Paragraph 6 Amendment affecting a defined element of allowable costsF1

This paragraph applies where—

In this paragraph “qualifying F5default pricing method” means a pricing method described—

The price payable in respect of the F6pricing amendment must be determined in accordance with the following formula—

where—

1. (a)

   “CPR” is the contract profit rate for the F7pricing amendment, and

2. (b)

   “AC” means the defined element of allowable costs after it is changed, determined in accordance with the qualifying F8default pricing method used for the contract or F9... component.

The price payable under the amended contract is the total of—

For the purposes of sub-paragraph (4), “the adjustment amount” is the amount of the original contract price which can be attributed to the defined element of allowable costs that is being changed.