Haynes Boone Partner Zach Prince and Counsel Dan Ramish authored an article in Law360 discussing a direct claims ruling that may alter government ties to software firms.
Read an excerpt below:
In general, only a prime contractor is considered a party to a government contract, and so only a prime contractor can directly submit a contract claim and file an appeal against the government under the Contract Disputes Act.
With certain rare exceptions, subcontractors and suppliers usually lack privity of contract with the government and can only assert claims on a pass-through basis, sponsored by the prime.
But a recent decision in the U.S. Court of Appeals for the Federal Circuit may open the door for software providers selling through resellers to assert direct claims against the government — at least at the preliminary stages of litigation.
To read the full article in Law360, click here.
