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B-180054 1 (1973-12-06)

handle is hein.gao/gaobaadta0001 and id is 1 raw text is: Pt.4 t =-- COMPTROLLER GENERAL OF THE UNITEDSTAS*I.'.5Li 4FWAXHINGTO , SMWAI-V4N t9 1-1800 kIceumber 6, 1973 * 9 Hawthorn Mellody Fanms Dairy of itucals 220 Fast Clay Street Whitewater, Wicon 53190 , Attention: Hr, Richard C. Wagner President • Referance Is made to your letter of November 10, 1973, requesting ... cancellatin of the contract awarded to your eospavy.by a VA hospital for dairy producto for dalivery for a period akpiring June 30, 1974. You request cancellation because the Secretary of Agriculture hais *0 increauod the support leveis since the award of your cvrctract and, as a * resut, you now find yourself delivering your produtit st a loss. -6 The granting of such increased upport levels by thu Iecretary of Agriculture was an action that was attributable to the Otvvrnent in Lts sovereign capacry. See B-175674, May 30, 1972. As .was stated ini 3-Cep. Gen. . B-179255, epeber 4, 19730 copy herewith '* * * It is well settlsd that. the Government i not liable as a contractor for the consequences of its ac&t as a sovereign. See 1lorovitr. v. United States, 267 U4.. 458 (1925); The SuneickCo. v. United-StateRs, 75 Ps. Sup4 221, 109 Ct, Cl, 772 (1948). Alo, where a Government contraet containf au e'cpress stipulation its to the amount of coipenv- nation o be paid, and no provision in rade for any inareawe In the event performance becomes more expensivte or difficult, the fact that the cost of performance is incrcaned by itictor, whlch do not constitute undue interfereuce by the Governen-t as a contractor does not entitle the contractor to additional cowpesation. See B-175674, ntra, and canem cited therein. As was stated in Penn flrdge Co. v UnitedStates, 59 Ct, C. e892, 896 (1974)-- .. . .. . . . . . . . .. ... .i... . %V r Can-0.(cu ,n- )~ ' ~yr 1

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