FAR 52.242-5 Payments to Small Business Subcontractors
Clause Federal Acquisition Regulation Jan 2017 version
Facts
- Citation
- FAR 52.242-5
- Type
- Clause
- Current version
- January 2017
- Prescribed in
- FAR 42.1504
- Last amended
- 81 FR 93481 Effective Jan 19, 2017
- 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 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)
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Federal Acquisition Regulations; Payment of Subcontractors |
Terms defined
- Reduced payment
- Untimely payment
Quick answers
What is FAR 52.242-5?
FAR 52.242-5 is a clause of the Federal Acquisition Regulation, titled "Payments to Small Business Subcontractors".
What is the current version of FAR 52.242-5?
The current version is dated January 2017.
Where is FAR 52.242-5 prescribed?
It is prescribed in FAR 42.1504, Contract clause.
When was FAR 52.242-5 last changed?
The most recent final rule on record is "Federal Acquisition Regulations; Payment of Subcontractors" (81 FR 93481), published Dec 20, 2016 and effective Jan 19, 2017.
Are changes to FAR 52.242-5 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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