Small Business Payment for Performance Act of 2019

“15A. Equitable adjustments to construction contracts

“(a) Request for an equitable adjustment

“(1) In general—A small business concern performing a construction contract that was awarded by an agency may submit a request for an equitable adjustment to the contracting officer of the agency if the contracting officer directs a change in the terms of the contract performance without the agreement of the small business concern.

“(2) Requirements—A request submitted under paragraph (1) shall—

“(A) be timely made pursuant to the terms of the contract; and

“(B) specify the estimated amount required to cover additional costs resulting from the change in the terms of the contract performance.

“(b) Amount—Upon receipt of a request for equitable adjustment under subsection (a), the agency shall provide to the small business concern an interim partial payment in an amount that is not less than 50 percent of the estimated amount under subsection (a)(2)(B).

“(c) Limitation—Any interim partial payment made under this section shall not be deemed to be an action to definitize the request for an equitable adjustment.

“(d) Flow-Down of interim partial payment amounts

“(1) Payment to first tier subcontractor or supplier—A small business concern that requests an equitable adjustment under this section shall pay to a first tier subcontractor or supplier the portion of each interim partial payment received that is attributable to the increased costs of performance incurred by the first tier subcontractor or supplier due to the change in the terms of the contract performance.

“(2) Payment to other subcontractor or supplier—A first tier subcontractor or supplier that receives a portion of an interim partial payment under this section shall pay to a subcontractor or supplier at any tier the appropriate portion of the payment.”