To address this oversight, OMB issued guidance last week to expand the program from small businesses to all prime contractors. Specifically, the guidance states that "...agencies should, to the full extent permitted by law, temporarily accelerate payments to all prime contractors, in order to allow them to provide prompt payments to small business subcontractors.
Under the new guidance, agencies shall encourage prime contractors to
- accelerate payments to their small business subcontractors
- consider modifying their existing contracts with small business subcontractors without consideration or fees to include a clause providing that the prime contractor will pay the small business subcontractor along an accelerated timetable to the maximum extent practicable and
- insert a similar clause in their future contracts with small business subcontractors.
If you're a small business subcontractor, you should talk to your primes to ensure you receive expedited payments.
This program is good for one year.