Small Business Subcontracting for Accelerated Payments

Small businesses are invited to serve as fast-pay subcontractors under the Federal Acquisition Regulation clause 52.232-40, which guarantees payment within 15 days of the prime contractor receiving funds. This opportunity is designed to improve cash flow for small businesses by enabling timely compensation upon invoice submission, subject to the prime contractor’s receipt of payment from the government. The solicitation is managed by the Active Devices Division within the Department of Defense and requires submission by July 20, 2026, with a performance location set at New Cumberland, Pennsylvania, 17070-5002. While specific NAICS codes and set-aside details are not provided, the mechanism is structured to prioritize small business participation through accelerated payment terms under a subcontracting arrangement. Participation requires adherence to the terms of FAR 52.232-40 and successful alignment with prime contractors awarded under related government contracts.