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B-187966 1 (1977-01-31)

handle is hein.gao/gaobadejh0001 and id is 1 raw text is: - krueu Charkis 0 . 8* Proc. I ur*-f THE COMPTROLLER ENRMAL o DECISION .. THE UNI30 STATE 4 WASHINGTON. D . 0R 48 FILE: B-187964 DATE: Janury 331 .197T MATTER OF; Fulton Shipyard DIGEST: 1. In absence of escalation clause in cortract, no basis iaisteto cospensate contractor for abnormal Intation of material costs because valid contraes mist be enforced as written. 2. Contractor req'uesting payment for increased costs due to energy crisis and unexpected escalation of materikl costs who has been denied extraortinary contractual relief under Public Law 94-190 is notentitled to review of claim by GM sincs this Office does not have jurisdiction to consider such a claim. This matter concarn' a.claim for price adjustment by the Fulton Shipyard (Pulton) under contract No. DACWl2-74-C-0104 with the Department of the Army (Army), Corps of Eninees. Fulton states that' tiie contract for the design and fabrication of a 225-ton'fidoor electi ically operated traveling crane and lift- ing.beam was entered into!on February 22, l974, with contraet coa- petition scheduled for on or before Yebrtpry 17, 1975. Fuiton contends tha, the cessation of price controls in April 1974 and the unavail- ability of steel in certain sizes and quantities, coupled wit' the energy crisis and unexpected eacalation of material costs, have caused the contract to be perforued at a loam. Accordingly, it seeks a price adjustment in the amount cof $124,800, representing the additional costs incurred. While we recognise that Fulton might vall have suffered a financial hardship s a result of rising costs, the courts have held that valid contracts are tole enforced and performed as written, and the fact that unfoisseen d&ifulties are encountered which hinger or make performance more burdensome or less profitable, or even occasion a pecuniary loss, will neither excuse a party from performance of an absolute and unqualified undertaking to do a thing that is possible I