Inflation. A word no one likes, but it is something that is currently impacting nearly every facet of our lives. Gas prices continue to rise, grocery costs are through the roof, and everyday living expenses are taking more hard-earned money from our country’s workers than ever before. However, consumers are not the only ones feeling the effects. Costs and expenses of running a business have increased dramatically as well, and those in the federal contracting world are no exception. Questions from both contractors and contracting officers (CO) prompted the Department of Defense (DOD) release new guidance on May 25, 2022, conveying how it plans to handle inflation through economic price adjustments (EPA) as well as when the use of EPAs is appropriate. However, the guidance also discourages flexibility for increased costs based on inflation.
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GAO Sustains Protest Where Contract Modification Fell Outside the Contract’s Scope
GAO protests typically address issues that occur before contract award. For example, GAO will review a solicitation’s terms. It will also review an agency’s evaluation of proposals submitted in connection with a solicitation.
But as a general rule, GAO won’t insert itself into disputes arising after award, which fall under the contract administration umbrella. But there is an exception–and an important one . . . one that all federal contractors should be aware of.
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