accelerated payments

Accelerated Payments Policies Extended

An extension was granted until the end of 2017 on a government policy to promptly pay small business contractors. In a memorandum earlier this year, the Office of Management and Budget (OMB) ordered to extend the popular policy and provide additional assistance to agencies on implementing accelerated payments policies.

Originally, the OMG Memorandum M-11-32 generated in 2011, specified to permit by law, to make efforts to pay small business contractors with the goal to make payments within 15 days of receipt of invoice. This original memorandum did not include an expiration date.

By the summer of 2012, OMB stepped up with Memorandum M-12-16 which established a goal of paying all prime contractors within 15 days of reviewing documentation. This memorandum was intended to be temporary and was extended through December 31. 2016. Later requirements included that agencies provide six-month reports on progress of meeting goals, only to be decreased to a frequency of three months.

This year, the memorandum M-17-13 extends the temporary policy until December 2017. Additional updates include the three-month reporting requirements to track progress of accelerated payments to small business contractors.

This is welcome news for small business contractors who rely heavily on prompt payments for their cash flow. Supporting small business has been a long time priority of sitting Administrations, hopefully it will again be supported by both sides of the aisle.   If you have questions about accelerated payment policies, contact Duncan and Company.


KDuncan & Company is dedicated to providing knowledge and support for small government contractors about concerns regarding government contracting. For questions on areas such as as cost proposals, accounting systems, DCAA compliance, and incurred cost audits, reach out to KDuncan & Company.

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