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B-179802 1 (1973-10-26)

handle is hein.gao/gaobaadmn0001 and id is 1 raw text is: 2',\ COMPTROLLER GENERAL OF THE UNITED STATES C, WAS I$INUiTOL D.C. 21148 3 D--179802 October 26 1973 Gilbert Trading Corp. 14-40 Ltin Struet BelleviLle, mi Jersey 07109 Gentlema-n: Ref-rcnce is made to your lettcr of Septenber 28, 1973, reques'iunc-or- --increaso in til contract price!±n twp contracts awarded by Federal 1'rison Industries. You state that your corporation is in the business of importing paint brush handles not produced in this country, You have indicated that after the Federal Prison Industrieo awarded the purchape order for the paint brush handles, the dollar was devaluated with the result that your corporation is a.partencing lossos. Therefore, it is re- quected ithat on increase in price be authorized for the paint brush handles in question. As we stated in 53 Ccrip. Gen. (B-179255, September 4. 973): The devaluation of the dollar is &ttributable to the Covcrnnunt acting in its iovercign capacity. Sea £-175674, Hay 30, 1972. It is well settled that the GovrrnmeLt is not liable no a contractor for the consequences of ia acts as a sovereign mSee H1orow tz v. United Stats, 267 UIE 458 (1925); T7h oSunmsickhCorp. v. jvjitH .'stats, 75 r. Supp. 221, 109 Ct. C1 , 72 (1948). Al o, where a Governmentcon- tract contains an express stipulation as to the amount of conpennation to be paid, nnd no proviclon is iuade for any increaoe in the event perfonuanca becomes Iorb t pensive or difficult, the fact that the cost of perforrianco in incrensed by iacture which do uot constitute undua inter- terenca by the Governnent an a contractor doeo not entitle the contractor to additional coxpenation. See IH175674, supra, and cases cited therein. Au ia stated in Penn Bride Co,. v. United tates, 59 Ct. C!, 892, 896 (1924)r-- 11:* A *. Contractual rights once fixed in a proper contract executed by authority are inviolate. They nay be forfeited by one party or the other, conotruutivn in ,- .....</ - --C>-/ /kl I

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