[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3700 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3700

 To amend title 31, United States Code, to require the provision of a 
  written prompt payment policy to each subcontractor under a Federal 
 contract and to require a clause in each subcontract under a Federal 
contract that outlines the provisions of the prompt payment statute and 
                       other related information.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 21, 1998

   Mr. Wynn introduced the following bill; which was referred to the 
              Committee on Government Reform and Oversight

_______________________________________________________________________

                                 A BILL


 
 To amend title 31, United States Code, to require the provision of a 
  written prompt payment policy to each subcontractor under a Federal 
 contract and to require a clause in each subcontract under a Federal 
contract that outlines the provisions of the prompt payment statute and 
                       other related information.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prompt Payment Improvement Act of 
1998''.

SEC. 2. REQUIREMENT TO PROVIDE CERTAIN PROMPT PAYMENT INFORMATION TO 
              FEDERAL CONTRACTORS AND SUBCONTRACTORS.

    (a) Requirement To Provide Prompt Payment Information to 
Subcontractors.--(1) Chapter 39 of title 31, United States Code, is 
amended by adding at the end the following new section:
``Sec. 3908. Requirements to provide prompt payment information to 
              contractors and subcontractors
    ``(a) Requirement To Provide Prompt Payment Policy to Contractors 
and Subcontractors.--The Director of Office of Management and Budget 
shall set forth in writing the prompt payment policy applicable to 
subcontractors under Federal contracts. The head of each agency shall--
            ``(1) provide a copy of such policy to each contractor 
        awarded a contract by the agency; and
            ``(2) require the contractor to provide a copy of the 
        policy to each of its subcontractors under the contract.
    ``(b) Contract Clause.--The head of each agency shall require each 
contractor awarded a contract by the agency to include in each 
subcontract awarded under the contract a clause containing the 
following information:
            ``(1) The requirements and penalties of this chapter of 
        this title relating to the obligations of the Federal 
        Government and prime contractors in making timely progress 
        payments.
            ``(2) The name and phone number of a senior employee of the 
        contractor who has the authority to discuss and resolve 
        progress payment questions.
            ``(3) The obligations, under section 15(k)(5) of the Small 
        Business Act (15 U.S.C. 644(k)(5)), of the Office of Small and 
        Disadvantaged Business Utilization of the agency in assisting 
        small business contractors and subcontractors in receiving 
        prompt progress payments.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``3908. Requirements to provide prompt payment information to 
                            contractors and subcontractors''.
    (b) Effective Date.--Section 3908 of title 31, United States Code, 
as added by subsection (a), shall take effect on October 1, 1998.
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