FAR 52.232-40 Providing Accelerated Payments to Small Business Subcontractors
Clause Federal Acquisition Regulation Mar 2023 version
Facts
- Citation
- FAR 52.232-40
- Type
- Clause
- Current version
- March 2023
- Prescribed in
- FAR 32.009-2
- Last amended
- 88 FR 9730 Effective Mar 16, 2023
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this clause.
Text
As prescribed in 32.009-2 , insert the following clause:
Providing Accelerated Payments to Small Business Subcontractors (Mar 2023)
(a)
(1) In accordance with 31 U.S.C. 3903 and 10 U.S.C. 3801, within 15 days after receipt of accelerated payments from the Government, the Contractor shall make accelerated payments to its small business subcontractors under this contract, to the maximum extent practicable and prior to when such payment is otherwise required under the applicable contract or subcontract, after receipt of a proper invoice and all other required documentation from the small business subcontractor.
(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 products or commercial services.
(End of clause)
Federal Register history
Quick answers
What is FAR 52.232-40?
FAR 52.232-40 is a clause of the Federal Acquisition Regulation, titled "Providing Accelerated Payments to Small Business Subcontractors".
What is the current version of FAR 52.232-40?
The current version is dated March 2023.
Where is FAR 52.232-40 prescribed?
It is prescribed in FAR 32.009-2, Contract clause.
When was FAR 52.232-40 last changed?
The most recent final rule on record is "Federal Acquisition Regulation: Accelerated Payments Applicable to Contracts With Certain Small Business Concerns" (88 FR 9730), published Feb 14, 2023 and effective Mar 16, 2023.
Are changes to FAR 52.232-40 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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