Sec. 850. Payment of subcontractors
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/bill/118/s/2226/es/section-850A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 8(d)(13) of the Small Business Act ( 15 U.S.C. 637(d)(13) ) is amended— in subparagraph (B)(i), by striking 90 days and inserting 30 days ; in subparagraph (C)— by striking contractor shall and inserting contractor— shall ; in clause (i), as so designated, by striking the period at the end and inserting ; and ; and by adding at the end the following: may enter or modify past performance information of the prime contractor in connection with the unjustified failure to make a full or timely payment to a subcontractor subject to this paragraph before or after close-out of the covered contract. . in subparagraph (D), by striking subparagraph
(E)and inserting subparagraph
(F); by redesignating subparagraph
(E)as subparagraph (F); and by inserting after subparagraph
(D)the following”: Once a contracting officer determines, with respect to the past performance of a prime contractor, that there was an unjustified failure by the prime contractor on a covered contract to make a full or timely payment to a subcontractor covered by subparagraph
(B)or (C), the prime contractor is required to cooperate with the contracting officer, who shall consult with the Director of Small Business Programs or the Director of Small and Disadvantaged Business Utilization acting pursuant to section 15(k)(6) and other representatives of the Government, regarding correcting and mitigating the unjustified failure to make a full or timely payment to a subcontractor. The duty of cooperation under this subparagraph for a prime contractor described in clause
(i)continues until the subcontractor is made whole or the determination of the contracting officer determination is no longer effective, and regardless of performance or close-out status of the covered contract. .