I

106TH CONGRESS

1ST SESSION H. R. 1208

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

MARCH 18, 1999

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 1999’’.
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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, 1999.

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