PMP Practice: Update Documentation for Changes

Chukwuemeka Obiora is managing a government contract for Sapphire Armadillo Games to modernize warehouse management systems across twelve distribution centers. The project is operating under a fixed-price contract with strict regulatory compliance requirements. During month four of the eight-month timeline, a new federal data privacy regulation is enacted that requires significant modifications to the authentication module and data retention protocols. The compliance officer confirms that the project must adhere to the new regulation before deployment, or the client will face substantial penalties. The project sponsor has acknowledged the regulatory change but emphasizes that the contract price and final delivery date cannot be adjusted without formal approval from the contracting authority. Chukwuemeka has verified that implementing the required changes will add approximately three weeks to the critical path and increase costs by $180,000. What should Chukwuemeka do?