The Single Source Contract (Amendment) Regulations 2024

Amendment of regulation 29 (contract costs statement)

34.  In regulation 29—

(a) for paragraph (1) substitute—

“(1) The primary contractor must provide a contract costs statement—

(a) within 12 months after the contract completion date of the contract; and

(b) where the component completion date of a component of the contract is more than 12 months before the expected contract completion date of the contract, within 12 months after the component completion date of the component.”;

(b) after paragraph (1) insert—

“(1A) Where a statement is provided in accordance with—

(a) paragraph (1)(a), the statement must contain the information required by this regulation in relation to the contract and, where different, in relation to each component of the contract in respect of which no statement has been provided in accordance with paragraph (1)(b);

(b) paragraph (1)(b), the statement must contain the information required by this regulation in relation to the component in respect of which the statement is provided.”;

(c) in paragraph (2)—

(i) in the opening words, for “The statement” substitute “If the contract or component is not priced entirely in accordance with a contract pricing method under which costs are indistinguishable from profits, the statement”;

(ii) in the opening words of sub-paragraph (c), after “allowable costs” insert “for the contract or, where the statement is provided in relation to a component, for the component”;

(d) after paragraph (2) insert—

“(2A) If the contract or component is priced entirely in accordance with a contract pricing method under which costs are indistinguishable from profits, the statement must contain the following information—

(a) an annual profile of the actual price payable under the contract or component, and where the contract or component was priced in accordance with regulation 19E (competed rates applied to uncompeted volumes) the annual profile must show—

(i) all competed rate costs showing each competed rate charged and the quantum of the corresponding volume; and

(ii) the actual volumes delivered under the contract or component; and

(b) if there is any variance between the total price estimated at the time of agreement and the actual total price payable under the contract or component, an explanation of the reason for that variance.”;

(e) for paragraph (3) substitute—

“(3) Up to 2% of—

(a) the actual allowable costs required by paragraph (2)(c) may, without explanation, be estimated costs;

(b) the actual price payable required by paragraph (2A)(a) may, without explanation, be estimated price;

(c) the actual volumes delivered required by paragraph (2A)(b) may, without explanation, be estimated volumes.”;

(f) for paragraph (4) substitute—

“(4) 2% or more of the actual allowable costs, actual price payable or actual volumes mentioned in paragraph (3) may be estimated costs, price or volumes, if an explanation is given of—

(a) why it is not possible to provide actual costs, price or volumes at the time the statement is provided; and

(b) when the actual costs, price or volumes will be available.”;

(g) after paragraph (4) insert—

“(4A) Where estimated costs, price or volumes are provided in accordance with paragraph (4), the primary contractor must provide the actual costs, price or volumes as soon as reasonably practicable after that information becomes available.”;

(h) in paragraph (5), after the opening words insert—

“(za) “competed rate” means the competed rate or price in accordance with the terms of the relevant framework agreement;

(zb) “competed rate costs” means costs which—

(i) the contractor claims are allowable costs under the contract; and

(ii) have been calculated by applying a competed rate to a volume;”.