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  • Question

    Can the Government paid the contractor on a monthly basis or do they have to wait until the year has ended before payment is made. Also what should the Contracting Officer consider when deciding how often a contractor should be paid.


    Answer

    Yes, the government can pay a small business contractor on a monthly basis, especially for services provided.  Cash flow is very important to any business and more so for small businesses.  The contracting officer should consider the schedule, deliverables, and services or products provided by the contractor when deciding how often a contractor should be paid.  See FAR 32 for additional contracting financing information that can be considered as well. 

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