Since 2012, Defense contractors have been experiencing faster payments through an initiative called Quick Pay. In an effort to ease Defense Contractor cash flow challenges, the government paid approved invoices as soon as the bill was verified rather than holding on to the payment for 30 days.
According to a recent article published by Federal Times, Pentagon officials are now more worried about their own cash flow. The looming sequestration and current continuing resolution have created a situation where DoD only has 2-4 days of cash available rather than the typical 7 days. Defense contractors impacted by the new payment policy will be contacted as soon as this week.
Read more stories about the impacts of sequestration and Defense budgets at www.federaltimes.com.