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B-178879 1 (1973-10-02)

handle is hein.gao/gaobaaddi0001 and id is 1 raw text is: L           I


                COMFIHOLLEfl GENERAL OF THE UNITED STATES




B-.78879                                        October 2, 1973

              I

Forwtry Supp1ewt, Inc.
PoO. Box 8397
Jack.sOu, Xtssi4t  39704
     Attention$ Mr. Larry Clasp
                 Salea Hanager

Contlemeni

     Reference s uade to ;our letter of June 6, 1973, with enclosures,
requestinfg 44 inorease in the contract price In Forest 3rvice purchase
order 22/rR4S'72,

     You state that your corporation is in the buuinese aoftiporting
optical surveytng equipment not produced in this comntry. You have
indicated that after thG Forest S rvlce avardod the purclaae order for
10 of thase Instrum nte, the foroign cmanufacturer increased tme price of
the equipmxnt and the dollar was dcraluatod with the result that your
corporatioa toe cxperieacing losses. oTherefore, Xt is requested thnt an
Increase in price teauthorized for the instruments.

     An we stated In 53 Camp. Cn. -    (B-179255, September 4, 1.973)s

          Ih devaluation of the doflar is attributablo to the
     Government acting in its aoveroign capacity. See $-175674,
     ay 30, 1972. It is yoUt sattled that the Covernment is
     not liable as a contractor for the consequonces of its acts
     a svciroVon. So UHorowitz v     United Ste sen 267 Us
     455 (1925): Thu Sunsvick   v. United States, 75 F. Suppe
     221, 109 Ct, C, 772 (1940). Aloe, where a Government con-
     tract contains an expreao utipulation as t the vmotntt of
     cotpenation to be paid, and no provision i made for any
     increaso in the event porformanee becomesnoro expansiva
     or diffictdt, the fact that the coat of porfoxance is
     incroased by factors which do not constitute undue inter-'
     Letece by the ovarnment no a contractor does not entitle
     thm contractor to additional componsationa  Se B-175674,
     eua.. and cases cited thorein, As vwstaeed in Pe n nBrdge
     Co. v.  atntedStates, 59 Ct. Cl. 892, C96 (1924)-0

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