SUFI Network Servs., Inc. v. United States, No. 15-5151 (Fed. Cir. 2016)
Annotate this CaseSUFI invested money to build and operate telephone systems at Air Force bases and was to earn returns for 15 years from per-call charges, to be shared with the Air Force. The Air Force breached the contract by allowing contractually prohibited diversions of calls from the SUFI phones. SUFI brought claims to the Armed Services Board of Contract Appeals (ASBCA), which awarded $2.8 million (plus interest) on one group of claims and $4.6 million (plus interest) on another. SUFI appealed the award on the second group of claims, invoking the standards of review set by the Wunderlich Act 41 U.S.C. 321 (repealed 2011). The Claims Court granted SUFI relief. The Federal Circuit remanded, holding that the Claims Court had not properly applied that standard. ASBCA conducted remand proceedings and awarded roughly $113 million (plus interest). SUFI promptly accepted the decision. The Claims Court declined the government’s request for review, stating, “[u]nder the Wunderlich Act, only the contractor has the right to appeal from a Board decision.” The Federal Circuit affirmed, stating: “The new decision is no less the position of the United States just because it is not the initial decision.”
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