The Single Source Contract Regulations 2014 No. 3337

[F1 SCHEDULE U.K. Re-determination of contract price

Textual Amendments

F1 Sch. inserted (1.4.2019) by The Single Source Contract (Amendment) (No. 2) Regulations 2018 (S.I. 2018/1350), reg. 1(3), Sch. (with reg. 14)

PART 2 U.K. Single pricing amendment to a qualifying defence contract

Change of regulated pricing method U.K.

Amendment of the regulated pricing method used for a qualifying defence contract U.K.

4.— (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—

(a)

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

(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.

Amendment of a regulated pricing method used for a defined component of a contract U.K.

5.— (1) This paragraph applies where the proposed pricing amendment will change the regulated pricing method used for a defined component of the contract to another regulated pricing method (the “new regulated pricing amendment”).

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

where—

(a)

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

(b)

“AC” means the primary contractor’s allowable costs under the defined component 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 for performance under the contract (other than performance under the relevant defined component),

(b) the price payable for performance under the relevant defined component on or before the time of agreement, and

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