The Single Source Contract Regulations 2014

[F1Change to a contractual requirement: contract or defined component not using cost-plus methodU.K.
This section has no associated Explanatory Memorandum

7.—(1) This paragraph applies where—

(a)the proposed pricing amendment will change a contractual requirement of the contract or of a defined component of the contract, and

(b)the regulated pricing method used for the contract or defined component (as the case may be) is not the cost-plus method.

(2) The price payable in respect of the amendment must be determined in accordance with the following formula and may be a negative amount—

where—

(a)

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

(b)

“AC” means the amount (which may be a negative amount) by which the amendment will change the original allowable costs.

(3) For the purposes of sub-paragraph (2), “original allowable costs” means the allowable costs under the contract or defined component, as determined for the purposes of calculating the original contract price.

(4) The price payable under the amended contract is the total of—

(a)the original contract price, and

(b)the price payable in respect of the amendment.]

Textual Amendments