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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.232-40 Providing Accelerated Payments to Small Business Subcontractors.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause requires a prime contractor to pass accelerated payments down to its small business subcontractors within 15 days of receiving accelerated payments from the Government. It matters because it sets a specific timing obligation and prohibits charging subcontractors for the acceleration, and it must be flowed down to small business subcontracts.

Applies to: Prime contractors holding contracts that include this clause and their small business subcontractors

What it requires

  • Within 15 days after receipt of accelerated payments from the Government, make accelerated payments to small business subcontractors to the maximum extent practicable and before payment is otherwise due, after receipt of a proper invoice and all required documentation
  • Make accelerated payments to small business subcontractors without any further consideration from or fees charged to the subcontractor
  • Include the substance of this clause, including paragraph (c), in all subcontracts with small business concerns, including those for commercial products or commercial services

Key terms: accelerated payments · small business subcontractors · proper invoice · Prompt Payment Act · small business concerns

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 32.009-2, insert the following clause:

Providing Accelerated Payments to Small Business Subcontractors (MAR 2023)

(a)(1) In accordance with 31 U.S.C. 3903 and 10 U.S.C. 3801, within 15 days after receipt of accelerated payments from the Government, the Contractor shall make accelerated payments to its small business subcontractors under this contract, to the maximum extent practicable and prior to when such payment is otherwise required under the applicable contract or subcontract, after receipt of a proper invoice and all other required documentation from the small business subcontractor.

(2) The Contractor agrees to make such payments to its small business subcontractors without any further consideration from or fees charged to the subcontractor.

(b) The acceleration of payments under this clause does not provide any new rights under the Prompt Payment Act.

(c) Include the substance of this clause, including this paragraph (c), in all subcontracts with small business concerns, including subcontracts with small business concerns for the acquisition of commercial products or commercial services.

(End of clause)

Sections it refers to

Sections that refer to it

  • 32.009-2 Contract clause.
  • 52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services.
  • 52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).
  • 52.244-6 Subcontracts for Commercial Products and Commercial Services.

← 52.232-39 Unenforceability of Unauthorized Obligations. · 52.233-1 Disputes. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.232-40 Providing Accelerated Payments to Small Business Subcontractors · SpendQuery