The Defense Department is open to considering inflation relief for defense contractors working under firm, fixed-price contracts in "extraordinary circumstances," according to a new guidance memo released by the Pentagon pricing chief. John Tenaglia, principal director of defense pricing and contracting, wrote in a Sept. 9 memo that “contractors performing under firm-fixed-price contracts that were priced and negotiated before the onset of the current economic conditions generally bear the risk of cost increases.” However, Tenaglia notes, “there may be circumstances...
