5. The Department exercises its rights to seek cost information on contracts after prices have been agreed
for three main reasons:
(a) to assist in the pricing of follow-on contracts,
(b) to assess the accuracy of estimating practices, and
(c) to provide information for a selective scrutiny of the outcome and so that either side may refer the contract to the Review Board for a possible price adjustment, in accordance with contract conditions (SC48 or DEFCON 648). Since July 2004 there has also been provision (DEFCON 648A) for "automatic" sharing of excess profits and losses on firm/fixed price contracts over £5 million in value, without need for referral to the Review Board (although either party may still refer to the Board if they believe 648A sharing provisions would produce an inequitable outcome).