Content
Pricing - Equality Of Information
This page is an extract from the full topic guidance on Pricing – Equality of Information [57KB PDF]. It details any Constraints associated with Pricing - Equality of Information, provides a summary of the Authoritative Guidance and lists any essential reading, further reading or associated documents.
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Non-competitive contracts are priced on the basis of
'equality of information' (E of I). This principle is enshrined in the 1968
Government Profit Formula Agreement which has now been carried forward in the
2006 Annual Review of the Profit Formula
for Non-Competitive Government Contracts.
Equality of information is effected through DEFCON 643 (Equality of Information) [24KB PDF]
and the E of I Pricing Statement. This Statement should be completed for all
non-competitive contracts and amendments in excess of 250K (two hundred and fifty thousand pounds sterling).
The E of I Pricing Statement contains a confidentiality
undertaking that is binding on both parties and the Ministry of Defence (MOD) expects contractors to be
prepared to release all information material to the settlement of fair and
reasonable prices, regardless of origin. Without such information acquisition
teams may be unable to negotiate prices and place a contract - this should be
made clear to the contractor.
MOD accepts that the E of I principle is mutual and has
agreed a statement about the release of information to contractors. Within the
constraints of Government policy, MOD should be as open as possible about any
pending procurement decisions that may affect the usage of a company's capacity
and, through that, its overhead rates.
The E of I Pricing Statement should be signed before the
contract is let. A period of up to a fortnight should be allowed to enable both
parties to check the validity of the information that they have provided before
they sign the Statement. This period is not an opportunity to re-open the prices
but rather to check that the data is still sound.
E of I Pricing Statements are vital to the process of
post costing and for references to the Review Board.
Associated Documents
Annex A - Equality Of Information - Pricing Statement [37KB DOC]
Annex B - Specimen Equality Of Information Check List [36KB DOC]
Annex C - CAAS Investigations And Price Negotiations: Release Of Information To Contractors [26KB PDF]
Essential Reading
Pricing - Team Approach topic
Pricing - Charging Rates topic
Pricing - NAPNOC topic
Pricing - Post Costing topic
Pricing - Government Profit Formula topic
Further Reading
National Audit Report Into Non-competitive Procurement In The MOD
Pricing - Subcontracts topic
Prime Contracting topic
