Rule would speed payments for small contractors
Checks would come to small businesses faster under a proposed accelerated payment rule. (Stock image)
The Obama administration announced a proposal Dec. 19 to move ahead with its plans to speed payments to small contractors.
The proposed rule is based on the July 11 Office of Management and Budget memo directing agencies to make contract payments faster to their prime contractors with the understanding that those companies will pass along the accelerated payments to their small subcontractors. The OMB policy is slated to end July 10, 2013.
The proposal would make the policy part of the Federal Acquisition Regulation. The FAR clause would be included in new solicitations after the effective date of the final rule and would require prime contractors to make accelerated payments to small subcontractors to the maximum extent possible.
Officials are accepting comments on the proposal through Feb. 19, 2013.
Matthew Weigelt is a former FCW senior writer who covered acquisition and procurement.