DOD Payments to Small Businesses: Implementation and Effective Utilization of Electronic Invoicing Could Further Reduce Late Payments

Abstract

The National Defense Authorization Act for Fiscal Year 2004 requires GAO to report on the timeliness of Department of Defense (DOD) payments made to small businesses. GAO's report focuses on (1) whether, at DOD payment centers for which data were available, small business invoices were more likely to be paid late; (2) whether systemic weaknesses in DOD payment processes result in late payments to contractors--including small business contractors; and (3) the impact of late payments on small businesses. To calculate timeliness rates, GAO used the data DOD was able to provide for 9 of its 20 vendor payment locations as well as its one contract pay location. GAO used a case study approach for the third objective because data limitations did not permit the use of statistically reliable sampling techniques for assessing the experiences of DOD small business contractors as a whole. Case study contractors were selected because they experienced a high frequency of late payments and may not be reflective of all small businesses.

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Document Details

Document Type
Technical Report
Publication Date
May 01, 2006
Accession Number
AD1152061

Entities

People

  • Diane Handley
  • Francine Delvecchio
  • Jamie Haynes
  • Mccoy Williams

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Business Administration
  • Case Studies
  • Commerce
  • Computer Programs
  • Congress
  • Contracts
  • Department Of Defense
  • Electronic Commerce
  • Finance
  • Governments
  • Law
  • Management Personnel
  • National Governments
  • National Security
  • Procurement
  • Small Business
  • Standards
  • United States
  • United States Government

Readers

  • Government Contracting/Procurement.

Technology Areas

  • Microelectronics