Regulation 2 Amendment to regulation 11 of the Single Source Contract Regulations 2014

Regulation 11 (steps in determining contract profit rate) of the Single Source Contract Regulations 2014^f1 is amended as follows.

In paragraph (6)—

After paragraph (6), insert—

“(6A)

In specifying the relevant provisions, the Secretary of State must also specify an outcome that must be achieved in order for the incentive adjustment to be payable, and that outcome must—

(a)

be capable of objective verification; and

(b)

relate to the performance of the relevant provisions.

(6B)

If assessing the outcome or the performance of the relevant provisions includes any element of judgement by one or both of the contracting parties, or any person associated with the primary contractor^f2, that element must be capable of being determined by a suitably qualified independent person.

(6C)

In determining the amount of the incentive adjustment, the Secretary of State must be satisfied that it is reasonable in the circumstances, having regard to the potential public benefit arising from its use.”.