The American Subcontractors Association ttold the General Services Administration that the association supports the agency’s proposal to require federal contracting officials to evaluate federal prime contractors on the timeliness of their payments to subcontractors, and called on GSA to strengthen its proposal to make such information about late payments available to the public
“The proposed modification … with its specific reference to ‘late or nonpayment to subcontractors’ among the matters required to be evaluated constitutes, for ASA and its members, a very substantial improvement of the current FAR provision, which is silent with regard to a prime contractor’s performance with respect to the payment of its subcontractors. ASA suggests that the [proposal] … could be further enhanced,” ASA wrote.
Under the proposed rule, for the first time, contract performance assessments performed by government personnel would include an evaluation of the prime contractor’s performance relating to its payment of subcontractors and suppliers. “Many have worked hard over many years to educate policymakers for the federal procurement system that payment protections for subcontractors and suppliers are necessary if projects are to be completed on-time, on-budget, and to a performance level that meets or exceeds the contract standards,”
ASA Executive Vice President E. Colette Nelson explained. “It only makes good business sense for the taxpayers, as well as the subcontractor that wants to do the best possible job for its own government.” ASA proposed additional changes to the Federal Acquisition Regulation that would make the evaluations of payments to subcontractors public through the Federal Awardee Performance and Integrity Information System (FAPIIS). “Public access to such performance information regarding payment will not disadvantage prospective prime contractors in their competition to be awarded a prime contract,” ASA wrote. “Access to such information will, however, provide prospective subcontractors with essential cash-flow information when they are pricing their subcontract proposals to the competing prime contractors. … Such information will permit the prospective subcontractors to make the very best offer. This will result in cost benefits to the buying agency and ultimately the taxpayers.” Read More.