Clauses · FAR · Administration and definitions
FAR 52.232-40 Providing Accelerated Payments to Small Business Subcontractors
Does the regulation require it to flow down?
Yes
All subcontracts with small businesses, including commercial, any dollar amount
- Form
- substance, including (c) itself — self-perpetuating
- Reaches
- all tiers, down the small business sub chain
Checked against acquisition.gov on 2026-08-04 · edition Mar 2023 · base v0.9.3 Read the text ↗
What it makes you produce
One item for your checklist.
Nothing to send, ever
There is no paperwork here. It is a rule you follow while you perform the work.
Nothing to hand over. On receipt of an accelerated payment from the Government, the same acceleration passes to your own small business subcontractors as far as practicable, after a proper invoice from them, and with no fee charged for it
FAR 52.232-40(a)
When it is used
All contracts (FAR 32.009-2, no exception and no threshold); the pass-through obligation exists when the sub is a small business.
Read closely
(b) records that the acceleration creates no new right under the Prompt Payment Act, and (c) carries the substance into your own orders with small business concerns, commercial ones included. One tier up, a small subcontractor is the beneficiary of the same paragraph — and what starts the clock there is the prime receiving an accelerated payment from the Government, not the date of your invoice.
The 19 templates that name it, with the line
Source: acquisition.gov, FAR 52.232-40 and FAR 32.009-2 (verified 2026-08-04)
This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.