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The Single Source Contract Regulations 2014

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Changes over time for: PART 2

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There are currently no known outstanding effects for the The Single Source Contract Regulations 2014, PART 2. Help about Changes to Legislation

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[F1[F2PART 2U.K.Re-determination of price using a default pricing method]

Textual Amendments

[F3Application of Part 2U.K.

3.  This Part applies to determine the price payable under a contract or component if—

(a)the parties propose to make a single pricing amendment to a qualifying defence contract (irrespective of whether the parties propose to make, at the same time, any other amendment to the contract which is not a pricing amendment), and

(b)the price of the contract (if the pricing amendment does not relate to an existing component) or component (if the pricing amendment relates to an existing component) to which the pricing amendment relates was last determined in accordance with a default pricing method or with this Part.]

Textual Amendments

Change of [F4default] pricing methodU.K.

Textual Amendments

Amendment of the [F5default] pricing method used for a qualifying defence contractU.K.

4.—(1) This paragraph applies where the proposed pricing amendment will change the [F6default] pricing method used for the contract to another [F6default] pricing method (the “new [F6default] pricing method”).

(2) The price payable in respect of the pricing amendment must be determined in accordance with the following formula—

where—

(a)

“CPR” is the contract profit rate for the [F7pricing] amendment, and

(b)

“AC” means the primary contractor’s allowable costs after the time of agreement, determined in accordance with the new [F8default] pricing method.

(3) The price payable under the amended contract is the total of—

(a)the price payable in respect of performance under the contract on or before the time of agreement, and

(b)the price payable in respect of the [F9pricing] amendment.

Textual Amendments

Amendment of a [F10default] pricing method used for a F11... component of a contractU.K.

5.—(1) This paragraph applies where the proposed pricing amendment will change the [F12default] pricing method used for a F13... component of the contract to another [F12default] pricing method (the “new [F12default] pricing amendment”).

(2) The price payable in respect of the pricing amendment must be determined in accordance with the following formula—

where—

(a)

“CPR” is the contract profit rate for the [F14pricing] amendment, and

(b)

“AC” means the primary contractor’s allowable costs under the F15... component after the time of agreement, determined in accordance with the new [F16default] pricing method.

(3) The price payable under the amended contract is the total of—

(a)the price payable for performance under the contract (other than performance under the relevant F17... component),

(b)the price payable for performance under the relevant F18... component on or before the time of agreement, and

(c)the price payable in respect of the [F19pricing] amendment.

Textual Amendments

Change to an element of allowable costsU.K.

Amendment affecting a defined element of allowable costsU.K.

6.—(1) This paragraph applies where—

(a)the proposed pricing amendment will change a defined element of allowable costs under the contract or a F20... component of the contract, and

(b)the [F21default] pricing method used for the contract or F22... component (as the case may be) is a qualifying [F21default] pricing method.

(2) In this paragraph “qualifying [F23default] pricing method” means a pricing method described—

(a)in regulation 10(4) (firm pricing method),

(b)in regulation 10(5) (fixed pricing method),

(c)in regulation 10(9) and (10) (volume-driven pricing method), or

(d)in regulation 10(11) (target pricing method).

(3) The price payable in respect of the [F24pricing] amendment must be determined in accordance with the following formula—

where—

(a)

“CPR” is the contract profit rate for the [F25pricing] amendment, and

(b)

“AC” means the defined element of allowable costs after it is changed, determined in accordance with the qualifying [F26default] pricing method used for the contract or F27... component.

(4) The price payable under the amended contract is the total of—

(a)the original contract price less the adjustment amount, and

(b)the price payable in respect of the [F28pricing] amendment.

(5) For the purposes of sub-paragraph (4), “the adjustment amount” is the amount of the original contract price which can be attributed to the defined element of allowable costs that is being changed.

Textual Amendments

Change to a contractual requirementU.K.

Change to a contractual requirement: contract or F29... component not using cost-plus methodU.K.

7.—(1) This paragraph applies where—

(a)the proposed pricing amendment will change a contractual requirement of the contract or of a F30... component of the contract, and

(b)the [F31default] pricing method used for the contract or F32... component (as the case may be) is not the cost-plus method.

(2) The price payable in respect of the [F33pricing] amendment must be determined in accordance with the following formula and may be a negative amount—

where—

(a)

“CPR” is the contract profit rate for the [F34pricing] amendment, and

(b)

“AC” means the amount (which may be a negative amount) by which the [F35pricing] amendment will change the original allowable costs.

(3) For the purposes of sub-paragraph (2), “original allowable costs” means the allowable costs under the contract or F36... component, as determined for the purposes of calculating the original contract price.

(4) The price payable under the amended contract is the total of—

(a)the original contract price, and

(b)the price payable in respect of the [F37pricing] amendment.

Textual Amendments

Change to a contractual requirement: contract or F38... component which uses cost-plus method – distinguishable costsU.K.

8.—(1) This paragraph applies where—

(a)the proposed pricing amendment will change a contractual requirement of the contract or of a F39... component of the contract,

(b)the [F40default] pricing method used for the contract or F41... component (as the case may be) is the cost-plus method, and

(c)the allowable costs resulting from the [F42pricing] amendment can be distinguished from the original allowable costs.

(2) For the purposes of sub-paragraph (1)(c), “original allowable costs” means the allowable costs under the contract or F43... component before the contract is amended.

(3) The price payable in respect of the [F44pricing] amendment is to be determined in accordance with the following formula—

where—

(a)

“CPR” is the contract profit rate for the [F45pricing] amendment, and

(b)

“AC” means the primary contractor’s allowable costs resulting from the [F46pricing] amendment, as determined in accordance with the cost-plus method.

(4) The price payable under the amended contract is the total of—

(a)the original contract price, and

(b)the price payable in respect of the [F47pricing] amendment.

Textual Amendments

Change to a contractual requirement: contract or F48... component which uses cost-plus method – costs not distinguishableU.K.

9.—(1) This paragraph applies where—

(a)the proposed pricing amendment will change a contractual requirement of the contract or of a F49... component of the contract,

(b)the [F50default] pricing method used for the contract or F51... component (as the case may be) is the cost-plus method, and

(c)the allowable costs resulting from the [F52pricing] amendment cannot be distinguished from the original allowable costs.

(2) For the purposes of sub-paragraph (1)(c), “original allowable costs” means the allowable costs under the contract or F53... component before the contract is amended.

(3) The price payable in respect of the [F54pricing] amendment is to be determined in accordance with the following formula—

where—

(a)

“CPR” is the contract profit rate for the [F55pricing] amendment, and

(b)

“AC” means the primary contractor’s allowable costs under the contract, or F56... component, after the time of agreement, as determined in accordance with the cost-plus method.

(4) For the purposes of sub-paragraph (3), no account is to be taken of any costs incurred by the primary contractor before the contract is amended.

(5) The price payable under the amended contract is the total of—

(a)the price payable under the contract on or before the time of agreement, and

(b)the price payable in respect of the [F57pricing] amendment.

Textual Amendments

F58...]U.K.

Textual Amendments

Other amendmentsU.K.

F5910.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

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