The Single Source Contract Regulations 2014

[F1 Change to a contractual requirement U.K.

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)

Change to a contractual requirement: contract or defined component not using cost-plus method U.K.

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.

Change to a contractual requirement: contract or defined component which uses cost-plus method – distinguishable costs U.K.

8.— (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,

(b) the regulated pricing method used for the contract or defined component (as the case may be) is the cost-plus method, and

(c) the allowable costs resulting from the amendment can be distinguished from the original allowable costs.

(2) For the purposes of sub-paragraph (1)(c), “original allowable costs” means the allowable costs under the contract or defined component before the contract is amended.

(3) The price payable in respect of the amendment is to 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 resulting from the amendment, as determined in accordance with the cost-plus method.

(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.

Change to a contractual requirement: contract or defined component which uses cost-plus method – costs not distinguishable U.K.

9.— (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,

(b) the regulated pricing method used for the contract or defined component (as the case may be) is the cost-plus method, and

(c) the allowable costs resulting from the amendment cannot be distinguished from the original allowable costs.

(2) For the purposes of sub-paragraph (1)(c), “original allowable costs” means the allowable costs under the contract or defined component before the contract is amended.

(3) The price payable in respect of the amendment is to 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 contract, or defined component, after the time of agreement, as determined in accordance with the cost-plus method.

(4) For the purposes of sub-paragraph (3), no account is to be taken of any costs incurred by the primary contractor before the contract is amended.

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

(a) the price payable under the contract on or before the time of agreement, and

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