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

Public Law 108-136

House Conference Report 108-354

SEC. 851. REPORT ON CONTRACT PAYMENTS TO SMALL BUSINESSES.

(a) REPORT- The Comptroller General shall prepare and submit to the congressional defense committees a report on the timeliness of contract payments made to small businesses during fiscal years 2001 and 2002 by the Department of Defense. The report shall include an estimate of the following:

(1) The total amount of contract payments made by the Department to small businesses.

(2) The percentage of total contract payments to small businesses that were not made in a timely manner.

(3) The reasons that contract payments to small businesses were not made in a timely manner.

(4) The amount of interest owed and paid by the Department to small businesses due to contract payments not made in a timely manner.

(5) Such recommendations as the Comptroller General considers appropriate to improve the process for making contract payments to small businesses in a timely manner.

(b) DEFINITIONS- For purposes of subsection (a)--

(1) a payment is considered not made in a timely manner if it caused interest to accrue under chapter 39 of title 31, United States Code (relating to prompt payment); and

(2) the term `small business' means an entity that qualifies as a small business concern under the Small Business Act.

The House bill contained a provision (sec. 806) that would require the Secretary of Defense to evaluate provisions of law and regulations relating to the prompt payment of amounts due small business contractors under contracts with the Department of Defense.

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would require the Comptroller General of the United States to review the timeliness of contract payments the Department of Defense made to small businesses during fiscal years 2001 and 2002.