Full and Open Acquisition, in practice

FAR clauses/Part 32/Checked 15 Sep 2026

FAR 52.232-40
Providing Accelerated Payments to Small Business Subcontractors

Clause date
MAR 2023
Prescribed at
FAR 32.009-2. Insert in all solicitations and contracts.
Applies to
All contracts, regardless of type or dollar value.
Flowdown
Flows down in some subcontracts
52.232-40(c) requires the substance of the clause, including paragraph (c), in all subcontracts with small business concerns, including subcontracts with small business concerns for commercial products or commercial services. Also listed in 52.212-5(e)(1) and 52.244-6(c)(1).
Full text
FAR 52.232-40 on Acquisition.gov

… In accordance with 31 U.S.C. 3903 and 10 U.S.C. 3801, within 15 days after receipt of accelerated payments from the Government, the Contractor shall make accelerated payments to its small business subcontractors under this contract, to the maximum extent practicable and prior to when such payment is otherwise required under the applicable contract or subcontract, after receipt of a proper invoice and all other required documentation from the small business subcontractor. …

From the clause · Codified FAR · FAC 2026-01

Why it matters: The 15-day pass-through applies only to the maximum extent practicable, may not be conditioned on fees or other consideration, and paragraph (b) says it creates no new rights under the Prompt Payment Act.

This is the codified text, not any agency's Revolutionary FAR Overhaul deviation. An agency running a class deviation may have this clause renumbered, rewritten or prescribed differently — check the deviation before you put a clause in a solicitation.

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