Strong Structural Steel manufactured bollard panels for a border wall project as a subcontractor to prime contractor Southern Border Constructors. When the government halted construction, thousands of panels were left at Strong Structural's facility with no direction on removal or storage. The Court of Federal Claims dismissed the case, ruling it lacked jurisdiction because the government's directives went to the prime contractor, not the subcontractor, and any claims must flow through the prime contractor under the Severin doctrine.
Subcontractors cannot sue the government directly for damages caused by government actions directed at the prime contractor—claims must go through the prime contractor first
Include clear flow-down language in your subcontract requiring the prime to pass through all government directives, changes, and relief claims to protect your rights