Acquisition Policy Flash! 12-21
Purpose: To inform the VA Acquisition Workforce of new policy outlined in the Office of Management and Budget (OMB) Memorandum M-12-16, “Providing Prompt Payment to Small Business Subcontractors”, dated July 11, 2012.
Dated: November 5, 2012
FAR Section Impacted: 32.9, Prompt Payment
Effective Date: Immediately
Expiration Date: July 11, 2013
Background: OMB Memorandum M-12-16, issued July 11, 2012, establishes the Executive Branch policy that, to the full extent permitted by law, agencies shall take the steps outlined within the Memo to ensure that prime contractors are able to pay their small business subcontractors in a prompt fashion. In particular, agencies should, to the full extent permitted by the law, temporarily accelerate payments to all prime contractors, in order to allow them to provide prompt payments to small business subcontractors.
Agencies are encouraged to make payments to all prime contractors as soon as practicable, with a goal of paying all prime contractors within 15 days of receiving proper documentation.
The policy of automatically accelerating all payments to prime contractors shall terminate on 13 July 2013, one year from the date of OMB Memorandum M-12-16.
Action Required (refer to attached deviation): Effective immediately, contracting officers shall insert the attached clause in all new solicitations and resultant contracts and, to the extent feasible, modify existing solicitations to insert the attached clause. Contracting officers may amend existing contracts to insert this clause in accordance with FAR 1.108(d).
Applicability: This policy applies to all new solicitations and resultant contracts. Additionally, this policy also applies to existing solicitation and existing contracts where modification or amendment is feasible.
Questions or concerns should be addressed to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A), at (202) 461-6918, e-mail: firstname.lastname@example.org.