President Signs Patent Reform BillSeptember 20, 2011
President Barack Obama last week announced that he was ordering all federal agencies to accelerate their payments to their small-business contractors.
To implement this order, Jack Lew, the director of the Office of Management and Budget (OMB), issued a memorandum to all executive branch departments and agencies, requiring them to being making payments to small-business contractors as soon as practical, to the full extent permitted by law.
The memorandum establishes a 15-day goal for agencies to make a payment after receiving a receipt. Agencies currently are required, via the Prompt Payment Act, to pay contractors within 30 days of receipt of relevant documents. The memorandum requires all agencies, by Nov. 1, to notify OMB of the date by which they will begin making accelerated payments and any explanations for why an earlier commencement date is not practical.
With a multitude of small businesses still struggling with a credit crunch and its attendant cash-flow difficulties, NSBA applauds the accelerated payment to small-business federal contractors.