2019 NDAA Provisions - Accelerated Payments for Small Businesses

Small businesses will certainly welcome this item tucked away into the current version of the proposed 2019 NDAA (National Defense Authorization Act) - accelerated payments.

Section 852, Prompt Payments of Small Business Contractors benefits both small business prime contractors and small business subcontractors. It provides the following:

1. For a prime contractor that is a small business concern, the head of an agency shall (not "may"), to the fullest extent permitted by law, establish an accelerated payment date with a goal of 15 days after receipt of a proper invoice for the amount due if a specific payment date is not established by contract.
2. For a prime contractor that subcontracts with a small business concern, the head of an agency shall, to the fullest extent permitted by law, establish an accelerated payment date with a goal of 15 days after receipt of a proper invoice for the amount due if
• a specific payment date is not established by contract and
• the prime contractor agrees to make payments to the subcontractor in accordance with the accelerated payment date to the maximum extent practicable without any further consideration from or fees charged to the subcontractor.

This is not exactly new. DoD has been working, with varying success to expedite payments to small business for several years now. By giving expedited payments a statutory foothold and using the word "shall" instead of "may" should give the program some permanence and a better chance that small businesses will truly see expedited payments.