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News & Press: Policy News

Advocacy Update: Class Deviation Provides Stability for Federal Contractors

Tuesday, April 14, 2020   (0 Comments)
Posted by: Laura Berry
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Small business contractors rely on a consistent flow of income to be able to continue to serve their federal customers. This has been an issue since a directive encouraging a goal of 15 days for prompt payment of small business contractors expired in 2017. WIPP successfully advocated for a reinstatement of prompt payment to small federal contractors in the FY2020 National Defense Authorization Act (NDAA). This section that is now law, establishes a goal of 15 days for federal agencies to pay small business contractors upon receipt of proper invoice, and implements the same goal for prime contractors to pay small business subcontractors.


Last week, the Civilian Agency Acquisition Council (CAAC) issued a class deviation (effective date April 6), implementing this section of the law. WIPP is thrilled that this development will help provide stability for companies during this time and in the future.

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