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Paragraph 7 Change to a contractual requirement: contract or ... component not using cost-plus methodF1F10

(1)

This paragraph applies where—

(a)

the proposed pricing amendment will change a contractual requirement of the contract or of a F2... component of the contract, and

(b)

the F3default pricing method used for the contract or F4... component (as the case may be) is not the cost-plus method.

(2)

The price payable in respect of the F5pricing amendment must be determined in accordance with the following formula and may be a negative amount—

(CPR×AC)+AC

where—

  1. (a)

    “CPR” is the contract profit rate for the F6pricing amendment, and

  2. (b)

    “AC” means the amount (which may be a negative amount) by which the F7pricing amendment will change the original allowable costs.

(3)

For the purposes of sub-paragraph (2), “original allowable costs” means the allowable costs under the contract or F8... component, as determined for the purposes of calculating the original contract price.

(4)

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

(a)

the original contract price, and

(b)

the price payable in respect of the F9pricing amendment.

Annotations

Textual amendments

F1

Sch. inserted (1.4.2019) by The Single Source Contract (Amendment) (No. 2) Regulations 2018 (S.I. 2018/1350), reg. 1(3), Sch. (with reg. 14)

F2

Word in Sch. para. 7(1)(a) omitted (1.4.2024) by virtue of The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(13)(b)(i)

F3

Word in Sch. para. 7(1)(b) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(13)(b)(ii)(aa)

F4

Word in Sch. para. 7(1)(b) omitted (1.4.2024) by virtue of The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(13)(b)(ii)(bb)

F5

Word in Sch. para. 7(2) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(13)(c)(i)

F6

Word in Sch. para. 7(2)(a) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(13)(c)(ii)

F7

Word in Sch. para. 7(2)(b) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(13)(c)(iii)

F8

Word in Sch. para. 7(3) omitted (1.4.2024) by virtue of The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(13)(d)

F9

Word in Sch. para. 7(4)(b) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(13)(e)

F10

Word in Sch. para. 7 heading omitted (1.4.2024) by virtue of The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(13)(a)

Notes on Schedule

Textual amendments

F2

Word in Sch. substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(2)

Notes on Part 2

Textual amendments

F2

Sch. Pt. 2 heading substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 43(7)