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The Revolutionary FAR Overhaul has published a revised version of this clause. The RFO version supersedes the eCFR text below for contracts using the RFO model; see the RFO deviation for applicability.
52.242-5 Payments to Small Business Subcontractors.
As prescribed in 42.1504, insert the following clause:
Payments to Small Business Subcontractors (JAN 2017)
(a)
Definitions.
As used in this clause—
Reduced payment
means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor.
Untimely payment
means a payment that is more than 90 days past due under the terms and conditions of a subcontract, for supplies and services for which the Government has paid the prime contractor.
(b)
Notice.
The Contractor shall notify the Contracting Officer, in writing, not later than 14 days after—
(1) A small business subcontractor was entitled to payment under the terms and conditions of the subcontract; and
(2) The Contractor—
(i) Made a reduced or untimely payment to the small business subcontractor; or
(ii) Failed to make a payment, which is now untimely.
(c)
Content of notice.
The Contractor shall include the reason(s) for making the reduced or untimely payment in any notice required under paragraph (b) of this clause.
(End of clause)
[81 FR 93488, Dec. 20, 2016]
42.1504
Insert the clause at 52.242-5, Payments to Small Business Subcontractors, in all solicitations and contracts containing the clause at 52.219-9, Small Business Subcontracting Plan.
Prescription data sourced from eCFR as of 2026-06-10 03:16 UTC.
Cross-references within the prescription are not resolved automatically.
Regulatory Stack
The layers of regulation that govern this clause, from the FAR prescription through agency-specific supplements and any active deviations.
RFORFO VersionOverhauled clause text
The Revolutionary FAR Overhaul publishes a revised version of this clause. See the RFO Version tab for the controlling authority under the RFO model.
Insert the clause at 52.242-5, Payments to Small Business Subcontractors, in all solicitations and contracts containing the clause at 52.219-9, Small Business Subcontracting Plan.
Version history is sourced from the codified eCFR. Changes published only as class deviations or by the Revolutionary FAR Overhaul do not appear here until they are incorporated into the eCFR. For RFO-driven changes see the RFO Version tab and any active deviations cited above.
No version history available from eCFR.
RFO Version
Comparison of the codified eCFR text against the Revolutionary FAR Overhaul revision. Highlights show additions (green) and deletions (red, struck through).
Clause Text
Substantive changes. The RFO version differs materially from the eCFR text.
eCFR (codified)
RFO (implemented)
Unchanged
52.242-5 Payments to Small Business Subcontractors.
eCFR (codified)
RFO (implemented)
1 added, 1 removed
As prescribed in 42.1504, insert the following clause:
As prescribed in 42.1104, insert the following clause:
Payments to Small Business Subcontractors (JAN 2017)
Payments to Small Business Subcontractors (Jan 2017)
(a)
(a)
Definitions.
As used in this clause—
(a)
(a) Definitions . As used in this clause-
Reduced payment
means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor.
Reduced payment means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor.
Untimely payment
means a payment that is more than 90 days past due under the terms and conditions of a subcontract, for supplies and services for which the Government has paid the prime contractor.
Untimely payment means a payment that is more than 90 days past due under the terms and conditions of a subcontract, for supplies and services for which the Government has paid the prime contractor.
(b)
(b)
Notice.
The Contractor shall notify the Contracting Officer, in writing, not later than 14 days after—
(b)
(b) Notice . The Contractor shall notify the Contracting Officer, in writing, not later than 14 days after-
(1)
(1) A small business subcontractor was entitled to payment under the terms and conditions of the subcontract; and
(1)
(1) A small business subcontractor was entitled to payment under the terms and conditions of the subcontract; and
(2)
(2) The Contractor—
(2)
(2) The Contractor-
(i)
(i) Made a reduced or untimely payment to the small business subcontractor; or
(i)
(i) Made a reduced or untimely payment to the small business subcontractor; or
(ii)
(ii) Failed to make a payment, which is now untimely.
(ii)
(ii) Failed to make a payment, which is now untimely.
(c)
(c)
Content of notice.
The Contractor shall include the reason(s) for making the reduced or untimely payment in any notice required under paragraph (b) of this clause.
(c)
(c) Content of notice . The Contractor shall include the reason(s) for making the reduced or untimely payment in any notice required under paragraph (b) of this clause.
(End of clause)
(End of clause)
6 removed
[81 FR 93488, Dec. 20, 2016]
Prescription
No substantive changes. The RFO prescription is identical to the eCFR prescription.