DOD Considers Inflation Relief for Contractors

September 13, 2022

The Pentagon may offer relief for vendors working on fixed-price contracts and struggling with high inflation rates, Defense News reported, citing a DOD memo from last week.

“[T]here may be circumstances where an accommodation can be reached by mutual agreement of the contracting parties, perhaps to address acute impacts on small business and other suppliers,” the memo said, according to the report. “For example, provided adequate consideration is obtained for the government, such an accommodation may take the form of schedule relief or otherwise amending contractual requirements.”

The memo said that the military service secretaries have the authority to request “extraordinary contractual relief” for their vendors under certain circumstances.

Marine Corps photo by Lance Cpl. Jessica J. Mazzamuto

September 13, 2022

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