[F1SCHEDULEU.K.Re-determination of contract price

Textual Amendments

PART 1U.K.Introductory

Application of ScheduleU.K.

1.—(1) This Schedule applies if the parties to a qualifying defence contract propose to amend the contract in a way that would affect the original contract price.

Such an amendment is referred to in this Schedule as a “pricing amendment”.

(2) In this Schedule—

“original contract price”, in relation to a qualifying defence contract, means—

(a)

the price determined in accordance with regulation 10, or

(b)

where the contract has previously been amended in a way that affects the price payable under the contract, the price determined or, as the case may be, last determined in accordance with this Schedule;

“the parties”, in relation to a qualifying defence contract, means—

(a)

the Secretary of State, and

(b)

the primary contractor.

InterpretationU.K.

2.—(1) In this Schedule—

F2...

“contractual requirement”, in relation to a qualifying defence contract, means a provision of the contract setting out—

(a)

the specification of,

(b)

quantity of, or

(c)

time or place for delivery of,

the goods, works or services procured under the contract;

“cost-plus method” means the regulated pricing method described in regulation 10(6);

“original contract price” has the meaning given in paragraph 1(2);

“the parties” has the meaning given in paragraph 1(2);

“pricing amendment” has the meaning given in paragraph 1(1).

(2) For the purposes of this Schedule, the contract profit rate for an amendment is to be determined in accordance with regulation 11 as it applies for the purpose of determining the contract profit rate for a contract but with the modifications specified in sub-paragraph (3).

(3) The modifications to regulation 11 are—

(a)in paragraph (3), for “under the contract” substitute “associated with the amendment”;

(b)in paragraph (4), for “under the contract” substitute “associated with the amendment”.]

Textual Amendments