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Acquisition Policy Flash! 14-07

What's Changed?

Providing Accelerated Payments to Small Business Subcontractors

Purpose:  The purpose of this Acquisition Flash is to inform the VA acquisition workforce the VA Class Deviation - Providing Accelerated Payments to Small Business Subcontractors, dated November 5, 2012 is rescinded and FAR clause 52.232-40, Providing Accelerated Payment to Small Business Subcontractors should be included in contracts and solicitations as appropriate.

Background:  The deviation was issued in order to comply with OMB Memorandum M-12-16, issued July 11, 2012, which directed the VA to provide accelerated payments to small business subcontractors.  The memo established 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.

These requirements have now been incorporated into the FAR clause 52.232-40, eliminating the need for the deviation.

Dated:  August 18, 2014

Federal Acquisition Regulation (FAR) Section Impacted:  FAR 52.232-99, Providing Accelerated Payment to Small Business Subcontractors (rescinded) and FAR clause 52.232-40, Providing Accelerated Payment to Small Business.

Effective Date:  Immediately

Action Required:  VA Contracting Officers will:

  • Cease use of the VA Class Deviation - Providing Accelerated Payments to Small Business Subcontractors, dated November 5, 2012.
  • Include FAR clause 52.232-40, Providing Accelerated Payment to Small Business Subcontractors in new solicitations and resultant contracts, as appropriate.

Additional Information:  Questions or concerns should be addressed to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A) at (202) 632-5288 or va.procurement.policy@va.gov.