[Code of Federal Regulations]

[Title 48, Volume 5]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR750.7106-2]



[Page 53]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

             CHAPTER 7--AGENCY FOR INTERNATIONAL DEVELOPMENT

 

PART 750_EXTRAORDINARY CONTRACTUAL ACTIONS--Table of Contents

 

  Subpart 750.71_Extraordinary Contractual Actions To Protect Foreign 

                  Policy Interests of the United States

 

Sec. 750.7106-2  Amendments without consideration.



    (a) Where an actual or threatened loss under a foreign assistance 

contract, however caused, will impair the productive ability of a 

contractor whose continued performance of any foreign assistance 

contract or whose continued operation as a source of supply is found to 

be essential to protect the foreign policy interests of the United 

States, the contract may be adjusted but only to the extent necessary to 

avoid such impairment to the contractor's productive ability.

    (b) Where a contractor suffers a loss (not merely a diminution of 

anticipated profits) on a foreign assistance contract as a result of 

Government action, the character of the Government action will generally 

determine whether any adjustment in the contract will be made and its 

extent. Where the Government action is directed primarily at the 

contractor and is taken by the Government in its capacity as the other 

contracting party, the contract may be adjusted if fairness so requires; 

thus where such Government action, although not creating any liability 

on its part, increases the cost of performance, considerations of 

fairness may make appropriate some adjustment in the contract.