The Contracting Education Academy

Contracting Academy Logo
  • Home
  • Training & Education
  • Services
  • Contact Us
You are here: Home / Government Contracting News / Per OMB guidance, DoD orders accelerated payments to prime contractors on behalf of small subcontractors

August 21, 2012 By AMK

Per OMB guidance, DoD orders accelerated payments to prime contractors on behalf of small subcontractors

Contracting officers within the Department of Defense (DoD) have been ordered to modify existing contracts and establish new contracts in such a way that small business subcontractors are paid on an accelerated basis.

Richard Ginman, director of defense procurement and acquisition policy, issued this order on Aug. 15, 2012 in response to a policy announced by the Office of Management and Budget (OMB) in mid-July.

The DoD directive sets forth a “class deviation” so that all new solicitations and contracts contain a clause that requires prime contractors to pay small business subcontractors on an accelerated timetable. In addition, existing solicitations and contracts are to be modified, if possible, to include the new accelerated payment clause.

To facilitate the prompt payments to subcontractors, DoD is to provide accelerated payments to its prime contractors after receipt of a proper invoice and appropriate documentation.

The OMB policy is a temporary one, in effect for one-year.

A copy of DoD’s Aug. 15, 2012 class deviation can be found here: DoD Class Deviation – Accelerated Payment to SB Subs 08.15.2012

A copy of OMB’s July 11, 2012 policy memorandum can be found here: OMB Policy Memo – Prompt Payment to SB Subs 07.11.2012

Filed Under: Government Contracting News Tagged With: contract payments, DoD, OMB, small business

Popular Topics

abuse acquisition reform acquisition strategy acquisition training acquisition workforce Air Force Army AT&L bid protest budget budget cuts competition cybersecurity DAU DFARS DHS DoD DOJ FAR fraud GAO Georgia Tech GSA GSA Schedule GSA Schedules IG industrial base information technology innovation IT Justice Dept. Navy NDAA OFPP OMB OTA Pentagon procurement reform protest SBA sequestration small business spending technology VA
Contracting Academy Logo
75 Fifth Street, NW, Suite 300
Atlanta, GA 30308
info@ContractingAcademy.gatech.edu
Phone: 404-894-6109
Fax: 404-410-6885

RSS Twitter

Search this Website

Copyright © 2023 · Georgia Tech - Enterprise Innovation Institute