American Tel. & Tel. Co. v. U.S., 177 F.3d 1368 (1999) Keyeite Yellow Flag - Negative Treatment Distinguished by Gengler v. U.S. ex rel. its Dept. of Defense and Navy. E.D.Cal.. August 24.2006 F.3d 1368 United States Court of Appeals, Federal Circuit. AMERICAN TELEPHONE AND TELEGRAPH COMPANY, and Lucent Technologies Inc., Plaintiffs—Appellants, v. UNITED STATES, Defendant/Cross—Appellant. Nos. 95- 5153, 95- 5154. May 26, 1999. Synopsis Contractor sued Government under Contract Disputes Act for recovery of expenditures under research and development contract. The Court of Federal Claims, John P. Wiese, J., 32 Fed.CI. 672, ruled that contract was void and that quantum meruit relief was available, but certified questions for interlocutory appeal. The Court of Appeals originally affirmed, but, on rehearing en banc, the Court of Appeals, Pauline Newman, Circuit Judge, held that: (1) Navy contracts for development of ship-towed, undersea surveillance system was for "major system or subsystem," for purposes of statute prohibiting Department of Defense from entering into fixed price contracts for development of major system or subsystem exceeding $10 million unless certain conditions were met, and (2) Department's failure to comply with statute's requirements did not render contract void ab initio. Questions answered and case remanded. Rader, Circuit Judge, concurred in the result and filed opinion in which Mayer, Chief Judge, and Lourie, Circuit Judge, joined. Plager, Circuit Judge, dissented in part, concurred in part, and filed opinion. Opinion, 124 F.3d 1471, vacated. West Headnotes (5) Ill Public Contracts • Compensation United States • Compensation Navy contract for development of ship-towed. undersea surveillance system was for "major system or subsystem," for purposes of statute prohibiting Department of Defense from entering into fixed price contracts for development of major system or subs