Government Contracts Monitor

Short Takes

July 17, 2013

One year ago, the Office of Management and Budget (OMB) issued a policy memorandum directing agencies to accelerate payments to prime contractors – with the goal being 15 days from the receipt of a proper invoice – so that the prime contractor can accelerate payments to small business subcontractors.  This memorandum was followed by a temporary FAR clause (reported here).  This policy was set to expire July 11, 2013 but has been extended for another year to allow OMB and agencies to evaluate the impact of accelerated payments on small business subcontractors.