New FAR Provision Requiring Faster Payment to Subcontractors On Horizon

A proposed rule is scheduled for publication in the Federal Register today that would add a new FAR clause requiring accelerated payments to small business subcontractors. This would implement the temporary policy by the Office of Management and Budget, Policy Memo M-12-16, July 2012. Accelerated payments would be to the "maximum extent possible" and tied to the receipt of "proper invoice and all proper documentation" from the small business subcontractor. The proposed rule is not, however, expected to provide any new rights under the Prompt Payment Act. The proposed rule would seem to be impractical to implement without accelerated payments by the government to the prime contractor, but the effect upon payments remains to be seen, if implemented. Interested persons should provide their comments to the proposed rule within the timeline established upon publication in the Federal Register.

Safety Checklist Being Considered by OSHA Advisory Panel for Federal Projects

OSHA's Advisory Committee on Construction Safety and Health released information at its recent November 28 meeting that it is drafting a proposal that would require construction companies bidding on federal projects to provide details about their safety records and preventative programs, and that they are developing a checklist for that purpose.  The information requested was announced to include: 1) evidence of prior good safety performance such as recordable injury rates and information about citations; 2) attestations regarding OSHA 30 and 10-hour courses for foremen and supervisors; 3) site specific safety plans (past and for the projecting being solicited); 4) establishing a system for workers to report safety and health hazards "without fear of retaliation"; and 5) only hiring subcontractors who can show evidence of active implementation of safety plans. The announced intention is to finalize this and present to the president for his implementation by executive order.  The substance of the final proposal / checklist will remain to be seen, but appears intended for implementation next year. The minutes of the meeting have not yet been posted by ACCSH.