The Single Source Contract Regulations 2014

[F1Change to an element of allowable costsU.K.

Textual Amendments

Amendment affecting a defined element of allowable costsU.K.

6.—(1) This paragraph applies where—

(a)the proposed pricing amendment will change a defined element of allowable costs under the contract or a F3... component of the contract, and

(b)the [F4default] pricing method used for the contract or F5... component (as the case may be) is a qualifying [F4default] pricing method.

(2) In this paragraph “qualifying [F6default] pricing method” means a pricing method described—

(a)in regulation 10(4) (firm pricing method),

(b)in regulation 10(5) (fixed pricing method),

(c)in regulation 10(9) and (10) (volume-driven pricing method), or

(d)in regulation 10(11) (target pricing method).

(3) The price payable in respect of the [F7pricing] amendment must be determined in accordance with the following formula—

where—

(a)

“CPR” is the contract profit rate for the [F8pricing] amendment, and

(b)

“AC” means the defined element of allowable costs after it is changed, determined in accordance with the qualifying [F9default] pricing method used for the contract or F10... component.

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

(a)the original contract price less the adjustment amount, and

(b)the price payable in respect of the [F11pricing] amendment.

(5) For the purposes of sub-paragraph (4), “the adjustment amount” is the amount of the original contract price which can be attributed to the defined element of allowable costs that is being changed.]

Textual Amendments