Small Business Prompt Payment Act Amendments of 1987

Small Business Prompt Payment Act Amendments of 1987 - Revises Federal law to deem the head of a Federal agency to have received an invoice on the later of: (1) the date on which the designated office or employee of an agency actually receives it; or (2) the fifth day after the date on which a property is actually delivered, or final performance of a service is actually completed, unless the contract specifies otherwise.

Makes Federal prompt payment provisions applicable to the United States Postal Service. Makes the Postmaster General responsible for issuing procurement regulations, solicitation provisions, and contract clauses.

Reduces the 15-day grace period for payment of interest penalties to eight days for solicitations (other than meat products and agricultural commodities) issued before October 1, 1990. Eliminates such grace period for procurement solicitations issued on or after October 1, 1990. Requires an agency to pay a double interest penalty if: (1) the agency owes the interest penalty; (2) the interest penalty is not paid to the business concern on or after the date the penalty is due; (3) the agency does not pay the penalty within ten days after such payment is made; and (4) a written demand is made within 40 days after such payment is made.

Requires regulations on interest penalties, in the case of construction contracts, to provide for the payment of interest on: (1) progress payments due for more than seven days, or a longer period if the prevailing practice in private construction contracts is to provide such longer period; and (2) amounts retained during the performance of a contract, if such amounts are not paid by the required payment date.

Requires regulations on interest penalties to provide for periodic payments in the case of supply or service contracts upon: (1) the submission of an invoice for supplies delivered or services performed; and (2) acceptance of supplies or services by an authorized employee or certification of performance by such an employee.

Requires Government construction contractors to include a payment provision in their agreements with their subcontractors which provides for payment in accordance with prevailing industry standards. Requires the contractor to pay a late payment interest penalty to the subcontractor at the rate applicable between the prime contractor and the Government.

Specifies the calculation of time for interest penalties on discount payments.

Revises agency reporting requirements on interest penalty payments to include: (1) a description of agency payment practices; and (2) an analysis by the Office of Small and Disadvantaged Business Utilization for each of the various Federal agencies on the impact of such payments on small and disadvantaged businesses.

Requires the Chief Counsel for Advocacy of the Small Business Administration to report to the congressional committees on Small Business on current Government compliance with the payment of interest penalties and the impact on small business. Requires the Chief Counsel to monitor the compliance of all agencies and of the Director of the Office of Management and Budget with interest penalty payments.

Requires the modification of the Federal acquisition regulation to implement Federal prompt payment provisions.