Rates comparison report

Key message: Before completing the Rates comparison report for the first time, contractors should familiarise themselves with regulation 39.

7.1

The Secretary of State may give written notice to the designated person requiring a Rates Comparison Report (RCR) for one or more pricing QBUs for any relevant fnancial year. The RCR is only required if the Secretary of State demands it. The Secretary of State may only require one RCR for a QBU in a relevant financial year.

7.2

If a RCR is required, then it must provide a list of all QDCs and QSCs to which the designated person or an associated person is a party that:

1. have a contract completion date after the frst day of the relevant accounting period; and
2. have costs that have or will be calculated using a cost recovery rate that relates to the costs of the QBU.

7.3

A range of basic information is required to be provided in the RCR in relation to each listed QDC and QSC, namely:

1. any unique identifying number allocated to the contract by the contractor;
2. any unique identifying number allocated to the contract by the MOD;
3. any title given to the contract;
4. the date the contract was entered into;
5. the regulated pricing method or methods used in determining the contract price; and
6. whether the contract is a QDC or QSC.

7.4

The RCR must state the cost recovery rates used in each listed QDC and QSC. It is required to also specify the actual value of each of the rates, as provided in the QBUACAR.

7.5

The RCR must specify the following for each cost recovery rate used in determining or re-determining the contract price of each listed QDC and QSC:

1. the actual amount of the cost recovery base attributable to the contract;
2. the amount of the cost recovery base used in determining the contract price; and
3. the cost recovery rate used in determining the contract price.