ADMINISTRATION EXTENDS POLICY TO SPEED UP SMALL BIZ PAYMENTS

The Obama Administration has extended for another year, to July 11, 2014, a policy to have agencies accelerate payments to prime contractors so they can more quickly pay small business subcontractors. While federal agencies typically have 30 days to pay prime contractors, the policy directs the Department of Energy and other agencies to accelerate such payments to within 15 days of receiving proper documentation, with the aim of prime contractors also accelerating payments to their small business subcontractors. “This extension will allow [the White House Office of Management and Budget] and agencies to continue to evaluate the impact of accelerated payments on small business subcontractors. It will also allow the Federal Acquisition Regulatory Council to solicit public input on strategies that might be used over the longer term to help maintain effective cash flow and prompt payments to small business subcontractors,” acting OMB Deputy Director for Management Steven VanRoekel wrote in a July 11 memorandum.