Faster Payment for Small Prime Contractors Under New White House Policy

The White House has announced a new policy to improve the business climate for contractors that are small businesses. Agency heads are directed to begin paying invoices of prime contractors that are small businesses within 15 days. 

An Office of Management and Budget (OMB) Memo of September 14, 2011 informs heads of government agencies that accelerated payment is necessary to provide small businesses with a more predictable stream of resources. This will work to preserve and increase small business participation in Federal contracting, benefitting both the Federal agencies and taxpayers.

Agencies must inform OMB by November 1, 2011 of their implementation schedules. Asking when the respective agency will begin accelerating payment may be a diplomatic way to make sure your contracting officer is aware of the new policy.

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