The Obama administration has directed agencies to make contract payments faster to all their prime contractors for the next year with the understanding that those companies will pass along those accelerated payments to their small-business subcontractors, officials said July 11.
The administration is aiming to get money into the hands of more small businesses, although it’s a short-term relief. Indeed, officials are setting clear expectations for prime contractors by making payment habits a future factor in the bid selection process.
Keep reading this article at: http://fcw.com/articles/2012/07/11/subcontractor-prompt-payment-omb.aspx.
The July 11, 2012 OMB policy directive can be found at: http://contractingacademy.gatech.edu/wp-content/uploads/2012/06/Providing-Prompt-Payment-to-Small-Business-Subcontractors-OMB-07.11.2012.pdf.