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Prime Pulls Rug Out From Under Subcontractor Appeal

Sep.08.2014

The ASBCA's dismissal of an appeal in Binghamton Simulator Co. provides a stark reminder that subcontractors generally do not have privity of contract with the government and therefore cannot appeal contracting officer final decisions – even those that directly affect the sub's rights – unless that appeal is in the name of the prime and with the prime's consent and cooperation. The substantive dispute in this appeal related to the extent of government rights in software provided by Binghamton, and Binghamton had a provision in its subcontract that may have required the prime to sponsor the appeal, but the ASBCA held these were irrelevant because the prime refused to confirm its sponsorship of the appeal to the Board.


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