Are you wondering why the Government isn't paying small businesses by using existing streamlined methods like the Governmentwide Commercial Purchase Card (GPC)? The clause that allows for payment using the GPC isn't getting into contract actions! In FY2022, of the $8.7B obligated to small businesses on simplified acquisitions (those over $10,000 and at/below $250,000) only 0.69% of those contact actions included the clause FAR 52.232-36, Payment by Third Party (third party = the issuing bank for an agency's GPC).
(NOTE: Source data is USAspending.gov and includes only new contract actions awarded to SBs >$10,000 and <=$250,000 awarded using Simplified Acquisition Procedures)
Getting payments into the hands of small businesses faster is a win for the agency and for small businesses. With the recent FAR rule requiring agencies to accelerate payments to certain small businesses with a goal of 15 days, agencies should consider using the GPC as the primary payment method for low-risk recurring, routine, and one-time payments.
(Reference FAR Final Rule 2023-02 Accelerated Payments Applicable to Contracts with Certain Small Business Concerns: https://www.federalregister.gov/documents/2023/02/14/2023-02425/federal-acquisition-regulation-accelerated-payments-applicable-to-contracts-with-certain-small)
Agency CFOs, finance personnel, COs/KOs, Contracting Officer's Representatives (CORs), Agency/Organization Program Coordinators, and Legal Counsel...let's start the discussion!
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