New FAR Rule Implemented For Prime Contractors

A final ruling amending the Federal Acquisition Regulation (FAR) has been issued and is effective January 19, 2017.   The ruling will require prime contractors to self report to Contracting Officers of any reduced or untimely payments made to subcontractors.  Untimely payments are described as payments that are 90 days or more past due under the terms and conditions of the subcontract.  Reduced payments are described as a payment that is less than the agreed upon amount of the subcontract. The new clause applies to prime contractors who make payments to first tier subcontractors and who are required to implement small business subcontracting plans. The prime contractor is required to report the untimely or reduced payments within 14 days after the incident to the assigned Contracting Officer.  For more details of the new clause refer to FAR 52.242-5 Payments To Small Business Subcontractors by clicking here. Ilene Giles is a GSA schedules expert that has helped thousands of businesses increase their bottom line with a GSA schedule.  Get her FREE CD, “What You Need To Know Before Applying For A GSA schedule” or contact her today for a FREE consultation at GSAProposalMaven.com/meet-Ilene.