President Extends Accelerated Payments Program for Small Businesses

By Kelline R. Linton,
Junior Associate.


On July 10, 2014, at the direction of the President, the Office of Management and Budget issued a memorandum that directed all government agencies to continue QuickPay for federal small business subcontractors through December 31, 2016.


QuickPay is an accelerated payments initiative, where the government pays its large contractors faster and, in return, requires them to pay their small business subcontractors faster. The program was due to expire on July 11.


Pursuant to the memorandum, the Department of Defense is re-instating the temporary practice of providing accelerated payments to all prime contractors, effective August 1, 2014. DoD contracting officers will continue to use the clause at FAR 52.232-40, which requires that Contractors, upon receipt of accelerated payments from the Government, make accelerated payments to small business subcontractors. Keep an eye out for the new FAR class deviation, which will likely contain the same terms and conditions as in the current coverage.