Links from this article:
Read full article here.

This article outlines that the general rule is that a “subcontractor cannot bring a claim against the government unless it has contractual privity with the government or is an intentional third-party beneficiary of an agreement. However, subcontractors can typically bring claims against the government if a prime contractor brings the suit on behalf of the subcontractor as a pass-through or sponsored claim”.

The article discuses a United States case which granted the government’s motion to dismiss for lack of subject matter jurisdiction because the subcontractor lacked privity of contract with the government.

Read full article here.

 

Take away:

  • Subcontractors should be aware of legislation governing third party suits against the government, and ensure that their contract with the prime contractor requires it to initiate litigation/arbitration on behalf of the subcontractor.

 

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