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Proposed Rule Requires Prime Contractor to Report Late or Reduced Payments to Small Business Subcontractors

January 25, 2016 By Andrew Howard

On January 20, 2016, the Department of Defense, General Services Administration, and NASA issued a proposed rule to amend the FAR and implement a section of the Small Business Jobs Act of 2010. This proposed rule, which will implement Section 1334 of the Small Business Jobs Act of 2010 and the Small Business Administration’s (SBA) implementation of Section 1334, requires that, among other things, a prime contractor (1) notify the contracting officer, in writing, if the contractor makes a reduced or untimely payment to a small business subcontractor; and (2) disclose the reasons for the reduced [...]Read more

Filed Under: Advice to Contractors & Grant Recipients Tagged With: Federal Acquisition Regulations (FAR), National Aeronautics and Space Administration (NASA), Payments, Prime Contractor, Small Business Administration (SBA), Small Business Jobs Act of 2010, Subcontracting Plans, U.S. Department of Defense (DOD), U.S. General Services Administration (GSA)

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This blog is a service of Alston & Bird’s Government Contracts team and provides insights on cases, rules, trends, and latest developments in local, state, and federal government contracting. Our attorney observations include analysis of investigations, litigation, protests and issues affecting present or prospective prime contractors, subcontractors, and grant recipients across various industries.

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