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Subs: Don't Forget The Disputes Clause


The subcontractor in Alpine Computers, Inc. (ASBCA June 22, 2005), learned the hard way that a sub should make sure its contract with the prime makes it mandatory for the prime to sponsor its good-faith claim against the government. When the prime went belly up after the Army suspected fraud and defaulted it, the sub found it could not sue the Army to pay for product it had delivered to the Army when the prime did not sponsor its claim.

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