Page:United States Statutes at Large Volume 105 Part 2.djvu/468

 105 STAT. 1420 PUBLIC LAW 102-190—DEC. 5, 1991 contractor subject to the provisions of sections 3903(b) and 3905 of title 31, United States Code) furnish with its pay- ment request to the Government proof of payment of the amounts included in such payment request for payments made to subcontractors and suppliers; (iv) evaluating the feasibility and desirability of requiring a prime contractor to establish an escrow account at a federally insured financial institution and requiring direct disbursements to subcontractors and suppliers of amounts certified by the prime contractor in its payment request to the Government as being payable to such subcontractors and suppliers in accordance with their subcontracts; and (v) evaluating the feasibility and desirability of requiring direct disbursement of amounts certified by a prime contractor as being payable to its subcontractors and suppliers in accordance with their subcontracts (using techniques such as joint payee checks, escrow accounts, or direct pay- ment by the Government), if the contracting officer has determined that the prime contractor is failing to make timely payments to its subcontractors and suppliers. (B) Payment protection of subcontractors and suppliers through the use of payment bonds or alternatives methods by— (i) evaluating the effectiveness of the modifications to part 28.2 of the Federal Acquisition Regulation Part 28.2 (48 C.F.R. 28.200) relating to the use of individual sureties, which became effective February 26, 1990; (ii) evaluating the effectiveness of requiring payment bonds pursuant to the Miller Act as a means of affording protection to construction subcontractors and suppliers relating to receiving— (I) timely payment of progress payments due in accordance with their subcontracts; and (II) ultimate payment of such amounts due; (iii) evaluating the feasibility and desirability of increasing the pa3anent bond amounts required under the Miller Act from the current maximum amounts to an amount equal to 100 percent of the amount of the contract; (iv) evaluating the feasibility and desirability of requiring payment bonds for supply and services contracts (other than construction), and, if feasible and desirable, the amounts of such bonds; and (v) evaluating the feasibility and desirability of using letters of credit issued by federally insured financial institutions (or other alternatives) as substitutes for pay- ment bonds in providing payment protection to subcontractors and suppliers on construction contracts (and other contracts). (C) Any evaluation of feasibility and desirability carried out pursuant to subparagraph (A) or (B) shall include the appropriateness of— (i) any differential treatment of, or impact on, small business concerns as opposed to concerns other than small business concerns; (ii) any differential treatment of subcontracts relating to commercial products entered into by the contractor in furtherance of its non-Government business, especially those

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