In 2011, the Obama Administration created a program through the Office of Management and Budget (OMB) that required federal agencies to pay small business contractors within 15 days of receipt of relevant documents. The Obama Administration extended the “Accelerating Payments to Small Businesses for goods and Services” program several times, most recently through in OMB Memo M-17-13, which was issued on January 11, 2017, and it is set to expire on December 31.
ACCA is concerned that the Administration has not moved forward with extending this policy, which would hurt ACCA contractor members who perform work for federal agencies by delaying payment.
On December 5, I wrote a letter to the Director of OMB, Mick Mulvaney, requesting the permanent extension of the 15-day payment policy for small businesses. Read the letter here.
If the Trump Administration does not renew this policy, contractors would have less cash flow and increased debt burdens, because they would be waiting longer periods of time for the federal government to pay them. At a time when the Trump Administration is working to streamline government operations, this should be one of the programs that remain in place.
ACCA is taking action to protect this important program and will continue to fight for ACCA’s commercial contractors.