The Single Source Contract (Amendment) Regulations 2024

Amendment of regulation 17 (calculation of final price adjustment)

21.  In regulation 17(1)—

(a) in paragraph (2)—

(i) for “5%” substitute “5 percentage points”;

(ii) for “10%” substitute “10 percentage points”;

(b) in the opening words of paragraph (3)—

(i) for “10%” substitute “10 percentage points”;

(ii) for “15%” substitute “15 percentage points”;

(c) in the opening words of paragraph (4), for “15%” substitute “15 percentage points”;

(d) after paragraph (5) insert—

“(5A) For each component of a qualifying defence contract that is not subject to an agreement in accordance with paragraph (5B), the final price adjustment is to be calculated in relation to that component alone.

(5B) The parties may agree to treat two or more components as aggregated for the purpose of calculating the final price adjustment in relation to those components.”;

(e) in paragraph (6)—

(i) in each of sub-paragraphs (a), (b), (c), (d) and (e), after “under the contract” insert “or component”;

(ii) in sub-paragraph (i), for “5” substitute “3”;

(iii) omit sub-paragraphs (k) and (l).

(1)

Regulation 17 was amended by S.I. 2019/1106.