Subcontractor Payment Protection Act

Summary

Subcontractor Payment Protection Act - Directs the Secretary of Defense to require a small business prime contractor under a defense contract to submit to each first tier subcontractor: (1) a notification of a submission to the Department of Defense (DOD) of requests for progress payments covering work of the subcontractor; or (2) a notification of payment terms between DOD and the prime contractor, and between the prime contractor and the subcontractor. Requires the prime contractor to notify the subcontractor of disputed amounts withheld from payment by the prime contractor and of actions that should be taken by the subcontractor to receive such payment. Requires such notifications to be made by the prime contractor before receiving final payment from DOD. Requires the prime contractor to submit a copy of such notification to DOD. Requires access by DOD to the terms of any contract entered into by a prime contractor with a first tier subcontractor. Prohibits the Secretary from making any progress payment to a small business prime contractor until such prime contractor submits to the Secretary a certification of all proper subcontractor payments up to such date. Allows a first progress payment to be made before such certifications are required. Requires the Secretary to prescribe regulations requiring each DOD contracting office to immediately provide, upon the request of a first tier subcontractor, information relating to payments made by DOD to the prime contractor that cover work carried out by such subcontractor. Directs the Comptroller General to study and report to the Congress on payment terms and actual payment practices under defense contracts between prime contractors and first tier subcontractors.

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2 official files

• Introduced in House (text)

  Introduced in House · EN

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 25 April 1991

  Open at official source

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