[F1SCHEDULEU.K.Re-determination of contract price

Textual Amendments

PART 1U.K. [F2General]

Textual Amendments

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” [F3of the contract or a component of the contract].

(2) In this Schedule—

“original contract price”, in relation to a qualifying defence contract [F4or component of such a contract], means—

(a)

the price determined in accordance with [F5a contract pricing method], or

(b)

where the contract [F6or component] has previously been amended in a way that affects the price payable under the contract [F6or component], 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.

Textual Amendments

InterpretationU.K.

2.—(1) In this Schedule—

[F7“contract profit rate”, in relation to a pricing amendment, means the contract profit rate that would be determined for the pricing amendment in accordance with regulation 11 as it applies for the purpose of determining the contract profit rate for a contract or component, and regulation 11(3) is modified for these purposes so that “under the contract or component” is to be read as “associated with the pricing amendment”;]

F8...

“contractual requirement”, in relation to a qualifying defence contract [F9or component of such a contract], means a provision of the contract [F10or component] 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 [F11default] 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);

F12...

F13(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F15Pricing amendments not covered by Part 2 or 4U.K.

2A.—(1) This paragraph applies if none of paragraphs 4 to 9 or 14 to 18 apply in relation to the pricing amendment.

(2) Where the pricing amendment creates a new component of a contract, the price payable under the component must be determined in accordance with a contract pricing method (and is to be treated for the purposes of these Regulations as if it was determined in accordance with that contract pricing method and not this Schedule).

(3) Where the pricing amendment does not create a new component, the price payable under the amended contract or, where the pricing amendment relates to an existing component, that component must be re-determined in accordance with a contract pricing method (and is to be treated for the purposes of these Regulations as if it was determined in accordance with that contract pricing method and not this Schedule).

(4) The parties—

(a)may agree which contract pricing method is to be used for the amended contract or component;

(b)may agree that components of the contract will be priced by different pricing methods.

Textual Amendments

Multiple pricing amendmentsU.K.

2B.—(1) This paragraph applies where the parties propose to make two or more pricing amendments to a contract or component at the same time (irrespective of whether the parties also propose to make, at the same time, any other amendment to the contract or component which is not a pricing amendment).

(2) Where this paragraph applies—

(a)the pricing amendments are to be treated separately and dealt with in turn,

(b)Part 2 or 4 (as the case may be) applies in relation to each pricing amendment as it applies to a single amendment, and

(c)the price payable under the amended contract or component is the price determined after the last of the pricing amendments has been dealt with.

(3) If the parties propose a pricing amendment which changes the contract pricing method used for the contract or component, that pricing amendment must be dealt with first.

(4) If the parties propose a pricing amendment to which paragraph 2A applies, that pricing amendment must be dealt with last.]]

Textual Amendments