I 

109TH CONGRESS 

1ST SESSION H. R. 2740 

To amend title 31, United States Code, to require the provision of a written 

prompt payment policy to each subcontractor under a Federal contract 

and to require a clause in each subcontract under a Federal contract 

that outlines the provisions of the prompt payment statute and other 

related information. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 26, 2005 

Mr. WYNN introduced the following bill; which was referred to the Committee 

on Government Reform 

A BILL 

To amend title 31, United States Code, to require the provision of a written prompt payment policy to each subcontractor under a Federal contract and to require a clause 

in each subcontract under a Federal contract that outlines the provisions of the prompt payment statute and 

other related information. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Prompt Payment Im5 provement Act of 2005’’. 
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1 SEC. 2. REQUIREMENT TO PROVIDE CERTAIN PROMPT PAY2 MENT INFORMATION TO FEDERAL CONTRAC3 TORS AND SUBCONTRACTORS. 

4 (a) REQUIREMENT TO PROVIDE PROMPT PAYMENT

5 INFORMATION TO SUBCONTRACTORS.—(1) Chapter 39 of 

6 title 31, United States Code, is amended by adding at the 

7 end the following new section: 

8 ‘‘§ 3908. Requirements to provide prompt payment in9 formation to contractors and subcontrac10 tors 

11 ‘‘(a) REQUIREMENT TO PROVIDE PROMPT PAYMENT

12 POLICY TO CONTRACTORS AND SUBCONTRACTORS.—The 

13 Director of Office of Management and Budget shall set 

14 forth in writing the prompt payment policy applicable to 

15 subcontractors under Federal contracts. The head of each 

16 agency shall— 

17 ‘‘(1) provide a copy of such policy to each con18 tractor awarded a contract by the agency; and 

19 ‘‘(2) require the contractor to provide a copy of 

20 the policy to each of its subcontractors under the 

21 contract. 

22 ‘‘(b) CONTRACT CLAUSE.—The head of each agency 

23 shall require each contractor awarded a contract by the 

24 agency to include in each subcontract awarded under the 

25 contract a clause containing the following information: 
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1 ‘‘(1) The requirements and penalties of this 

2 chapter of this title relating to the obligations of the 

3 Federal Government and prime contractors in mak4 ing timely progress payments. 

5 ‘‘(2) The name and phone number of a senior 

6 employee of the contractor who has the authority to 

7 discuss and resolve progress payment questions. 

8 ‘‘(3) The obligations, under section 15(k)(5) of 

9 the Small Business Act (15 U.S.C. 644(k)(5)), of 

10 the Office of Small and Disadvantaged Business 

11 Utilization of the agency in assisting small business 

12 contractors and subcontractors in receiving prompt 

13 progress payments.’’. 

14 (2) The table of sections at the beginning of such 

15 chapter is amended by adding at the end the following 

16 new item: 

‘‘3908. Requirements to provide prompt payment information to contractors 

and subcontractors.’’. 

17 (b) EFFECTIVE DATE.—Section 3908 of title 31, 

18 United States Code, as added by subsection (a), shall take 

19 effect on October 1, 2005 

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