Feds Target Late Subcontractor Payments In New RuleJanuary 19, 2016 – In The News
Nicholas T. Solosky was featured in the Law360 article, “Feds Target Late Subcontractor Payments In New Rule” Full text can be found in the January 19, 2016, issue, but a synopsis is below.
New rules proposed by the Pentagon, NASA and the General Services Administration will require prime contractors to report when late or short payments and given to subcontractors. The agencies are aiming to increase participation of small businesses in government contract space.
Fox Rothschild’s Nicholas T. Solosky said the rule builds off of recent regulatory initiatives to increase the utilization of small businesses in the contracting world. According to Solosky, it also reflects recognition on the part of the government that small subcontractors can’t wait months to get paid in the same way large businesses can.
“They can’t sustain the same type of delay,” he said.