{
  "url": "https://openlegislation.uk/single-source-contract-regulations-2014/regulation-10",
  "json_url": "https://openlegislation.uk/single-source-contract-regulations-2014/regulation-10.json",
  "legislation": "uksi/2014/3337",
  "legislation_title": "The Single Source Contract Regulations 2014",
  "legislation_url": "https://openlegislation.uk/single-source-contract-regulations-2014",
  "path": "regulation/10",
  "kind": "regulation",
  "number": "10",
  "heading": "Default pricing of contracts",
  "text": "(1) The price payable under a qualifying defence contract or component of such a contract to the primary contractor must be determined in accordance with the formula—\n( C P R × A C ) + A Cwhere—\na“CPR” is the contract profit rate for the contract or component, determined in accordance with regulation 11; and\nb“AC” means the primary contractor's allowable costs (see section 20), determined in accordance with one of the six default pricing methods described in paragraphs (4) to (11) below.\n(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\nFirm pricing method\n(4) Under the firm pricing method, the allowable costs are the allowable costs as estimated at the time of agreement.\nFixed pricing method\n(5) Under the fixed pricing method, the allowable costs are the allowable costs as—\n(a) estimated at the time of agreement; and\n(b) adjusted in accordance with changes in specified indices or rates between the time of agreement and a specified time (and different times, indices or rates may be specified in relation to different allowable costs).\nCost-plus pricing method\n(6) Under the cost-plus pricing method, the allowable costs are the actual allowable costs determined during the contract or after the contract completion date or component completion date.\nEstimate-based fee pricing method\n(7) Under the estimate-based fee pricing method, the allowable costs by which the CPR is multiplied are the allowable costs as—\n(a) estimated at the time of agreement; and\n(b) may be adjusted in accordance with changes in specified indices or rates between the time of agreement and a specified time (and different times, indices or rates may be specified in relation to different allowable costs).\n(8) The allowable costs which are added to the product of the CPR and the allowable costs determined in accordance with paragraph (7) are the actual allowable costs determined during the contract or after the contract completion date or component completion date.\nVolume-driven pricing method\n(9) Under the volume-driven pricing method, the allowable costs are the allowable costs per unit of volume multiplied by the actual volume of output of the contract or component.\n(10) The allowable costs—\n(a) must be estimated at the time of agreement; and\n(b) may be adjusted in accordance with changes in specified indices or rates between the time of agreement and a specified time (and different times, indices or rates may be specified in relation to different allowable costs).\nTarget pricing method\n(11) Under the target pricing method, the allowable costs—\n(a) must be estimated at the time of agreement;\n(b) may be, or may include, allowable costs per unit of volume multiplied by the actual volume of output of the contract or component; and\n(c) may be adjusted in accordance with changes in specified indices or rates between the time of agreement and a specified time (and different times, indices or rates may be specified in relation to different allowable costs).\n(12) In this regulation, “specified” means specified in the contract at the time of agreement.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in reg. 10(1) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(b)(i)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in reg. 10(1)(a) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(b)(ii)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Word in reg. 10(1)(b) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(b)(iii)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Reg. 10(2) omitted (1.4.2024) by virtue of The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(c)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Reg. 10(3) omitted (1.4.2024) by virtue of The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(c)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in reg. 10(6) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(d)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Reg. 10(7) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(e)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in reg. 10(8) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(f)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in reg. 10(9) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(g)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Reg. 10(11) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(h)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in reg. 10 heading substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 13(a)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2014/3337/regulation/10",
    "retrieved_at": "2026-10-28T23:53:13.107571+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}