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government contracts
Main image for How Can Defense Contractors Battle Rising Costs? Here Are Some Tips
Article

How Can Defense Contractors Battle Rising Costs? Here Are Some Tips

Government Executive

7.1.2022

Many contracts that were negotiated and priced over the past 18 to 24 months are simply more expensive to perform now than was reasonably anticipated when bids were prepared. In recognition of these soaring prices, the Defense Department issued a May 25 memorandum titled “Guidance on Inflation and Economic Price Adjustments,” the purpose of which is to assist contracting officers in (i) navigating the impacts of inflation on existing contracts and (ii) managing downstream inflation risks on prospective contracts. In this article, Franklin Turner provides key takeaways and suggested courses of action for Defense contractors to best protect your company’s bottom line.

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