F1SCHEDULERe-determination of contract price

Annotations:
Amendments (Textual)

PART 2Single pricing amendment to a qualifying defence contract

Change of regulated pricing method

Amendment of the regulated pricing method used for a qualifying defence contract4

1

This paragraph applies where the proposed pricing amendment will change the regulated pricing method used for the contract to another regulated pricing method (the “new regulated pricing method”).

2

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

where—

  1. a

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

  2. b

    “AC” means the primary contractor’s allowable costs after the time of agreement, determined in accordance with the new regulated 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 amendment.