B-185579: Jan 23, 1976

WHERE INCREASED COST OF PERFORMANCE OF FIXED-PRICE CONTRACT FOR DELIVERY OF NONFAT DRY MILK UNDER DEPARTMENT OF AGRICULTURE PRICE SUPPORT PROGRAM IS ATTRIBUTABLE TO ACTS OF GOVERNMENT AS SOVEREIGN IN RAISING PRICE SUPPORT LEVEL AND NO PRICE ADJUSTMENT CLAUSE WAS INCLUDED IN CONTRACT. THERE IS NO LEGAL BASIS TO SUPPORT UPWARD PRICE ADJUSTMENT SINCE GOVERNMENT AS CONTRACTOR IS NOT LIABLE FOR ITS ACT...

B-185579: Jan 23, 1976

The propriety of granting an upward price adjustment for bulk nonfat dry milk because of an increase in the price support level and purchase price of the dry milk was questioned. Even though the Government, as sovereign, increased the price support level which resulted in increased purchase prices, the Government as a contractor cannot be held liable for these acts. There is no legal basis to supp...