The Single Source Contract (Amendment) Regulations 2024

Amendment of regulation 28 (contract completion report)

33.  In regulation 28(1)—

(a) in paragraph (2)—

(i) in the opening words, for the “The report” substitute “Subject to paragraphs (3) to (7), the report”;

(ii) after sub-paragraph (b) insert—

“(ba) where the contract contains components, an explanation of which of those deliverables relate to which component;”;

(iii) in sub-paragraph (c)(i), at the end insert “and, where the contract contains components, an explanation of which parts of any risk contingency element relate to which component”;

(iv) in sub-paragraph (c)(ii), after “element” insert “and, where the contract contains components, an explanation of which parts of any actual risk contingency element relate to which component”;

(v) in sub-paragraph (c)(iii)—

(aa) after “profit” insert “for the contract and, where the contract contains components, for each component”;

(bb) for “5” substitute “3”;

(vi) in sub-paragraph (c)(iv), at the end insert “for the contract and, where the contract contains components, for each component”;

(vii) in sub-paragraph (c)(v), after “profit” insert “for the contract and, where the contract contains components, for each component”;

(viii) in sub-paragraph (c)(vi), after “profit” insert “for the contract and, where the contract contains components, for each component”;

(ix) for sub-paragraph (d) substitute—

“(d) an annual profile of any estimated costs for the contract and, where the contract contains components, for each component at the time of agreement (split by the defined pricing structure);”;

(x) for sub-paragraph (e) substitute—

“(e) the total amount of non-recurring allowable costs (split by the defined pricing structure) for the contract and, where the contract contains components, for each component of the contract, except where the contract or component was priced using a contract pricing method under which costs are indistinguishable from profits;”;

(xi) in sub-paragraph (g), at the end insert “for the contract and, where the contract contains components, each component of the contract”;

(xii) in sub-paragraph (i), after “price” insert “of the contract and, where the contract contains components, each component of the contract”;

(xiii) in sub-paragraph (j)—

(aa) in the opening words, after “contract”, in the second place it occurs, insert “or, where the contract contains components, a component of the contract”;

(bb) in paragraph (ii), after “price” insert “for the contract or component”;

(cc) in paragraph (iii), at the end insert “or component”;

(xiv) after sub-paragraph (o) insert—

“(oa) where the contract contains components, an explanation of which delivery milestones relate to which component;”;

(xv) omit the “and” at the end of sub-paragraph (p)(ix);

(xvi) in sub-paragraph (q)(iii), for “sub-contract.” substitute “sub-contract; and”;

(xvii) after sub-paragraph (q) insert—

“(r) a description of any component completion reports provided under regulation 27A.”;

(b) after paragraph (2) insert—

“(3) If the contract price for the contract or component is determined entirely in accordance with regulation 19A (commercial pricing) or regulation 19B(3) (prices determined in accordance with law) the requirements in paragraphs (2) are modified as follows in relation to the contract or component—

(a) the actual quantum of deliverables required by paragraph (2)(b) need not be expressed using the output metrics set out in the contract reporting plan;

(b) the report need not contain the information specified in paragraphs (2)(c)(i), (ii), (v) and (vi), (b) to (h), (k), (p) and (q);

(c) paragraph (2)(i) has effect as if for the words from “any estimated” to the end there were substituted “the contract price of the contract or component estimated at the time of agreement and the actual contract price of the contract or component”;

(d) paragraph (2)(j)(iii) has effect as if for “costs already incurred or forecast to be incurred under the contract or component” there were substituted “price payable, together with a quantified analysis of the variance”.

(4) If the contract price for the contract or component is determined entirely in accordance with regulation 19C (previously agreed price) the requirements in paragraphs (2) are modified as follows in relation to the contract or component—

(a) paragraph (2)(a) has effect as if at the end there were inserted “which were deliverable after the contract has become a qualifying defence contract”;

(b) paragraph (2)(b) has effect as if after “expressed” there were inserted “in respect of those deliverables that were deliverable after the contract became a qualifying defence contract”;

(c) the report need not contain the information specified in paragraph (2)(c), (e) and (p);

(d) paragraph (2)(i) has effect as if for the words from “any estimated” to the end there were substituted “the contract price for the contract or component estimated at the time of agreement and the actual contract price for the contract or component”;

(e) paragraph (2)(j) has effect as if for “was entered into” there were substituted “became a qualifying defence contract”;

(f) paragraph (2)(m) has effect as if at the end there were inserted “after the contract became a qualifying defence contract”;

(g) paragraph (2)(n) has effect as if at the end there were inserted “after the contract became a qualifying defence contract”;

(h) paragraph (2)(o) has effect as if—

(i) in paragraph (2)(o)(i) at the end there were inserted “after the contract became a qualifying defence contract”;

(ii) paragraph (2)(o)(ii) were omitted.

(5) If the contract price for the contract or component is determined entirely in accordance with regulation 19E (competed rates applied to uncompeted volumes) in relation to the contract or component—

(a) paragraph (2)(f) has effect as if for “cost recovery base” there were substituted “competed rates”;

(b) paragraph (2)(h) has effect as if for “cost recovery base” there were substituted “competed rates”.

(6) The report need not separately identify any information in relation to a component which has been provided in a report under regulation 27A (component completion report).”.

(1)

Regulation 28 was amended by S.I. 2019/1106.