Friday, September 14, 2012

SUBJECT: Class Deviation- Providing Accelerated Payment to Small Business Subcontractors
OARS Tracking Number: 2012-00014

Effective immediatel y, contracting officers shall use the attached clause to require prime
contractors to pay small business subcontractors on an accelerated tim etable to the maximum
extent practicable. Accordingly, contracting officers shall insert the clause at 52.232-99
(DEVIA TION)(August 2012) in all new solicitations and resultant contracts after the date this
deviation is signed and, to the extent feasible, modify existing solicitations to insert the clause at
52.232-99 (DEVIATION). Contracting officers may amend existing contracts to insert this
clause in accordance with FAR 1.108(d).

52.232-99, Providing Accelerated Payment to Small Business Subcontractors
The contracting officer shall insert the following clause in all solicitations and resultant
(DEVIATION 2012-00014) (August 2012)
This clause implements the temporary policy provided by OMB Policy Memorandum M-12-16,
Providing Prompt Payment to Small Business Subcontractors, dated July 11,2012.
(a) Upon receipt of accelerated payments from the Government, the contractor is required to
make accelerated payments to small business subcontractors to the maximum extent
practicable after receipt of a proper invoice and all proper documentation from the small
business subcontractor.
(b) Include the substance of this clause, including this paragraph (b), in all subcontracts with
small business concerns.
(c) The acceleration of payments under this clause does not provide any new rights under the
Prompt Payment Act.


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