DOD, GSA, and NASA Require Accelerated Payments to Small Business Subcontractors

February 19, 2014

DOD, GSA, and NASA Require Accelerated Payments to Small Business Subcontractors

On November 25, 2013, the Department of Defense (DOD), the General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA) issued a final rule amending the Federal Acquisition Regulation to add a new clause mandating the prompt payment of small business subcontractors. Under the rule, prime contractors receiving an accelerated payment from the government will be required to make accelerated payments to small business subcontractors. These payments should occur as soon as practicable after the prime contractor receives all necessary invoices and documentation from the small business subcontractor. This clause will now be inserted into all new solicitations and subsequent contracts, including those for commercial items. Notably, the rule does not create any new rights under the Prompt Payment Act. This rule became effective on December 26, 2013. (78 Fed. Reg. 70477, 11/25/13.)






NCMA Resources | Advertise | Privacy Policy | Contact Us | Site Map | © 2012 National Contract Management Association