Small Business Payment for Performance Act of 2022

Small Business Payment for Performance Act of 2022

This bill allows a small business that is awarded a construction contract by a federal agency to request an equitable adjustment if the agency's contracting officer directs a change in the contract's performance without the agreement of the small business.

The agency must provide the small business with an interim partial payment to cover additional costs resulting from such a change, and the small business must pay a first tier subcontractor or supplier the portion of the partial payment that is attributable to additional costs incurred due to the change.

Bill 117 hr 8273, also known as the Small Business Payment for Performance Act of 2022, aims to address the issue of delayed payments to small businesses by federal agencies for goods and services provided. The bill seeks to ensure that small businesses are paid in a timely manner for their work, which can help improve cash flow and overall financial stability for these businesses.

The key provisions of the bill include establishing a requirement for federal agencies to pay small businesses within 15 days of receiving an invoice for goods or services rendered. This quick turnaround time is intended to prevent small businesses from experiencing financial strain due to delayed payments.

Additionally, the bill includes measures to hold federal agencies accountable for late payments by requiring them to report on their payment practices to Congress. This transparency is meant to encourage agencies to prioritize timely payments to small businesses. Overall, the Small Business Payment for Performance Act of 2022 aims to support small businesses by ensuring they receive prompt payment for their work, ultimately helping to strengthen the small business sector and promote economic growth.