The Single Source Contract Regulations 2014
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Change 1
19A Commercial pricing
(1) The commercial pricing method of determining the price of a qualifying defence contract or a component of such a contract may be used in the circumstances specified in paragraph (3). (2) Where the commercial pricing method is used, the price is determined in accordance with paragraph (6). (3) Unless paragraph (4) applies, the commercial pricing method may be used if— (a) the Secretary of State is satisfied that the primary contractor has supplied goods, works or services under a contract to the same or substantially the same specifications— (i) to the Secretary of State under a contract awarded as a result of a competitive process; (ii) to another party under a contract placed following a process which would satisfy the requirements of regulation 59 had the party purchasing the goods or services been a contracting authority; or (iii) to any other person in an open market where such goods, works or services are offered for sale; or (b) the Secretary of State is satisfied that a supplier (who may be the primary contractor) has supplied goods, works or services under a contract to the same or substantially the same specifications to other parties in a competitive environment. (4) This paragraph applies if the proposed contract is for the supply of goods, works or services and the Secretary of State has made any direct payment for the development of those goods, works or services. (5) Where the commercial pricing method may be used by virtue of more than one contract described in paragraph (3) (“the relevant contracts”), the Secretary of State must determine a reasonable price for the goods, works or services— (a) by reference to all of the relevant contracts; or (b) where it is not practicable to determine a reasonable price by reference to all of the relevant contracts, by reference to a representative sample of the relevant contracts. (6) The method of determining the price is— (a) take— (i) the price for which the goods, works or services were supplied under the contract described in paragraph (3); or (ii) where paragraph (5) applies, the reasonable price determined under that paragraph; (b) add or subtract from that price a reasonable adjustment in respect of differences in— (i) volume; (ii) specification; (iii) other terms of supply; (iv) a change in economic conditions; (v) a change in technology; (vi) a change in performance of the goods, works or services. (7) The primary contractor must provide to the Secretary of State all information within its possession that is relevant for the purposes of establishing— (a) whether goods, works or services have been supplied as described in paragraph (3)(a) or (b); and (b) whether any price determined under paragraph (5) or adjustment determined under paragraph (6)(b) is reasonable.
19A Commercial pricing
(1) The commercial pricing method of determining the price of a qualifying defence contract or a component of such a contract may be used in the circumstances specified in paragraph (3). (2) Where the commercial pricing method is used, the price is determined in accordance with paragraph (6). (3) Unless paragraph (4) applies, the commercial pricing method may be used if— (a) the Secretary of State is satisfied that the primary contractor has supplied goods, works or services under a contract to the same or substantially the same specifications— (i) to the Secretary of State under a contract awarded as a result of a competitive process; (ii) to another party under a contract placed following a process which would satisfy the requirements of regulation 59 had the party purchasing the goods or services been a contracting authority; or (iii) to any other person in an open market where such goods, works or services are offered for sale; or (b) the Secretary of State is satisfied that a supplier (who may be the primary contractor) has supplied goods, works or services under a contract to the same or substantially the same specifications to other parties in a competitive environment. (4) This paragraph applies if the proposed contract is for the supply of goods, works or services and the Secretary of State has made any direct payment for the development of those goods, works or services. (5) Where the commercial pricing method may be used by virtue of more than one contract described in paragraph (3) (“the relevant contracts”), the Secretary of State must determine a reasonable price for the goods, works or services— (a) by reference to all of the relevant contracts; or (b) where it is not practicable to determine a reasonable price by reference to all of the relevant contracts, by reference to a representative sample of the relevant contracts. (6) The method of determining the price is— (a) take— (i) the price for which the goods, works or services were supplied under the contract described in paragraph (3); or (ii) where paragraph (5) applies, the reasonable price determined under that paragraph; (b) add or subtract from that price a reasonable adjustment in respect of differences in— (i) volume; (ii) specification; (iii) other terms of supply; (iv) a change in economic conditions; (v) a change in technology; (vi) a change in performance of the goods, works or services. (7) The primary contractor must provide to the Secretary of State all information within its possession that is relevant for the purposes of establishing— (a) whether goods, works or services have been supplied as described in paragraph (3)(a) or (b); and (b) whether any price determined under paragraph (5) or adjustment determined under paragraph (6)(b) is reasonable.
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