Paragraph 9 Change to a contractual requirement: contract or ... component which uses cost-plus method – costs not distinguishableF1F11

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 under the contract, or F9... component, after the time of agreement, as determined in accordance with the cost-plus method.

For the purposes of sub-paragraph (3), no account is to be taken of any costs incurred by the primary contractor before the contract is amended.

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