DOD Contracting: Techniques to Ensure Timely Payments to Subcontractors
NSIAD-93-136
Published: May 28, 1993. Publicly Released: May 28, 1993.
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Highlights
Pursuant to a legislative requirement, GAO provided information on: (1) statutory and regulatory provisions that provide for timely payments to subcontractors working on federal contracts; and (2) whether additional proposed payment protections for subcontractors were needed and reasonable.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should issue policies and procedures for: (1) identifying the circumstances under which contracting officers should take action to provide payment protection for subcontractors; and (2) implementing appropriate payment protection techniques. |
DOD has issued a policy memorandum restating and emphasizing contractor officer responsibilities concerning subcontractor payment problems. Additional steps are being taken to highlight that information in a Defense Acquisition Circular and ensure it is addressed in training courses and the Contract Administration Manual.
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Topics
Construction contractsContract administrationContract progress paymentsContractor paymentsDefense procurementFederal procurementLate paymentsPrime contractorsSubcontractorsPayment bonds