DOD Slows Contract Payments To Save For Sequester

Law360, New York (February 25, 2013, 6:51 PM EST) -- The U.S. Department of Defense on Monday scaled back its policy of accelerating payments to contractors, seeking to build up cash reserves in the week before it is hit by the automatic spending cuts of sequestration.

The department had been accelerating its payments to all prime contractors, while using contract terms to encourage prime contractors to quickly pass along funds to their small business subcontractors, since October. While that policy was initially supposed to last for a full year, the agency reversed course, reverting to an...
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