The case involves a dispute between American Telephone and Telegraph Company (AT&T) and the United States government regarding a fixed price contract for the development of a ship-towed undersea surveillance system. The Court of Federal Claims initially ruled the contract void due to non-compliance with statutory requirements, but the Federal Circuit Court of Appeals held that the contract was not void and remanded the case for further proceedings. The court discussed the applicability of § 8118 of the Defense Appropriations Act of 1987, which restricts the use of fixed price contracts for major systems exceeding $10 million unless certain conditions are met. The court concluded that the contract was not void ab initio despite the Department of Defense's failure to comply with § 8118.
documents/EFTA00797875.pdf
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