Paragraph 10 Contract profit rateI1I2

Section 18 (contract profit rate: supplementary) is amended as follows.

In subsection (2)(a)—

In subsection (2)(b), after “contract” insert “or component”.

In subsection (2)(c), after “those contracts” insert “or components of those contracts”.

For subsection (3)(a) substitute—

“(a)

may, on an application by a person within subsection (4), determine whether—

(i)

the baseline profit rate identified under step 1 in section 17(2) is correct in relation to a qualifying defence contract or a component of such a contract;

(ii)

an adjustment agreed under any of steps 2 to 4 in section 17(2) is appropriate;

(iii)

an adjustment agreed under step 3 in section 17(2) is in accordance with the regulations.”