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Introduction

Federal Contracting Prompt Payment – Small Business Class Deviation February 14 , 2013 Midwest SBLO Meeting. Introduction. Presented by Ray Suennen Governmental Contracts Compliance Coordinator Integrys Energy Services, Inc RFSuennen@integrysenergy.com. FAR 52.232-99.

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Introduction

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  1. Federal Contracting Prompt Payment – Small BusinessClass DeviationFebruary 14, 2013Midwest SBLO Meeting

  2. Introduction Presented by Ray Suennen Governmental Contracts Compliance Coordinator Integrys Energy Services, Inc RFSuennen@integrysenergy.com

  3. FAR 52.232-99 New FAR Clauses: 52.232-99 Providing Accelerated Payments to Small Business Subcontractors Implements the temporary policy provided by Office of Management and Budget (OMB) Policy Memorandum M-12-16, Providing Prompt Payment to Small Business Subcontractors, dated July 11, 2012 Applies to goods and services

  4. FAR 52.232-99 Providing Accelerated Payments to Small Business Subcontractors – the Order “The Executive Branch policy that, to the full extent permitted by law, agencies shall make their payments to small business contractors as soon as practicable, with the goal of making payments within 15 days” of receipt of relevant documents.

  5. FAR 52.232-99 Providing Accelerated Payments to Small Business Subcontractors (Jul 2012) (Deviation) The FAR 52.232-99 Clause (a) Upon receipt of accelerated payments from the Government, the contractor is required to make accelerated payments to small business subcontractors to the maximum extent practicable after receipt of a proper invoice and all proper documentation from the small business subcontractor.

  6. FAR 52.232-99 Accelerated Payments to Small Business Subcontractors (Jul 2012) (Deviation) The FAR 52.232-99 Clause (b) Include the substance of this clause, including this paragraph (b), in all subcontracts with small business concerns. This is a flow down clause including to small businesses.

  7. FAR 52.232-99 Providing Accelerated Payment to Small Business Subcontractors Goal of accelerated payments; - improves the cash flow for small businesses - increases liquidity - unlocks capital for the purposes of investment and growth - increases Small Business participation in Federal contracting

  8. FAR 52.232-99 Providing Accelerated Payment to Small Business Subcontractors Effective date; July 11, 2012 Expiration date: July 10, 2013 The FAR Council is undertaking rulemaking and public comments to further implement OMB’s policy Does this mean it is likely to be permanent?

  9. FAR 52.232-99 Providing Accelerated Payment to Small Business Subcontractors As of February 11, 2013, FAR 52.232-99 is not posted on the Government’s FAR website As of the January 1, 2013 CCH FAR publication, it is not included

  10. FAR 52.232-99 Providing Accelerated Payment to Small Business Subcontractors FAR 1.404, Class Deviations Allows for immediate implementation for a broad class of contracts FAR 1.108(d)(3) Application of FAR changes to solicitations and contracts - Contracting Officer may, at their discretion, include the changes in any existing contract with appropriate consideration

  11. FAR 52.232-99 Providing Accelerated Payment to Small Business Subcontractors Appropriate consideration does not have to be bilateral agreed to Agencies should, to the full extent permitted by law, temporarily accelerate payments to all prime contractors, in order to allow them to provide prompt payments to small business subcontractors

  12. FAR 52.232-99 Providing Accelerated Payment to Small Business Subcontractors Is this a first step by the Government to redefine the “Prompt Payment Act” on a permanent basis, by creating a new and separate category for small businesses? prompt payments to small business subcontractors – 15 days ???

  13. FAR 52.232-99 Providing Accelerated Payment to Small Business Subcontractors • How will the appropriate persons in your company know if your company is receiving accelerated payments? If your company does receive accelerated payments, • how will your company monitor which small business subcontractors should receive accelerated payments? • Are the Small Business Subcontractors actually receiving accelerated payments?

  14. Summary What are your questions and comments?

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