Subcontractor Appeals Under CDA Must be Sponsored Regardless of Terms of Subcontract
Fall 2014

In an opinion handed down this summer, the Armed Services Board of Contract of Appeals held that subcontractor appeals under the Contract Disputes Act must be sponsored by the prime contractor regardless of the terms of the subcontract. In Appeal of Binghamton Simulator Company, ASBCA No. 59117, 14-1 BCA 35715 (August 21, 2014), subcontractor Binghamton Simulator Company (BSC) attempted to appeal directly from a contracting officer's decision issued to the prime contractor Leidos, Inc. (formerly known as SAIC). Leidos did not sponsor the BSC appeal, and therefore the Board dismissed the appeal for lack of jurisdiction. 

This case arose from an award by the U.S. Army to Leidos of an indefinite delivery/indefinite quantity delivery order contract for procurement of training and testing simulators and related products and services.  The contract was subject to the Contract Disputes Act, 41 U.S.C. §§ 7101-7109, and included a standard Disputes clause, FAR 52.233-1. 

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