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B-181687 1 (1975-09-23)

handle is hein.gao/gaobadcmy0001 and id is 1 raw text is: m ~ ~ o 't : T 11H. UINI T E L--' V.-~ WVASH;NmSTON* CD . C 2O0 5-, E FILE: B-181687 DATE: September 23, 1975 MATTER OF: SIMMEL, Industrie Meccaniche Societa Per Azioni 9-7'32- DIGEST: 1. Devaluation of United States dollar during original and extended term of contract which was denominated in dollars though performed in Italy will not support price adjust- ment since United States is not liable as contractor for consequences of its acts as sovereign, including currency devaluation, absent contract provision authorizing modifica- tion to compensate equitably for such acts. 2. Price increase to compensate for decreased rate of tax reimbursement by Italian Government is denied where effect would subject United States to tax from which it was exempted by United States-Italy agreement. 3. Absent contract provision protecting against delay caused 'b labor strike, Italian contractor is required to complete undertaking without recovery for damages sustained by reason of strike, even though strike occurred during period of com- pensable Government-caused delay. This decision is rendered pursuant to a request by SIMMEL, Industrie Heccaniche Societa Per Azioni (SIMMEL), for reconsidera- tion of the disallowance of its three-part claim No. Z-2145425(l) by Settlement Certificate of August 20, 1974. The claims are for alleged additional costs up to $534,832 incurred incident to per- formance of contract No. DAJA 37-70-C-0544, dated December 12, 1969, for the sale of artillery shells to the United States Army under the offshore procurement program. I. SIMMESL's first claim in the amount of $327,862 covers losses incurred as a result of the devaluation of the United States dollar during the extended term of the contract to March 1972 provided by modification P00003, effective May 24, 1971. Modification P00003 was issued because of a United States Government-caused delay. - 1 -

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