Regulation 14 Amendment of regulation 11 (steps in determining contract profit rate)

In regulation 11—

(a)

in paragraph (1)—

(i)

after “qualifying defence contract” insert “or component of such a contract”;

(ii)

omit “six”;

(b)

in paragraph (3), for the words from “risk” to the end substitute “financial risks to the primary contractor of entering into the contract or component, taking into account the particular type of activities to be carried out by the primary contractor under that contract or component”;

(c)

omit paragraphs (4) and (5) (including their headings);

(d)

in paragraph (6)—

(i)

in the heading, for “5” substitute “3”;

(ii)

for “4” substitute “2”;

(iii)

after “contract” insert “or component”;

(e)

in paragraph (7)—

(i)

in the heading, for “6” substitute “4”;

(ii)

for “5” substitute “3”;

(iii)

at the end insert “or component”;

(f)

in paragraph (8)—

(i)

in sub-paragraph (b), after “contract insert “or component”;

(ii)

in sub-paragraph (c), at the end insert “or component”.