Pta-Fla, Inc. v. United States

United States Court of Federal Claims·Decided July 22, 2026·No. 25-988·Published

Opinion

In the United States Court of Federal Claims PTA-FLA, INC.,

Plaintiff,

No. 25-cv-988

v.

Filed: July 22, 2026

THE UNITED STATES,

Defendant.

James U. Troup of Fletcher, Heald & Hildreth, Arlington, VA, appeared for Plaintiff. With him on the briefs was Tony S. Lee of Fletcher, Heald & Hildreth, Arlington, VA.

A. Bondurant Eley of the United States Department of Justice, Civil Division, Washington, D.C., appeared for Defendant. With her on the briefs were Eric P. Bruskin, Patricia M. McCarthy and Brett A. Shumate, of the United States Department of Justice, Civil Division, Washington, D.C.

MEMORANDUM AND ORDER

Congress created the Secure and Trusted Communications Networks Reimbursement Program, 47 U.S.C. § 1603 (Reimbursement Program), to offer “reimbursements to providers of advanced communications service to replace” certain foreign-made telecommunications equipment that “poses an unacceptable risk to the national security risk of the United States.” Id. §§ 1601(b)(1), 1603(a). The Federal Communications Commission (FCC or Commission) has the power to administer the Reimbursement Program under the Secure and Trusted Networks Act of 2019, Pub. L. No. 116-124, 134 Stat. 158 (2020) (codified at 47 U.S.C. § 1601 et seq.) (Secure Networks Act). Congress directed the FCC to distribute public funds from the Reimbursement Program only to applicants who meet certain eligibility criteria. 47 U.S.C. § 1603(b). Among

other requirements, a company can only receive funding if it “provides advanced communications service to United States customers.” Id. § 1608(10)(A).

Plaintiff PTA-FLA, Inc. (PTA-FLA or Plaintiff) does not provide service to any customers, nor has it provided service for many years; however, PTA-FLA still requested $273,971,425.71 in federal funds from the Reimbursement Program. See ECF No. 6 (Corrected Motion to Dismiss or Motion) at 55 (Def. App. 1 at A16); ECF No. 6 (Am. Compl.) ¶ 40. At its core, PTA-FLA’s application was a request to spend $273,971,425.71 in public funds to upgrade an inactive telecommunications network. Am. Compl. ¶ 47. The FCC rejected PTA-FLA’s application through a comprehensive regulatory review process. The FCC delegated authority to review applications to the Wireline Competition Bureau, which on July 15, 2022, rejected Plaintiff’s application for funding. Am. Compl. 44; ECF No. 10 (Corrected Motion to Dismiss or Motion) at 41 (Def. App. at A2 nn. 3, 4). Specifically, the Wireline Competition Bureau found that Plaintiff was ineligible for the Reimbursement Program because Plaintiff had not provided telecommunications services for several years. Mot. at 44 (Def. App. at A5). On February 15, 2024, Plaintiff appealed that denial to the full Commission, which has yet to rule upon Plaintiff’s appeal. Id. at 63 (Def. App. at A24).

As detailed further below, Federal law dictates that Plaintiff may only seek judicial review after the full Commission rules upon Plaintiff’s appeal, and then Plaintiff may only seek judicial review in a United States court of appeals. 47 U.S.C. § 402(a); Sandwich Isles Commc’ns, Inc. v. United States, 992 F.3d 1355, 1363 (Fed. Cir. 2021). Instead of waiting for the full Commission

1 Defendant failed to attach its appendix as an exhibit to its Motion. Rather, the appendix is included as part of the Motion, with the same ECF citation as the Motion. For clarity about what is in the appendix (as opposed to attorney argument in the Motion), this Memorandum and Order references the page number citation in the Motion and indicates the numbering within the appendix.

to rule and then seeking judicial review in a court of appeals, PTA-FLA sued in this Court and raises two counts challenging the Wireline Competition Bureau’s denial of the funding. Am. Compl. In Count One, Plaintiff claims that it has an entitlement to payment under the Reimbursement Program, which it asserts it can collect through an action in this Court. Am. Compl. ¶¶ 55–67. In Count Two, Plaintiff claims that the Secure Networks Act, its enabling regulations, and the public statements of FCC officials together created an offer for a binding contract for reimbursement, which Plaintiff accepted and now seeks to enforce. Am. Compl. ¶¶ 68–94.

