Growing Issue of Inflation in Government Contracts Supply Chain Leads to DoD Clarification on Potential for Relief

Stinson – Traditionally, a fixed price government contract is one in which the contractor absorbs the risks and costs of performance.  Absent an economic price adjustment (EPA) clause in the contract, an unforeseeable event, such as a force majeure, or government imposed contract change, the contractor is stuck with the benefit or lack of benefit of the particular contractual bargain.