True or False: Government representatives must recognize the lack of privity of contract between the Government and subcontractors.

The assertion that government representatives must recognize the lack of privity of contract between the Government and subcontractors is true. In federal contracting, privity of contract refers to the direct relationship that exists between two parties who have entered into a contract. In this case, while there is a direct contract between the government and the prime contractor, there is no direct contract between the government and the subcontractors.

This principle is significant because it affects various legal rights and obligations. Subcontractors do not have the same legal standing as prime contractors when it comes to contractual claims against the government. Therefore, government representatives must acknowledge this lack of privity, as it is fundamental in determining the scope of the government's obligations and interactions with subcontractors.

Recognizing the absence of privity helps both the government and the subcontractors to understand the boundaries of their respective legal rights and responsibilities within the contracting framework, ensuring that all parties navigate the contractual landscape with clear expectations.