The purpose of the estimated rates agreement pricing statement (ERAPS) is to facilitate an understanding of the facts and assumptions behind the estimated rates claim report and enable trend analysis.
The estimated rates agreement pricing statement provides the SSRO and the MOD with an audit trail of the assumptions used to calculate the estimated rates. This will be used as the basis of any future referrals to the SSRO.
The minimum value of the qualifying defence contract or qualifying subcontract for the reporting requirement to be imposed is:
- £20 million for the financial years ending on 31 March 2016 and 31 March 2017; or
- £50 million for subsequent financial years.
The ERAPS is only applicable for pricing qualifying business units (QBUs).
This report records the following information:
- a description of the facts and assumptions used in calculating each cost recovery base listed in the estimated rates claim report;
- information as to whether the amount 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; and
- a description of the facts and assumptions used in calculating the detail in the estimated rates claim report – Regulation 36.
Please note the template allows for the contractor to attach documentation to the report in an annex rather than populating the template with the detailed assumptions/facts used in calculating the rates.
The ERAPS is due with the estimated rates claim report for the same relevant financial year; or within three months of receiving a written notice from the Secretary of State.