Complaints Concerning Government of Uruguay Contract for T-34 Aircraft, Financed by DOD

PSAD-77-14: Published: Nov 24, 1976. Publicly Released: Nov 24, 1976.

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A subcontractor alleged that a U.S. company defaulted on a contract with a foreign government which had defense aid funds from the United States for payment. The subcontractor wished to be payed money due.

A company under contract with a foreign government must communicate with that government which, in turn, communicates with the U.S. Department of Defense. In this case, according to the findings,the contractor billed the Uruguayan Government which indicated to the Defense Department that it had received the items in the bill and issued the required promissory notes. The U.S. Government was not a party to the contract. The subcontractor's claims should be pursued through the Uruguayan Government or as a civil action. (SS)

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