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DOD Contracting: Techniques to Ensure Timely Payments to Subcontractors

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Report Type Reports and Testimonies
Report Date May 28, 1993
Report No. NSIAD-93-136
Subject
Summary:

Subcontractors depend on cash flow generated by progress or other periodic payments from prime contractors to meet payrolls and pay other bills. This report focuses on whether federal prime contractors are paying subcontractors promptly, a significant issue given that payments to subcontractors sometimes constitute well over 50 percent of prime contract costs. This report (1) identifies existing statutory and regulatory provisions that provide payment protection for federal subcontractors and (2) evaluates the feasibility and desirability of additional payment protections for subcontractors.

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