rjc1692 Posted January 21, 2010 Report Share Posted January 21, 2010 My company is a subcontractor providing services to a prime under a contract with Government. The prime is considerably overdue in settlement of its invoices (by a period of months not days) and has given no reason for its failure to do so. My company is concerned that the prime has failed to invoice Government and may be insolvent. Is there any means of compelling the prime to make payment to its subs (other than normal debt collection procedures)? Alternatively, is there any means of approaching Government for payment to be made direct to the subs? Any and all advice welcomed. Thank you in advance. Link to comment Share on other sites More sharing options...
leo1102 Posted January 21, 2010 Report Share Posted January 21, 2010 My company is a subcontractor providing services to a prime under a contract with Government. The prime is considerably overdue in settlement of its invoices (by a period of months not days) and has given no reason for its failure to do so. My company is concerned that the prime has failed to invoice Government and may be insolvent. Is there any means of compelling the prime to make payment to its subs (other than normal debt collection procedures)? Alternatively, is there any means of approaching Government for payment to be made direct to the subs? Any and all advice welcomed. Thank you in advance. The Government does not have a contract with a subcontractor and therefore can not make direct payment to the subcontractor. You can contact the contracting officer or contract specialist of the prime contract and inform them of the situation. I doubt if the contracting officer or contract specialist will provide prime contractor invoicing information to you. Have you contacted your local small business administration or an attorney? Have you considered litigation in small claims court or placing a lien on their property or a notice to owner, if applicable in your location? Link to comment Share on other sites More sharing options...
napolik Posted January 21, 2010 Report Share Posted January 21, 2010 My company is a subcontractor providing services to a prime under a contract with Government. The prime is considerably overdue in settlement of its invoices (by a period of months not days) and has given no reason for its failure to do so. My company is concerned that the prime has failed to invoice Government and may be insolvent. Is there any means of compelling the prime to make payment to its subs (other than normal debt collection procedures)? Alternatively, is there any means of approaching Government for payment to be made direct to the subs? Any and all advice welcomed. Thank you in advance. Is the prime contract for a commercial or noncommercial product or service? If the answer is "noncommercial", take a look at FAR 32.112. Also, see the definition of "Commerial Item" at FAR 2.101. If you do not know, the answer, I suggest you call the contracting officer and ask the question. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted January 21, 2010 Report Share Posted January 21, 2010 The subcontract need not be for a noncommercial item in order for the subcontractor to take advantage of FAR 32.112. Link to comment Share on other sites More sharing options...
leo1102 Posted January 22, 2010 Report Share Posted January 22, 2010 The Government does not have a contract with a subcontractor and therefore can not make direct payment to the subcontractor. You can contact the contracting officer or contract specialist of the prime contract and inform them of the situation. I doubt if the contracting officer or contract specialist will provide prime contractor invoicing information to you. Have you contacted your local small business administration or an attorney? Have you considered litigation in small claims court or placing a lien on their property or a notice to owner, if applicable in your location? rjc1602: I was wrong in my thinking regarding whether the contracting officer will disclose invoice information. IAW FAR 32.112-2 -- Subcontractor Requests for Information. (a) In accordance with Section 806(a)(1) of Pub. L. 102-190, as amended by Sections 2091 and 8105 of Pub. L. 103-355, upon the request of a subcontractor or supplier under a Federal contract for a non-commercial item, the contracting officer shall promptly advise the subcontractor or supplier as to -- (1) Whether the prime contractor has submitted requests for progress payments or other payments to the Federal Government under the contract; and (2) Whether final payment under the contract has been made by the Federal Government to the prime contractor. Link to comment Share on other sites More sharing options...
rjc1692 Posted January 22, 2010 Author Report Share Posted January 22, 2010 Thanks to all who've offered advice - much appreciated. I will check out the FAR references you have directed me to and will report back if I have any success. Link to comment Share on other sites More sharing options...
joel hoffman Posted January 22, 2010 Report Share Posted January 22, 2010 Thanks to all who've offered advice - much appreciated. I will check out the FAR references you have directed me to and will report back if I have any success. Is this a service contract? Link to comment Share on other sites More sharing options...
rjc1692 Posted January 26, 2010 Author Report Share Posted January 26, 2010 Is this a service contract? Joel - yes it is: services include R&D and manufacture of products. Does this make a difference? Link to comment Share on other sites More sharing options...
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