US Codex
Bill
Notes

To provide for prompt payments to small business contractors, and for other purposes.

S. 2893 · 115th Congress · May 22, 2018 · Lineage

A BILL

Section 1 Prompt payments of small business contractors

Section 2307(a) of title 10, United States Code, is amended—
(1)
by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;
(2)
by striking “The head of any agency may—” and inserting “(1) The head of any agency may”; and
(3)
by adding at the end the following new paragraph:

“(2)

“(A) For a prime contractor (as defined in section 8701 of title 41) that is a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)), 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.

“(B) 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—

“(i) a specific payment date is not established by contract; and

“(ii) 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.”