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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] Further, various Agency FAR Supplements put forth a structured approach for evaluating profit. Now, compare the foregoing to contractor profits. ”). [69]

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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] However, the FOMC evaluates the 2% goal against the Personal Consumption Expenditures Price Index (“PCE”) (addressed below).