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

This paragraph applies where—

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

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.

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.

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