DPAP Reinstates Accelerated Payments to Prime Contractors

DPAP Reinstates Accelerated Payments to Prime Contractors

In a July 14 memorandum, Defense Procurement and Acquisition Policy (DPAP) director Richard Ginman announced the Department of Defense is reinstating the temporary practice of providing accelerated payments to all prime contractors, effective August 1, 2014. Contracting officers are directed to continue using the clause at Federal Acquisition Regulation (FAR) 52.232-40, “Providing Accelerated Payments to Small Business Subcontractors,” which requires prime contractors to make accelerated payments to their small business subcontractors upon receipt of accelerated payments from the government.

Last week, the Office of Management and Budget extended the administration’s temporary policy requiring accelerated payments to prime contractors through December 31, 2016. The policy had been set to expire on July 11, 2014.

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