The government’s policy encouraging prompt payment to small business subcontractors has been extended to December 31, 2017.
In a Memorandum issued on January 11, 2017 by the Office of Management and Budget, OMB Director Shaun Donovan ordered that the popular policy be extended to the end of the year, and provided additional direction to agencies regarding their quarterly reports on implementing the accelerated payment policies.
The Office of Management and Budget has extended a policy aimed at providing accelerated payments to small business subcontractors. Without an extension, the policy would have expired last week.
According to an OMB memorandum announcing the extension, the policy will remain in effect until December 31, 2016. In the meantime, the memo states, the FAR Council is “considering strategies that might be used over the longer term to help maintain effective cash flow and prompt payment to small business subcontractors.”