Regulation 22 Amendment of regulation 18 (determination of contract profit rate adjustments)

for paragraph (1) substitute—

“(1)

This regulation applies to—

(a)

any baseline profit rate identified under step 1 of regulation 11 in relation to a contract or a component of such a contract;

(b)

any adjustment agreed under step 2 or 4 of regulation 11 (including an adjustment agreed on a group basis under regulation 13);

(c)

any adjustment agreed under step 3 of regulation 11.”;

for paragraph (2) substitute—

“(2)

The SSRO may, on an application by the Secretary of State or the primary contractor made within two years after the contract completion date or, where the application is made in respect of a component, the component completion date—

(a)

determine whether the baseline profit rate mentioned in paragraph (1)(a) is correct in relation to the contract or component;

(b)

determine whether the amount of any adjustment mentioned in paragraph (1)(b) is appropriate;

(c)

determine whether the adjustment mentioned in paragraph (1)(c) is in accordance with these Regulations.”;

for paragraph (5) substitute—

“(5)

If the SSRO determines that—

(a)

the baseline profit rate mentioned in paragraph (1)(a) is incorrect;

(b)

any adjustment mentioned in paragraph (1)(b) is inappropriate; or

(c)

the adjustment mentioned in paragraph (1)(c) is not in accordance with these Regulations,

it may determine that the contract price is to be adjusted by a specified amount.”.