DOD, GSA, and NASA Propose to Require Prime Contractors to Make Accelerated Payments to their Small Business Subcontractors

January 18, 2013

On December 19, 2010, DOD, GSA, and NASA issued a proposed rule regarding accelerated payments to small business subcontractors. If enacted, the rule would create a new FAR clause that would be mandatory in all solicitations—including solicitations for commercial items. The clause would require prime contractors who have received accelerated payments from the government to, in turn, make accelerated payments to their small business subcontractors “to the maximum extent practicable.” Written comments on the proposed rule should be submitted on or before February 19, 2013. (77 Fed. Reg. 78089, 12/19/2012.)