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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle F — Small Business Matters

P. L. 115-

House Conference Report. 115-874

Section 2307(a) of title 10, United States Code, is amended—

(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;

(2) by striking “The head of any agency may—” and inserting “(1) The head of any agency may”; and

(3) by adding at the end the following new paragraph:

“(2) (A) For a prime contractor (as defined in section 8701 of title 41) that is a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)), the Secretary of Defense shall, to the fullest extent permitted by law, establish an accelerated payment date with a goal of 15 days after receipt of a proper invoice for the amount due if a specific payment date is not established by contract.

“(B) For a prime contractor that subcontracts with a small business concern, the Secretary of Defense shall, to the fullest extent permitted by law, establish an accelerated payment date with a goal of 15 days after receipt of a proper invoice for the amount due if—

“(i) a specific payment date is not established by contract; and

“(ii) the prime contractor agrees to make payments to the subcontractor in accordance with the accelerated payment date, to the maximum extent practicable, without any further consideration from or fees charged to the subcontractor.”.

The House bill contained a provision (sec. 852) would direct Federal agencies to establish a prompt payment goal of 15 days for small business prime contractors. It would also extend the accelerated payment objective to other-than small prime contractors that subcontract with small businesses, and encourage these prime contractors to also accelerate payments to their small business subcontractors.

The Senate bill contained no similar provision.

The Senate recedes with an amendment that limits the provision to the Department of Defense.