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The Single Source Contract Regulations 2014

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Estimated rates agreement pricing statement

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38.—(1) The designated person must, for each relevant financial year, provide an estimated rates agreement pricing statement for each pricing QBU that was a pricing QBU of the designated person in relation to the financial year immediately preceding the relevant financial year.

(2) The designated person must provide the estimated rates agreement pricing statement for each pricing QBU with the estimated rates claim report for that pricing QBU for the same relevant financial year.

(3) The Secretary of State may by written notice require the designated person to provide a further estimated rates agreement pricing statement for any one or more pricing QBU for the relevant financial year.

(4) The designated person must provide an estimated rates agreement pricing statement within three months of receiving a notice under paragraph (3).

(5) The Secretary of State may only require one further estimated rates agreement pricing statement for any one pricing QBU in a relevant financial year.

(6) The report must contain the following information—

(a)a description of the facts and assumptions used in calculating each cost recovery base listed in the estimated rates claim report (regulation 36(3)(b));

(b)whether the amount of each cost recovery base (regulation 36(3)(j)(ii)) has been estimated in a manner consistent with equivalent estimates in previous years and, if not, a description of any changes;

(c)a description of the facts and assumptions used in calculating the matters described in regulation 36(3)(d) to (h);

(d)a description of indices and rates used in calculating the estimated costs included in the estimated rates claim report, including for each—

(i)its source (including that source’s version or date); and

(ii)an explanation of why its use was considered to be appropriate; and

(e)a description of all material assumptions—

(i)regarding changes to costs relating to employment;

(ii)used to derive any estimated staff head count upon which estimated costs in the estimated rates claim report are based;

(iii)used in calculating any costs relating to decreasing over-capacity that have been included in the cost recovery rates (regulation 36(3)(a)); and

(iv)regarding significant costs that have been included in the cost recovery rates and that are novel or unusual.

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