Regulation 19E Competed rates applied to uncompeted volumesF1

(1)

The competed rates applied to uncompeted volumes (“CRUV”) method of determining the price of a qualifying defence contract or component of such a contract may be used in the circumstances specified in paragraph (3).

(2)

Where the CRUV method is used, the price is determined in accordance with paragraph (4).

(3)

The CRUV method may be used if—

(a)

a framework agreement is entered into in accordance with regulation 9(1) or 60(1);

(b)

the contract is awarded in accordance with regulation 9(1) or 60(1);

(c)

in relation to the goods, works or services to be provided under the contract—

(i)

the price will be agreed using the applicable unit prices or rates contained in the framework agreement (“the competed rates or prices”); and

(ii)

the volume of the goods, works or services to be provided will not have been subject to a competitive process; and

(d)

the conditions in regulation 9(3) or 60(3) apply to the framework agreement.

(4)

The method of determining the price is to—

(a)

estimate the volume of goods, works or services required in way which secures that the volume is—

(i)

appropriate;

(ii)

attributable to the contract; and

(iii)

reasonable in the circumstances; and

(b)

apply that estimate to the relevant competed rates or prices in accordance with the terms of the framework agreement.

Annotations

Textual amendments

F1: Pt. 3 Ch. 3 inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 24