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Extension to Class Deviation—Providing Accelerated Payment to Small Business Subcontractors

TO:Heads of Contracting Activity
FROM:Angela Billups, Ph.D. 
/ Angela Billups/
Associate Deputy Assistant Secretary for Acquisition
SUBJECT:Extension to Class Deviation—Providing Accelerated Payment to Small Business Subcontractors

Effective immediately, contracting officers shall use the attached clause to require prime contractors to pay small business subcontractors on an accelerated timetable to the maximum extent practicable.  Accordingly, contracting officers shall insert the clause at 52.232-99 (DEVIATION)(AUG 2013) in all new solicitations issued and resultant contracts awarded after the date this extension to the deviation is signed and, to the extent feasible, modify existing solicitations to insert the clause at 52.232-99 (DEVIATION)(AUG 2013).  Contracting officers may amend existing contracts to insert this clause in accordance with FAR 1.108(d).

This deviation implements the one year extension provided by OMB Policy Memorandum M-13-15, Extension of Policy to Provide Accelerated Payment to Small Business Subcontractors, dated July 11, 2013 which extends the policy set forth in OMB Policy Memorandum M-12-16, Providing Prompt Payment to Small Business Subcontractors, dated July 11, 2012.  That temporary policy was designed to accelerate payment from federal prime contractors to their small business subcontractors.  To assist in expediting contractor payments to small business subcontractors, HHS will provide accelerated payments to all prime contractors after receipt of a proper invoice and all proper documentation while also maintaining necessary HHS internal controls (see attached August 15, 2012 letter signed by HHS Deputy Assistant Secretary, Finance).

This deviation remains in effect until it is incorporated into the FAR or HHSAR or is otherwise rescinded.  My point of contact is Cheryl Howe, who may be reached on 202-690-5552 or at cheryl.howe@hhs.gov.

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