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Jason Workmaster Quoted on DoD's Response to Impact of Inflation on Federal Contracts in the National Law Journal

"'A Kick in the Teeth'?: As Inflation Comes for Federal Contractors, Agencies Offering Muted Responses"

National Law Journal

Jason Workmaster was quoted in the National Law Journal on how record inflation is impacting federal contractors' existing contracts and on a recently issued memorandum by the U.S. Department of Defense (DoD) indicating there is no authority for providing contractual relief for unanticipated inflation under a firm-fixed-price contract. Responding to whether contractors may pursue litigation, Workmaster said "It's going to depend on the case and the facts. If there's enough dollars at stake I could see a contractor asking to look into it." Workmaster noted the DoD memo wasn't all bad news. While it might leave those currently under contract with few options, it opened the door to adding more lenient Economic Price Adjustment (EPA) clauses to future contracts. "If you think performing within your scope of work might be impacted by inflation or the price of gas, and you can't really predict how it's going to go, then your time to ask for an EPA is at the solicitation stage," Workmaster suggested. "If you don't have that EPA clause in the contract you're going to be stuck." Workmaster said EPA clauses were not a top concern for clients and contractors until now because inflation has remained mostly the same. "It's not something that was on anybody's radar. Now I'm sure it's going to be on everyone's radar."