Pentagon Scales Back Covid Era Fast-Track Contractor Funds
- Accelerated payments to prime contractors end for new jobs
- Small businesses will retain speedier rate for new contracts
The Pentagon building in Arlington, Virginia.
Photographer: Tom Brenner/BloombergThis article is for subscribers only.
The Pentagon is scaling back a Covid-era program that sped up more than $8 billion in payments to top defense contractors, the department announced Monday.
After July 7, contracts issued to the major defense manufacturers will revert to pre-Covid payment schedules, the Pentagon said. The change won’t apply to existing contracts, and small businesses will continue to receive expedited payments.