Committee backs measure to require interim payments when federal contracts change
The committee advanced HR4615 to require agencies to make interim payments (at least 50% of estimated added costs) to small contractors when government projects change scope; sponsors said the change would protect small firms and subcontractors from cash-flow disruption.
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Representative Stauffer (MN), sponsor of HR4615, described a common scenario in which a government agency changes a project's scope and small contractors are left waiting months for equitable adjustments that cover added labor and materials. "When the federal government directs a small business to perform additional work... that business should not be on the hook for covering the added cost while it waits for payment," he said.
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