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GSA Issues Memo on Accelerated Payments to Small Business Contractors, Subcontractors

1 min read

The General Services Administration has cleared a class deviation from the Federal Acquisition Regulation to allow accelerated payments to small business contractors and subcontractors and comply with a provision of the fiscal 2020 National Defense Authorization Act.

The class deviation sets a 15-day goal following receipt of invoice for accelerated payments to prime contractors that are small businesses and those that contract with small businesses, according to a memo issued Friday.

The policy also blocks prime contractors from charging a fee to subcontractors when releasing accelerated payments.

The deviation does not apply to multiagency contracts or Federal Supply Schedule contracts and remains in effect until integrated into FAR or revoked, according to the memo signed by Jeffrey Koses, senior procurement executive at GSA’s office of acquisition policy.