New Federal Acquisition Circular Includes Rule on Late Payments to Subcontractors

The Federal Acquisition Regulation (FAR) Council has published a second Federal Acquisition Circular in two weeks, this one containing two final rules. The first provides guidance for contractors who must train employees for handling personally identifiable information. The second rule states that if a contract requires a subcontracting plan, the prime contractor must notify the contracting officer in writing if the prime contractor pays a reduced payment to a small business subcontractor, or an untimely payment if the payment that is more than 90 days past due for supplies or services for which the government has paid the contractor. The contractor is also to include the reason for the reduction in payment or failure to pay. A contracting officer will then use his or her best judgment in determining whether the reduced or untimely payments were justified. The contracting officer must record the identity of a prime contractor with a history of three or more unjustified, reduced, or untimely payments to subcontractors within a 12-month period under a single contract, in the Federal Awardee Performance and Integrity Information System (FAPIIS).

Ebook: Market Insights For Purchasing IT Hardware

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The Trump Transition And Improving Public Procurement

Former Office of Federal Procurement Policy Administrator Steve Kelman writes about his experience looking to get a position in the Clinton administration, and the need for President-Elect Donald Trump’s administration to pay attention to procurement policy. Kelman cites three broad recommendations for the next administration: develop more information about contract performance; pivot to post-award contract management; and expand forms of contracting that pay for success.


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