Government Affirmative Misrepresentation and Non-Disclosure of Superior Knowledge in Federal Contracting.
Abstract
Contractors frequently encounter unanticipated difficulties in the performance of their agreements with the federal government which result in unexpectedly higher performance costs. These risks are of particular concern to the fixed-price contractor, who has agreed to perform a specified task for a certain, unvarying sum, because the fixed-price agreement allocates the risks to the contractor in the absence of an express contractual arrangement to the contrary. Legal rules do exist, however, to reallocate the risk to the government when certain conditions exist. Two such doctrines are affirmative misrepresentation and non-disclosure of superior knowledge. Affirmative misrepresentation reallocate the risk when unanticipated difficulties are the result of a culpably false government representation which induces the contractor to follow a detrimental course of action. Non-disclosure of superior knowledge reallocates the risk when the government fails to disclose to the contractor information vital to contract performance which the contractor does not possess; in effect, the government stands to the side watching as the contractor unwittingly pursues a detrimental course of action.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1984
- Accession Number
- ADA145378
Entities
People
- M. J. Hoover
Organizations
- Air Force Institute of Technology