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An In-Depth Examination of Inflation Relief for a Government Contractor

Procurement Notes

According to Deltek’s 2022 Government Contracting Industry Study , in 2021, “[m]edian profit margin was higher (15%) compared with what has been observed since 2012 (6-10%).” [10] Now, compare the foregoing to contractor profits. Which is not what the parties want to do for a fixed-price contract. 1) A FAR EPA clause cuts both ways.

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Government Contracts Inflation Update

Procurement Notes

Since at least January 2012, the Federal Reserve System’s Federal Open Market Committee (“FOMC”) has maintained that a 2% inflation rate is optimal for maximizing employment and keeping prices stable. [6] 31] Generally speaking, the PCE is based on the national income and product accounts (“NIPA”) data which BEA uses to determine GDP. [32]