F1SCHEDULERe-determination of contract price

PART 2Re-determination of price using a default pricing method

Change of F2default pricing method

Amendment of the F3default pricing method used for a qualifying defence contract

4.

(1)

This paragraph applies where the proposed pricing amendment will change the F4default pricing method used for the contract to another F4default pricing method (the “new F4default pricing method”).

(2)

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

(CPR×AC)+AC

where—

  1. (a)

    “CPR” is the contract profit rate for the F5pricing amendment, and

  2. (b)

    “AC” means the primary contractor’s allowable costs after the time of agreement, determined in accordance with the new F6default 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 F7pricing amendment.

Amendment of a F8default pricing method used for a F9... component of a contract

5.

(1)

This paragraph applies where the proposed pricing amendment will change the F10default pricing method used for a F11... component of the contract to another F10default pricing method (the “new F10default pricing amendment”).

(2)

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

(CPR×AC)+AC

where—

  1. (a)

    “CPR” is the contract profit rate for the F12pricing amendment, and

  2. (b)

    “AC” means the primary contractor’s allowable costs under the F13... component after the time of agreement, determined in accordance with the new F14default 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 F15... component),

(b)

the price payable for performance under the relevant F16... component on or before the time of agreement, and

(c)

the price payable in respect of the F17pricing amendment.