Thank you for your service to our Country. There are two answers to your question: theoretical and practical.
THEORETICAL: You can sue anyone for anything. The real question is, will you win more than the cost? The theoretical answer to that question is NO. Suing the DOD for less than tens of thousands of dollars is a losing proposition.
PRACTICAL: The DOD has unlimited funding (compared to yours) and divisions of motivated lawyers with extensive experience. You have very limited funds, little or no legal training and, even though you are highly motivated now, you have other obligations that will distract you. The area of operation is the american judicial system - a location known to bog down the most mobile forces the world has ever known for years at a time, and the cogs of the justice wheels require copious applications of cash at regular intervals, and turn at a glacial pace.
Given these facts, the practical solution is to move on. Spend the time with family and friends and try to forget one more idignity that the overly bureacratic system has handed you. Have a beer and watch the movie "Brazil" to see where our bureacracy is headed.
Console yourself that it wasn't personal. It was just the process of paper work.
Good luck and God bless you.
If you need further clarity, please email me at MICHAEL@MIRELAND.US Answers to questions are for general information purposes only and do not establish an attorney-client relationship. This is not legal advice, simply information. You SHOULD NOT act on this information without consulting a competent bankruptcy attorney in your area and providing ALL relevant information.