Part 2

Single source contracts

Pricing of contracts

Final price adjustment
21
1
Single source contract regulations may provide for adjustments to be made to the total price payable by the Secretary of State under a qualifying defence contract.
2
The regulations must specify the procedure to be followed in determining the amount of any adjustment.
2A
Provision made under subsection (2) may include provision dealing with how, in the case of a qualifying defence contract divided into components, the components are to be taken into account in determining the amount of any adjustments to the total price payable under such a contract.
3
Provision made under subsection (2) must include provision for the amount of any adjustment to be determined—
a
by agreement between the Secretary of State, or an authorised person, and the primary contractor, or
b
by the SSRO, where the matter is referred to it by the Secretary of State, an authorised person or the primary contractor.
4
Provision under this section may be expressed so as to apply—
a
to particular kinds of qualifying defence contracts;
b
to qualifying defence contracts the value of which is of or above the amount specified for the purposes of this paragraph.
5
The Secretary of State may direct that provision under this section does not apply in relation to a qualifying defence contract the value of which is—
a
of or above the amount specified for the purposes of subsection (4)(b), but
b
less than the amount specified for the purposes of this paragraph in the regulations.
6
The regulations may specify matters to which the Secretary of State must have regard in deciding whether to make a direction under subsection (5).
S. 21 in force at 14.7.2014 for specified purposes by S.I. 2014/1751, art. 4(g)
S. 21 in force at 5.12.2014 in so far as not already in force by S.I. 2014/3162, art. 3(c)
S. 21(2A) inserted (19.1.2024) by Procurement Act 2023 (c. 54), s. 127(2), Sch. 10 para. 5; S.I. 2024/61, reg. 2(1)(b)(iii) (with reg. 3)