Katie Burrows, a partner in the Government Contracts Group at PilieroMazza, discussed with Law360 the consequences of inflation for government contractors. In an article by Daniel Wilson published May 13, 2022, entitled “Inflation Remedies Too Sparse To Aid Fixed-Price Contractors,” Katie explained that for most federal fixed-price contracts, the risk of cost increases falls solely on the contractor, leaving many with potentially money-losing deals. “Those types of contracts place upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss, which allows the agency to lean on the basic contract type to deny any claim or [request for equitable adjustment] that a contractor submits for an increase in supply chain costs, inflation, etc.,” she said. Click here to read the entire article (subscription required).
Law360 Quotes Katie Burrows on Inflation Risk Borne by Contractors on Fixed Price Contracts
