Hagedorn Amendment to Help Small Businesses Included in Passage of NDAA

Statement

Today, the House passed H.R. 2500, the "National Defense Authorization Act for Fiscal Year 2020 (NDAA)," by a vote of 377-48. Rep. Jim Hagedorn (MN-01) voted "yea."

Included in the final version of the legislation was an amendment authored by Rep. Hagedorn to help small businesses by directing federal agencies to pay small contractors faster, easing the financial burden and costs of unpredictable payments.

The amendment codifies a requirement that agencies pay contractors within a goal of 15 days after receiving proper invoice. Codifying this payment schedule will prevent tampering by future administrations and give small contractors a level playing field with federal contracts.

"Small businesses depend on access to steady cash flow. Inconsistent and delayed payments can result in unpaid employees and stifle the growth of small businesses and the creation of new jobs. Assurance of timely payments helps small businesses to flourish and engage in federal contracts. This stability also encourages new vendors to join the federal marketplace -- increasing competition and reducing the burden on taxpayers," said Hagedorn.

The full text of the amendment can be found on pages 2,926 and 2,927 of the NDAA Conference Report.

Source