About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-185136 1 (1976-04-02)

handle is hein.gao/gaobaddqk0001 and id is 1 raw text is: 0jLLER ct THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON. D.C. 20549 FILE: B-1.85136 DATE: April 2, 1976 MATTER OF: Kohler Company qi DIGEST: 1. Subcontractor whose prices were restricted by Government's imposition of wage and price controls is not entitled to relief from Government for unanticipated rise in material costs and manufacturing expenses because Government is.not liable for sovereign acts. Moreover, Government was not party to claimant's contract with Government prime contractor and has no jurisdiction to resolve issues between prime con- tractor and its subcontractor. 2. GAO is not authorized by Public Law 85-804 and implementing Executive Orders to grant extraordinary contractual relief to facilitate national defense and does not review actions by other Government agencies under that law. The Kohler Company has requested reimbursement of unanticipated expenses incurred as a subcontractor under a Government contract. Kohler states that it agreed to fulfill purchase orders for Day and Zimmerman, Inc., the operating contractor of the Lone Star Army Ammunition Plant in Texarkana, Texas, at a time when Kohler's prices were restricted by the Government's imposition of wage and price controls. Due to the rise in material costs and manufacturing ex- penses, Kohler lost $453,755.19 complying with these agreements, and it is this amount which Kohler is seeking to recover from the Govern- ment. The imposition of wage and price controls are actions attributable to the Government in its sovereign capacity, and our Office has held that when the Government acts as a sovereign, it is not liable for its sovereign acts. See New Jersey Zinc Company, B-181491, August 19, 1974, 74-2 CPD 109. The courts have held that valid contracts are to be enforced and performed as written, and the fact that unforeseen difficulties are encountered which render performance more burdensome or less profitable, or even occasion a pecuniary loss, will neither excuse - 1 -

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most