Regulation 2 Interpretation

In these Regulations—

• “the Act” means the Defence Reform Act 2014, and references to sections and Schedules are references to sections of, and Schedules to, that Act;

• “business unit” means either—

  1. (a)

     a unit—

     1. (i)

        which carries on any activities for the purposes of an undertaking; and

     2. (ii)

        for which separate financial accounting statements are produced; or

  2. (b)

     an undertaking, or group of two or more undertakings, for which a single set of financial accounting statements is produced which is separate from the financial accounting statements of each of those undertakings;

• “contract completion date” has the meaning given by regulation 4;

• “contract price” means—

  1. (a)

     the contract price determined in accordance with regulation 10; or

  2. (b)

     if the contract price has been re-determined in accordance with regulation 14, the price as re-determined;

• “cost recovery base” means the unit of measure to which a cost recovery rate is applied in order to calculate a cost under a contract;

• “cost recovery rate” means a rate calculated for a business unit that is used to determine a cost payable under a contract, being a rate per unit of a cost recovery base that is multiplied by the quantum of that cost recovery base to determine the cost;

• “deliverable” means any goods, works or services which—

  1. (a)

     are provided under a contract; and

  2. (b)

     can be described using an output metric;

• “further group sub-contract” has the meaning given by regulation 12(6);

• “group sub-contract” has the meaning given by regulation 12(5);

• “output metric” means a quantifiable description of any goods, works or services (including a number, weight, dimension, time or physical capability, but not including a monetary value);

• “parent undertaking” has the meaning given by section 1162 of the Companies Act 2006^f1;

• “regulated pricing method” means one of the six pricing methods described in paragraphs (4), (5), (6), (7) and (8), (9) and (10), or (11) of regulation 10;

• “SME” has the meaning given in Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises^f2;

• “TCIF adjustment” means an adjustment made under section 16(1)(b);

• “the time of agreement” means—

  1. (a)

     in the case of a contract which is a qualifying defence contract by virtue of section 14(3), or a qualifying sub-contract—

     1. (i)

        the date the contract is entered into; or

     2. (ii)

        if the price payable under the contract is re-determined under regulation 14, the date of that re-determination;

  2. (b)

     in the case of a contract which is a qualifying defence contract by virtue of section 14(4) or (5)—

     1. (i)

        the date of the amendment mentioned in section 14(4)(c) or (5)(b); or

     2. (ii)

        if the price payable under the contract is re-determined under regulation 14, the date of that re-determination;

• “undertaking” has the meaning given by section 1161(1) of the Companies Act 2006;

• “working day” means any day excluding—

  1. (a)

     Saturday, Sunday, Christmas Day, Good Friday or a bank holiday under the Banking and Financial Dealings Act 1971^f3; and

  2. (b)

     where a person gives the Secretary of State and the SSRO no less than 30 days’ written notice of its intention to treat a day as a holiday, that day.

A reference to a report provided under Part 5 includes a contract pricing statement (regulation 23), a contract reporting plan (regulation 24), a contract costs statement (regulation 29), and information provided under regulation 30 (on-demand contract report).