Estimated rates agreement pricing statement

Contents: This section of the SSRO's guidance describes the Estimated rates agreement pricing statement (ERAPS) whose requirements are set out in regulation 38.

Key message: Before completing the Estimated Rates Agreement Pricing Statement for the first time, contractors should familiarise themselves with regulation 38.

6.1

The designated person is required to provide, for each relevant financial year, an Estimated Rates Agreement Pricing Statement (ERAPS) for each of its pricing QBUs that was a pricing QBU in relation to the fnancial year immediately preceding the relevant fnancial year. The information required in the ERAPS is summarised in Table 9.

6.2

The Secretary of State may give written notice to the designated person requiring a further ERAPS for a QBU for the relevant financial year, but may only require one further report for each QBU. The designated person is required to submit the further report within three months of receiving the written notice.

6.3

Against each of the following requirements the supplier must confirm if it is applicable to this claim (Yes/No). If Yes, then no justifcation is required. If No, the supplier must explain why the assumption is not relevant to the claim. Against each requirement, information can be provided that meets the requirement.

Table 9 – Information required in the

Category	Required information
Cost recovery base (CRB)	A description of the facts and assumptions used in calculating each cost recovery base listed in the ERCR.
Estimates	A statement as to whether the volume of each cost recovery base has been estimated in a manner consistent with equivalent estimates in previous years and, if not, a description of any changes.
Budget and quantifed analysis	A description of the facts and assumptions used in setting the budget for the QBU, (approved in accordance with the QBU’s internal budgetary procedures.) A description of the facts and assumptions used in making any adjustments made between the budget and costs claimed for recovery through cost recovery rates. A description of the facts and assumptions used in making any adjustments for costs incurred in or forecast for one relevant accounting period but recovered in other relevant accounting periods. A description of the facts and assumptions used in calculating the QBU costs estimated to be recovered as direct costs under any QDC, QSC, or other defence contract. A description of the facts and assumptions used in calculating the QBU estimated costs allocated to each cost recovery base.
Indices and rates	A description of indices and rates used in calculating the estimated costs included in the ERCR, including for each its source (including that source’s version or date) and an explanation of why its use was considered to be appropriate.
Staffing	A description of all material assumptions regarding changes to costs relating to employment. A description of all material assumptions used to derive any estimated staf head count upon which estimated costs in the ERCR are based.
Over-capacity	A description of all material assumptions used in calculating any costs relating to decreasing over-capacity that have been included in the cost recovery rates.
Novel or unusual costs	A description of all material assumptions regarding signifcant costs that have been included in the cost recovery rates and that are novel or unusual.

Note: The annotations on this page are applied to underlying text taken from the SSRO's reporting guidance, available at ssro.gov.uk. Errors or ommisions can occur, or updates may not be reflected. Always check the source document.