Defendant, the United States, moves to dismiss on several grounds pursuant to Rules 12(b)(1) and 12(b)(6). Mot. at 10. First, Defendant argues that this Court lacks subject matter jurisdiction because Congress has displaced Tucker Act jurisdiction for the type of FCC order at issue here. Second, Defendant argues that this Court lacks subject matter jurisdiction because Plaintiff did not satisfy administrative exhaustion requirements. Third, Defendant argues that Plaintiff fails to state a claim for relief in each Count. Defendant argues that Plaintiff fails to state a claim for relief in Count One because Plaintiff does not meet the requirements of the Reimbursement Program. Defendant argues that Plaintiff fails to state a claim for relief in Count Two because Plaintiff does not allege a mutual intent to contract or unambiguous offer and acceptance between itself and the FCC.

The Court GRANTS Defendant’s Corrected Motion to Dismiss (ECF No. 10) in full.

Accordingly, Plaintiff’s Amended Complaint (ECF No. 6) is DISMISSED.

BACKGROUND 2

Plaintiff “provided advanced communications service to approximately 4,000 customers in Florida, West Tennessee, and South Carolina” using telecommunications devices that qualify for the Reimbursement Program. ECF No. 6 (Am. Compl.) ¶ 24. Plaintiff does not specify in its Amended Complaint the time period when it “provided” such a service, nor does Plaintiff allege in its Amended Complaint that it currently provides telecommunications services or that it provided such services at the time that it applied for FCC funding. See id.

On March 12, 2020, President Trump signed into law the Secure Networks Act, which included the Reimbursement Program. See Secure Networks Act § 4. Plaintiff alleges that, subsequently, the FCC “made an offer to Plaintiff” related to reimbursement of expenses for replacing Huawei and ZTE network equipment, which allegedly was sufficient to form a contract with Plaintiff. Am. Compl. ¶ 31. In particular, Plaintiff alleges that “[i]n early 2020 and 2021, the FCC and its leadership publicly urged providers to begin the removal process without delay, highlighting the urgent national security concerns posed by covered equipment.” Am. Compl. ¶ 32. According to Plaintiff, FCC officials “praised providers that removed the Huawei and ZTE

2 At this motion to dismiss stage, the Court does not make factual findings; rather, the Court accepts the well-pleaded facts in the Complaint as true for purposes of resolving a motion to dismiss for failure to state a claim under Rule 12(b)(6). Boyd v. United States, 134 F.4th 1348, 1352 (Fed. Cir. 2025) (“We take all factual allegations in the complaint as true and construe the facts in the light most favorable to the non-moving party.” (quoting Jones v. United States, 846 F.3d 1343, 1351 (Fed. Cir. 2017))). As Defendant has not challenged any factual allegations in the Complaint, the Court also accepts as true all well-pleaded facts for purposes of the resolving the Rule 12(b)(1) motion to dismiss for lack of subject matter jurisdiction. See Estes Express Lines v. United States, 739 F.3d 689, 692 (Fed. Cir. 2014) (“In deciding a motion to dismiss for lack of subject matter jurisdiction, the court accepts as true all uncontroverted factual allegations in the complaint, and construes them in the light most favorable to the plaintiff.” (citing Cedars-Sinai Med. Ctr. v. Watkins, 11 F.3d 1573, 1583–84 (Fed. Cir. 1993))).

equipment from their networks prior to the establishment of the Reimbursement Program and assured them they would receive reimbursement.” Id. ¶ 33.

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