Pentagon Rejects Calls to Increase Contract Costs for Inflation

The US defense industry has failed in its pressure campaign for the Pentagon to raise its costs for contracts, according to a letter from the top Defense Department acquisition official.

Bill LaPlante, under secretary of defense for acquisition and sustainment, wrote to Sen. Elizabeth Warren (D-Mass.) last month that “DoD does not intend to enact a policy to increase contract prices due to inflation.”

Warren had asked for clarification about September guidance that said the Defense Department would consider industry requests to increase the pricing arrangements in some contracts in response to rising costs.

The senator, an Armed Services Committee ...