When can a contractor submit an Economic Price Adjustment (EPA)?

A contractor can submit an Economic Price Adjustment (EPA) at the end of a fixed price with an EPA incentive contract because this specific timing aligns with the provisions typically included in such contracts. An EPA clause is designed to allow for adjustments in the contract price due to changes in economic conditions that affect the costs of contract performance.

In a fixed price contract with an EPA clause, the contractor has the opportunity to request a price adjustment based on established criteria, such as fluctuations in the cost of materials or labor. This mechanism protects the contractor from unexpected increases in essential costs while ensuring the government or purchasing entity has a clear understanding of the potential changes in pricing over the contract's duration. By submitting the EPA at the end of the contract, the contractor can accurately reflect the changes incurred throughout the project period.

This contrasts with other times mentioned, such as at the beginning, after completion, or during regular assessments. Submitting an EPA at the beginning would be premature, as no changes affecting price have yet occurred. After completion would typically mean that the contract is settled, and no further adjustments can be made. Regular assessments allow for performance evaluations but not necessarily for formal price adjustments unless specified otherwise in the contract terms. Therefore, the timing at the end of a fixed