Claim by Italian Contractor for Additional Costs

B-181687: Sep 23, 1975

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An Italian company requested reconsideration of the disallowance of its claims for additional costs incurred in the performance of a contract. The claim covering losses incurred as a result of the devaluation of the dollar may not be allowed since the United States, as contractor, is not liable for the consequences of its acts as sovereign. The claim involving reimbursement for transaction tax payments was disallowed because the effect would be to subject the United States to a tax from which it was exempted by an agreement between the United States and Italy. Increased inspection costs incurred during the extended period of the contract were also not allowed because the contractor was required to complete the undertaking despite a delay caused by a labor strike.