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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.

  1. 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
76CORPDOC 2A — FAR/DFARS Flowdown Provisions for Commercial Products/Services under a DoD Prime ContractLockheed Martinline 123143CORPDOC 3A — FAR/DFARS Flowdown Provisions for Fixed Price Non-Commercial Items under a DoD Prime ContractLockheed Martinline 252155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 282233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 63351Raytheon TC-001 — General Terms and Conditions of PurchaseRTXline 504105Raytheon TC-002 — Supplement 1: Government Contract Provisions from the FARRTXline 106166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 232969Northrop Grumman CTM-P-ST-002 — U.S. Government FFP or T&M Order for Commercial Products and ServicesNorthrop Grummanline 2370166Northrop Grumman CTM-P-ST-003 — U.S. Government T&M Order (Not for Commercial Products and Services)Northrop Grummanline 2271168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 2370255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 1072243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 2109122GD Mission Systems SCM-TMP-095 — FFP Purchase Orders for Commercial/COTS Products or Services in Support of a U.S. Government ContractGeneral Dynamicsline 1025240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 1894106L3Harris LGL-50.F2 — General T&C and Flowdown Clauses for Commercial Products/Services under a U.S. Government ContractL3Harrisline 1634273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 394107Honeywell — Supplemental Provisions Under Fixed Price U.S. Government Contracts for Commercial ItemsHoneywellline 44189AAR Government Services — C40 Purchase Order General Provisions, Non-Commercial Firm Fixed Price Items or ServicesAAR Corpline 314178AAR Component Services NY — U.S. Government Contract FAR and DFARS Clauses Incorporated by ReferenceAAR Corpline 1547

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.