Paragraph 8 Change to a contractual requirement: contract or ... component which uses cost-plus method – distinguishable costsF1F11

This paragraph applies where—

For the purposes of sub-paragraph (1)(c), “original allowable costs” means the allowable costs under the contract or F6... component before the contract is amended.

The price payable in respect of the F7pricing amendment is to be determined in accordance with the following formula—

where—

1. (a)

   “CPR” is the contract profit rate for the F8pricing amendment, and

2. (b)

   “AC” means the primary contractor’s allowable costs resulting from the F9pricing amendment, as determined in accordance with the cost-plus method.

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