This class deviation is issued under the authority of FAR 1.404. Civilian Agency Acquisition Council (CAAC) Letter 2020-02, Class Deviation from the Federal Acquisition Regulation (FAR) to provide for accelerated payments to small business contractors and subcontractors, issued April 6, 2020 serves at the consultation with the CAAC Chair. 4.
Applicability. This class deviation applies to all contracts and orders where GSA is the only agency making payments. The deviation does not apply to Federal Supply Schedule contracts or Multi-agency Contracts. 5.
This deviation implements statutory law that encourages accelerated payments to prime contractors that are small businesses in addition to accelerated payments to prime contractors that subcontract with small business concerns addressed in FAR Part 32, Contract Financing.
52.232-40 PROVIDING ACCELERATED PAYMENTS TO SMALL BUSINESS SUBCONTRACTORS [(DEVIATION APR 2020)]
(a)[(1) In accordance with 31 U.S.C. 3903 and 10 U.S.C. 2307, u]Upon receipt of accelerated payments from the Government, the Contractor shall make accelerated payments to its small business subcontractors under this contract [in accordance with the accelerated payment date established], to the maximum extent practicable and prior to when such payment is otherwise required under the applicable contract or subcontract, [with a goal of 15 days] after receipt of a proper invoice and all other required documentation from the small business subcontractor [if a specific payment date is not established by contract.
(2) The Contractor agrees to make such payments to its small business subcontractors without any further consideration from or fees charged to the subcontractor].
(b) The acceleration of payments under this clause does not provide any new rights under the Prompt Payment Act.
(c) Include the substance of this clause, including this paragraph (c), in all subcontracts with small business concerns, including subcontracts with small business concerns for the acquisition of commercial items.
(End of clause)
(c) Include the substance of this clause, including this paragraph (c), in all subcontracts with small business concerns, including subcontracts with small business concerns for the acquisition of commercial items.