DoD Proposes Rule to Provide for Accelerated Payments to Small Business Contractors and Subcontracto
On May 31, the Department of Defense (DoD) issued a proposed rule to implement section 852 of the FY 2019 National Defense Authorization Act (NDAA) (Pub. L. 115-232) by amending the Defense Federal Acquisition Regulation Supplement (DFARS) to provide accelerated payments to small business contractors and subcontractors.
"Specifically, section 852 requires DoD, to the fullest extent permitted by law, to establish an accelerated payment date for small business contractors, with a goal of 15 days after receipt of a proper invoice, if a specific payment date is not established by contract. For contractors that subcontract with small businesses, section 852 requires DoD, to the fullest extent permitted by law, to establish an accelerated payment date, with a goal of 15 days after receipt of a proper invoice, if: (1) A specific payment date is not established by contract, and (2) the contractor agrees to make accelerated payments to the subcontractor without any further consideration from, or fees charged to, the subcontractor."
Comments are due on or before July 30, 2019.
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Proposed Rule: https://www.federalregister.gov/documents/2019/05/31/2019-11309/defense-federal-acquisition-regulation-supplement-prompt-payments-of-small-business-contractors