PART 3Pricing of contracts

F1Chapter 2Default pricing of contracts

Annotations:
Amendments (Textual)

Determination of contract profit rate adjustments18

F21

This regulation applies to—

a

any baseline profit rate identified under step 1 of regulation 11 in relation to a contract or a component of such a contract;

b

any adjustment agreed under step 2 or 4 of regulation 11 (including an adjustment agreed on a group basis under regulation 13);

c

any adjustment agreed under step 3 of regulation 11.

F32

The SSRO may, on an application by the Secretary of State or the primary contractor made within two years after the contract completion date or, where the application is made in respect of a component, the component completion date—

a

determine whether the baseline profit rate mentioned in paragraph (1)(a) is correct in relation to the contract or component;

b

determine whether the amount of any adjustment mentioned in paragraph (1)(b) is appropriate;

c

determine whether the adjustment mentioned in paragraph (1)(c) is in accordance with these Regulations.

3

In making a determination, the SSRO must have regard to—

a

the information that was available to each party, and

b

the statutory guidance in place,

at the time of agreement.

4

In making a determination that relates to the amount of an adjustment agreed under step 2 (cost risk adjustment), the SSRO must have regard to the terms of the contract.

F45

If the SSRO determines that—

a

the baseline profit rate mentioned in paragraph (1)(a) is incorrect;

b

any adjustment mentioned in paragraph (1)(b) is inappropriate; or

c

the adjustment mentioned in paragraph (1)(c) is not in accordance with these Regulations,

it may determine that the contract price is to be adjusted by a specified amount.