52.232-14
Notice of Availability of Progress Payments Exclusively for Small Business Concerns
Only small business concerns may receive progress payments under this clause, and non-small business bids conditioned on such payments will be rejected as nonresponsive.
Overview
FAR 52.232-14 notifies bidders that progress payments are available exclusively to small business concerns in certain solicitations. If both small and other businesses may bid, but only small businesses would require progress payments, this provision must be included in the solicitation. The clause makes clear that only small business bidders are eligible for progress payments, and any bid from a non-small business that is conditioned on receiving progress payments will be deemed nonresponsive and rejected. This ensures that the progress payment mechanism is used as an incentive and support tool for small businesses, not for larger firms.
Key Rules
- Progress Payments for Small Businesses Only
- Only small business concerns are eligible to receive progress payments under this provision.
- Bid Conditions for Non-Small Businesses
- Any bid from a non-small business that requires progress payments will be rejected as nonresponsive.
Responsibilities
- Contracting Officers: Must include this provision in solicitations when both small and other businesses may bid, but only small businesses would need progress payments; must reject non-small business bids conditioned on progress payments.
- Contractors: Small businesses may bid with the expectation of progress payments; non-small businesses must not condition their bids on receiving progress payments.
- Agencies: Ensure compliance with small business support policies and proper application of progress payment eligibility.
Practical Implications
- This clause exists to support small businesses by providing them with access to progress payments, which can improve cash flow during contract performance.
- Contractors must carefully review solicitation provisions to avoid submitting nonresponsive bids.
- Common pitfalls include non-small businesses conditioning bids on progress payments, leading to automatic rejection.