DoD eyes inflation relief for vendors

According to a recent high-level communication, the Defense Department is allowing defence contractors

with fixed-price contracts to receive inflation relief in an effort to potentially "address acute consequences on small business and other suppliers."

John Tenaglia, the Pentagon's price commander, has issued fresh instructions as the defence sector has pushed for more flexibility to address inflation,

If the government receives "sufficient consideration," contracting officers may apply "schedule relief"

alter other contractual conditions, according to the document from September 9.

After learning from the Defense Department's acquisition chiefs how inflation is harming contractors' capacity to charge for their services,

Tenaglia wrote in the memo that he is informing contracting officials on the variety of approaches that are available.

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