52.242-5 Payments to Small Business Subcontractors.
As prescribed in 42.1504 , insert the following clause:
Payments to Small Business Subcontractors (Jan 2017)
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(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.
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(b) Notice. The Contractor shall notify the Contracting Officer, in writing, not later than 14 days after-
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(1) A small business subcontractor was entitled to payment under the terms and conditions of the subcontract; and
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(2) The Contractor-
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(i) Made a reduced or untimely payment to the small business subcontractor; or
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(ii) Failed to make a payment, which is now untimely.
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(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)