This user guide, template and glossary are discontinued since the launch of the new DefCARS on 15 March and are therefore for reference purposes only.
MS Excel Spreadsheet, 632KB
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The purpose of the rates comparison report (RCR) is to provide details on the estimated and actual recovery rates used on each qualifying defence contract (QDC) or qualifying subcontract (QSC) held by a qualifying business unit (QBU).
The information in this report will be used to establish any systematic over and under recovery of overhead costs in relation to the rates system. In the event of any systematic over or under recovery, the root causes should be established, for example by making appropriate use of open book rights, before any consequential action is taken.
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.
This report records the following information:
- provides for each cost recovery rate used in determining the contract price;
- the actual amount of the cost recovery base attributable to the contract;
- the amount of the cost recovery base used in determining the contract price; and
- the cost recovery rate used in determining the contract price.
The RCR is due within two months after receiving notice from the Secretary of State.