United States v. Amdahl Corp

In United States v. Amdahl Corp., 786 F.2d 387 (Fed. Cir. 1986), pursuant to the Brooks Act, Pub. L. No. 89-306 (codified as amended at 40 U.S.C. 759 (1982)), the government procurement agency had delegated to the Department of Treasury the authority to procure computer equipment, and Treasury contracted with the Federal Home Loan Mortgage Corporation (Freddie Mac) for this purpose. Amdahl, 786 F.2d at 390. But in doing so Treasury had violated the statute and regulation in two respects-it improperly paid for the equipment upon signing but before physical delivery and failed to determine whether suitable equipment was available from other sources. Id. at 391. Because Treasury had acted beyond the scope of its authority, the Court held that the contract was void, and Freddie Mac could not recover under an illegal contract. Id. at 392-93. However, the Court concluded that Freddie Mac could recover under quantum meruit for the services performed as an innocent contractor. Id. at 395.