48 CFR § 52.242-5 - 52.242-5 Payments to Small Business Subcontractors.

---
identifier: "/us/cfr/t48/s52.242-5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 52.242-5 - 52.242-5   Payments to Small Business Subcontractors."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "52.242-5"
section_name: "52.242-5   Payments to Small Business Subcontractors."
chapter_number: 1
chapter_name: "FEDERAL ACQUISITION REGULATION"
subchapter_number: "H"
subchapter_name: "CLAUSES AND FORMS"
part_number: "52"
part_name: "SOLICITATION PROVISIONS AND CONTRACT CLAUSES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113."
regulatory_source: "48 FR 42478, Sept. 19, 1983, unless otherwise noted."
cfr_part: "52"
---


# 52.242-5 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]