P. L. 118-31

SEC. 862. PAYMENT OF SUBCONTRACTORS.

(a) In General.--Section 8(d)(13) of the Small Business Act (15 U.S.C. 637(d)(13)) is amended--

1) in subparagraph (B)(i), by striking ``90 days'' and inserting ``30 days'';

(2) in subparagraph (C)--

(A) by striking ``contract shall'' and inserting ``contract--

``(i) shall'';

(B) in clause (i), as so designated, by striking the period at the end and inserting ``; and''; and

(C) by adding at the end the following:

``(ii) may enter or modify past performance information of the prime contractor in connection with the unjustified failure to make a full or timely payment to a subcontractor subject to this paragraph before or after close-out of the covered contract.'';

(3) in subparagraph (D), by striking ``subparagraph (E)'' and inserting ``subparagraph (F)'';

(4) by redesignating subparagraph (E) as subparagraph (F); and

(5) by inserting after subparagraph (D) the following:

``(E) Cooperation.--

``(i) In general.--Once a contracting officer determines, with respect to the past performance of a prime contractor, that there was an unjustified failure by the prime contractor on a covered contract to make a full or timely payment to a subcontractor covered by subparagraph (B) or (C), the prime contractor is required to cooperate with the contracting officer, who shall consult with the Director of Small Business Programs or the Director of Small and Disadvantaged Business Utilization acting pursuant to section 15(k)(6) and other representatives of the Government, regarding correcting and mitigating the unjustified failure to make a full or timely payment to a subcontractor.

``(ii) Duration.--The duty of cooperation under this subparagraph for a prime contractor described in clause (i) continues until the subcontractor is made whole or the determination of the contracting officer determination is no longer effective, and regardless of performance or close-out status of the covered contract.''.

(b) Regulations.--Not later than 180 days after the date of the enactment of this Act, the Administrator shall submit to the Federal Acquisition Regulatory Council proposed revisions to regulations that the Administrator determines necessary to carry out the amendments made by this section.

Sec. 862--Payment of subcontractors

The Senate amendment contained a provision (sec. 850) that would require a prime contractor to cooperate with a contracting officer regarding correcting and mitigating an unjustified failure to make a full or timely payment to a subcontractor once such contracting office determines that there was an unjustified failure by the prime contractor on a covered contract to make a full or timely payment to a subcontractor.

The House bill contained no similar provision.

The House recedes with a clarifying amendment.