Federal Acquisition Regulation
Payments to Small Business Subcontractors
FAR 52.242-5
As prescribed in Contract clause (FAR 42.1504) , insert the following clause: Payments to Small Business Subcontractors (Jan 2017) (a) Definitions . As used in this clause- Reduced payment means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor. Untimely payment means a payment that is more than 90 days past due under the terms and conditions of a subcontract, for supplies and services for which the Government has paid the prime contractor. (b) Notice . The Contractor shall notify the Contracting Officer, in writing, not later than 14 days after- (1) A small business subcontractor was entitled to payment under the terms and conditions of the subcontract; and (2) The Contractor- (i) Made a reduced or untimely payment to the small business subcontractor; or (ii) Failed to make a payment, which is now untimely. (c) Content of notice . The Contractor shall include the reason(s) for making the reduced or untimely payment in any notice required under paragraph (b) of this clause. (End of clause)
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