DoD Releases Updated Guidance for Firm-Fixed-Price Contractors Grappling with Inflation

Covington & Burling – With continued inflation putting pressure on the defense supply chain, the Department of Defense (“DoD”) has released guidance encouraging contracting officers to provide mutually agreeable relief to fixed-price contractors facing untenable costs. DoD’s guidance, dated September 9, 2022, follows a similar guidance earlier this summer which recommended that contracting officers consider including economic price adjustment clauses in new solicitations.