Regulation 39 Substitution of regulation 51 (matters on which the SSRO must give an opinion)

For regulation 51^f1 substitute—

“Matters on which the SSRO must give an opinion

51

(1)

The matters relating to a proposed contract which are specified for the purposes of section 35(1)(a) (matters on which the SSRO must give an opinion) are—

(a)

where the proposed contract is to be priced using a default pricing method—

(i)

the appropriate amount of adjustment that should be made under step 2 or 4 of regulation 11;

(ii)

the appropriate amount of a group cost risk adjustment (regulation 13(2)), the deduction from costs associated with group profits (regulation 13(4)) or group capital servicing adjustment (regulation 13(5));

(iii)

any question relevant to the cost recovery rates that should be used to estimate likely allowable costs;

(iv)

the extent to which a particular cost would be an allowable cost;

(b)

where the proposed contract is to be priced using an alternative pricing method—

(i)

whether the circumstances specified for the use of the alternative pricing method exist;

(ii)

whether the price has been determined in accordance with the alternative pricing method;

(c)

whether any part of the proposed contract should be treated as a component of the contract because the conditions in regulation 9A(1) are met in relation to that part.

(2)

The matters relating to a contract which are specified for the purposes of section 35(1)(a) are—

(a)

if the contract price were to be re-determined under Part 2 of the Schedule, the matters mentioned in paragraph (1)(a) (read as if a reference to the proposed contract were a reference to the contract);

(b)

if the contract price were to be re-determined under Part 4 of the Schedule—

(i)

whether the circumstances specified in Part 4 of the Schedule for the re-determination of the contract price exist;

(ii)

whether the price has been re-determined in accordance with Part 4 of the Schedule or, where the Schedule requires the price to be re-determined using a contract pricing method, in accordance with that contract pricing method;

(c)

if the contract is amended so as to add a new component and the price payable under the component is determined in accordance with an alternative pricing method, the matters mentioned in paragraph (1)(b) (read as if a reference to the proposed contract were a reference to the new component);

(d)

if the contract price were to be re-determined under the Schedule, the matter mentioned in paragraph (1)(c) (read as if a reference to the proposed contract were a reference to the contract);

(e)

whether the Secretary of State has acted reasonably in exercising a power to require the contractor to provide information under regulation 30 (on-demand contract report).”.