S.Amdt. 1885

1. Adds SEC. __. TIMELY PAYMENT OF SMALL BUSINESS CONCERNS wherever appropriate

   Adds a section

   Inserted: SEC. __. TIMELY PAYMENT OF SMALL BUSINESS CONCERNS.

   Inserted: (a) In General.--Section 15 of the Small Business Act (15 U.S.C. 644) is amended by adding at the end the following:

   Inserted: "(s) Regulations Relating to Timely Payments.--

   Inserted: "(1) Regulations required.--

   Inserted: "(A) In general.--Subject to subparagraph (B), not later than 12 months after the date of enactment of this subsection, the Federal Acquisition Regulatory Council, in consultation with the Director of the Office of Management and Budget and the Administrator, shall propose regulations to require prime contractors awarded a contract by the Federal Government to make timely payments to their subcontractors that are small business concerns. Such regulations may provide for exemptions, as appropriate.

   Inserted: "(B) Other regulations.--If the Administrator, in consultation with the Federal Acquisition Regulatory Council and the Director of the Office of Management and Budget, determines that the requirements under section 8(d)(12) are sufficient to ensure that prime contractors make timely payments to subcontractors that are small business concerns, the regulations issued under section 8(d)(12)(E) shall be deemed to satisfy the requirement to propose regulations under subparagraph (A) of this paragraph.

   Inserted: "(2) Considerations.--In proposing the regulations under paragraph (1), the Administrator, in consultation with the Federal Acquisition Regulatory Council and the Director of the Office of Management and Budget, shall consider--

   Inserted: "(A) requiring a prime contractor to pay a subcontractor that is a small business concern for satisfactory performance that fulfills the terms of the subcontract not later than 30 days after the date on which the prime contractor receives a payment from the Federal Government, unless the prime contractor has a legal obligation to make an earlier payment;

   Inserted: "(B) developing--

   Inserted: "(i) incentives for prime contractors that pay subcontractors in accordance with the regulations; or

   Inserted: "(ii) late interest payments or penalties for prime contractors that do not pay subcontractors in accordance with the regulations;

   Inserted: "(C) requiring that any subcontracting plan under paragraph (4) or (5) of section 8(d) contain a detailed description of when and how subcontractors will be paid; and

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   Inserted: "(D) including data in the Past Performance Information Retrieval System relating to whether contractors have made timely payments to subcontractors that are small business concerns.".

   Inserted: (b) Technical and Conforming Amendments.--Section 8(d)(6) of the Small Business Act (15 U.S.C. 638(d)(6)) is amended--

   Inserted: (1) in subparagraph (F), by striking "and" at the end;

   Inserted: (2) in subparagraph (G)(ii), by striking the period at the end and inserting "; and"; and

   Inserted: (3) by adding at the end the following:

   Inserted: "(H) any information required to be included under the regulations issued under section 15(s).".

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   Original wording

   At the appropriate place, insert the following:

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As printed