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According to the FAR, subpart 49.108-1, a subcontractor has no contractual rights against the Government upon termination of a prime contract. Upon termination, the prime contractor and each subcontractor are responsible for the prompt settlement of the settlement proposals of their immediate subcontractors. If the prime believes the contract has been wrongfully terminated, he may sue the Government, but the subcontractor would have no standing to sue. The subcontractor may, however, have rights against the prime contractor and elect to address those issues in court.1
Julia CookPROC 5890 Final Exam16 December 2016In reference to Johnny’s ability to protest issues and concerns through the various courts and agencies able to handle protests, it is unlikely he would have standing to protest. IAW GAO, Federal Government procurement contracts may be protested by bidders or other interested parties so, in theory, Johnny Jones could protest a solicitation or award of a contract. Since he is a subcontractor, however, it is unlikely he would have an interest in protesting the Federal construction contract in question. The construction industry has one of the highest failure rates of any business sector (Wolfe). If Jimmy Smith Construction Company were to become insolvent, the Government would not be responsible for honoring the remaining portion of the subcontractor contracts. Because of this, I would advise Johnny to protect himself and his business. Prior to signing the contract, Johnny may ask for a personal guarantee from Jimmy. This guarantee would allow Johnny to collect from the company in the event of insolvency (Wolfe). If that is not possible, Johnny’s only recourse would then be to sue Jimmy Smith for payment on any work completed (or any other guarantees) under the Miller Act.Essay Question #2: ITI Inc. was put under contract by the United States Air Force to develop a new command and control (C2) system for a new weapon system. Much of the contract statement of work (SOW) called for a significant amount of noncommercial software to be developed by ITI Inc. during the contract period of performance. At the end of the contract, does ITI Inc. own the intellectual property rights in the form of federal copyrights to the software it developed? DoesITI Inc. need to ask permission from the Air Force to use the software for foreign commercial opportunities it also desires to pursue? Be sure to identify and discuss any relevant regulations.At the end of the contract, ITI Inc. owns the intellectual property rights for the software. The AirForce will hold the license for the software. Depending on how the development was funded, theAir Force could own 1) unlimited rights; 2) restricted rights; or 3) Government purpose rights.