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Prime Pulls Rug Out From Under Subcontractor Appeal

Client Alert | 1 min read | 09.08.14

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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Client Alert | 5 min read | 12.23.25

An ITAR-ly Critical Reminder of Cybersecurity Requirements: DOJ Settles with Swiss Automation, Inc.

Earlier this month, the Department of Justice (DOJ) announced that Swiss Automation Inc., an Illinois-based precision machining company, agreed to pay $421,234 to resolve allegations that it violated the False Claims Act (FCA) by inadequately protecting technical drawings for parts delivered to Department of Defense (DoD) prime contractors.  This settlement reflects DOJ's persistent emphasis on cybersecurity compliance across all levels of the defense industrial base, reaching beyond prime contractors to encompass subcontractors and smaller suppliers.  The settlement is also a reminder to all contractors not to overlook the often confusing relationship between Controlled Unclassified Information (CUI) and export-controlled information....

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