The White House has extended its existing policy urging federal agencies to accelerate payments to all prime contractors so that the primes can pay small business subcontractors promptly.

Under a July 11, 2012 memo from the Office of Management and Budget (OMB), agencies were asked to temporarily accelerate payments to prime contractors with the goal of paying within 15 days of receipt of proper invoices.

That policy was set to expire on July 11. Under the new memo, that policy will be extended until July 11, 2014, Steven VanRoekel, acting deputy director for management, wrote in the new memo.

“This extension will allow OMB and agencies to continue to evaluate the impact of accelerated payment on small business subcontractors,” VanRoekel wrote.

The Federal Acquisition Regulatory Council also will solicit public input for longer-term strategies for cash flow.

More information: OMB memo http://goo.gl/oeyTE