount becomes due, as provided in paragraph b. below, and then at the rate applicable for each 3-month period as fixed by the Secretary until the amount is paid.

    b.  Amounts shall be due at the earliest of the following dates:

          (1) The date fixed under the grant.

          (2) The date of the first written demand for payment consistent with the grant, including any demand resulting from a termination.

          (3) The date the Government transmits to the recipient a proposed agreement to confirm completed negotiations establishing the amount of debt.

     c.  The interest charge made under this provision may be reduced in accordance with the procedures prescribed in 4 CFR 102.13 or in accordance with agency regulations in effect on the date of original award of the grant.