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B-182810 1 (1975-06-10)

handle is hein.gao/gaobadcij0001 and id is 1 raw text is: p THE COMPTROLLER GENERAL kDECISIO * * OF THE UNITEO STATES WASHINGTON. D.C. 2054S N I T E 7 2 FILE: B-182810 DATE: June 10, 1975 MATTER OF: Sauk Valley Mfg. Co. DIGEST: 1. Question of whether supplies under contract are still needed is matter for contracting agency to determine in accordance with its obligation to properly administer contract. Moreover, decision made in this regard as to whether or not any given contract should be terminated for convenience of Government rests with contracting agency. 2. Inclusion of price escalation clause which limited price increase to 25 percent of original price was not done by mutual mistake since Government did not intend to com- pensate contractor for all increases in costs but rather merely intended to share the risk of possible price increase with contractor. 3. ReZormation- uf contract on grcunds* of mutual mistnkZ iz permissible only when there has been mutual mistake as to past or present material fact. Mistakes pertaining to future events, such as degree of cost escalation in fixed-price contract containing limited escalation provision, do not constitute grounds for reformation. 4. Contention that contracting officer arbitrarily set escala- tion limit in fixed-price contract, should have been raised prior to bid opening as required by 4 C.F.R. § 20.2 (1974), and not in midst of contract performance. 5. Claim for relief by fixed-price Government contractor suf- fering inflationary pressures is not extraordinary claim for consideration under Meritorious Claims Act. 6. Our Office cannot review agency's findings under Pub. L. 85- 804 since we are not one of Government agencies authorized by statute or implementing Executive Orders to modify con- tracts without consideration. PUBLISIED DLSI il 64 Comp. G-en. ..........

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