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B-197847 1 (1981-08-04)

handle is hein.gao/gaobadjpk0001 and id is 1 raw text is: 0             ~7


DECISION





FILE: B-197847


THE COMPT OLLER GENERAL
OF THE UNITED STATES
WASHINGTON, 0.C0. 20548




      DATE:  August 4, 1981


MATTER OF: HLI Lordship Industries, Inc.


DIGEST:
1.   Where Government contract contains express
     stipulation as to amount of compensation
     to be paid, and no provision is made for
     any increase in event performance becomes
     more expensive or difficult, fact that
     cost of performance is increased by
     factors which do not constitute undue
     interference by Government provides no
     basis for equitable price relief.

2.   Provision excusing contractor for excess
     costs if failure to perform contract arises
     out of causes beyond control and without
     fault or negligence of contractor is appli-
     cable to situations involving one-time,
     extraordinary emergency types of contin-
     gencies and generally not to increased costs
     of raw material due to sharp fluctuations in
     volatile market. Changing gold market condi-
     tions could not be reasonably characterized
     as unforeseen, or necessarily beyond control
     of contractor to protect against.

3.   Where mistake is unilateral and contracting
    officer is not on actual or constructive
    notice of mistake, Government will not
    relieve contractor from effect of bad busi-
    ness judgment because contractor has duty to
    ascertain costs of supplies prior to submis-
    sion of bid.


4.   Enforcement of co
     since at time of
     tract price was n
     was not receiving

     The Veterans Admi
determination by our 0:


ntract is not unconscionable
bid opening and award, con-
ot unreasonable and Government
something for nothing.


nistration (VA) requests a
ffice of the propriety of granting

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