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

FAR 52.242-5 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 notify the Contracting Officer in writing within 14 days after making a reduced or untimely payment to a small business subcontractor, or after failing to make a payment that has become untimely. The notice must explain the reason for the reduced or untimely payment. It matters because it enforces prompt reporting of payment problems to small business subcontractors.

Applies to: Prime contractors with small business subcontractors

What it requires

  • Notify the Contracting Officer in writing not later than 14 days after a small business subcontractor was entitled to payment and the contractor made a reduced or untimely payment or failed to make a payment that is now untimely.
  • Include the reason(s) for making the reduced or untimely payment in the notice.

Key terms: Reduced payment · Untimely payment · Small business subcontractor · Contracting Officer

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

The text

As prescribed in 42.1504, insert the following clause:

Payments to Small Business Subcontractors (JAN 2017)

(a) Definitions. As used in this clause—

Reduced payment means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor.

Untimely payment means a payment that is more than 90 days past due under the terms and conditions of a subcontract, for supplies and services for which the Government has paid the prime contractor.

(b) Notice. The Contractor shall notify the Contracting Officer, in writing, not later than 14 days after—

(1) A small business subcontractor was entitled to payment under the terms and conditions of the subcontract; and

(2) The Contractor—

(i) Made a reduced or untimely payment to the small business subcontractor; or

(ii) Failed to make a payment, which is now untimely.

(c) Content of notice. The Contractor shall include the reason(s) for making the reduced or untimely payment in any notice required under paragraph (b) of this clause.

(End of clause)

Sections it refers to

Sections that refer to it

  • 19.704 Subcontracting plan requirements.
  • 42.1504 Contract clause.
  • 52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services.
  • 52.219-9 Small Business Subcontracting Plan.

← 52.242-4 Certification of Final Indirect Costs. · 52.242-6-52.242-12 [Reserved] →

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 52.242-5 Payments to Small Business Subcontractors · SpendQuery