1.  VOLUME ADJUSTMENT111

1.1  The Total Volume Adjustment in respect of any Contract Month shall be calculated in accordance with the following formula:

TVA = VAC + VAW

where:

1.1.1  TVA is the Total Volume Adjustment;

1.1.2  VAC is the price adjustment (if any), made in respect of the number of meals prepared in accordance with the Service Level Specifications in respect of the Catering Service, calculated in accordance with paragraph 1.2 (Volume Adjustment) of this Section F; and

1.1.3  VAW is the price adjustment (if any), made in respect of the volume of Non-Clinical Waste disposed of in accordance with the Service Level Specifications in respect of the Waste Service, calculated in accordance with paragraph 1.3 (Volume Adjustment) of this Section F.

1.2  For the purpose of paragraph 1.1.2 (Volume Adjustment) of this Section F the price adjustment in respect of the number of meals provided in accordance with the Catering Service Specific Specification in any Contract Month ("VAC") shall be calculated in accordance with the following formula:

where:

1.2.1  ICP is the initial annual patient catering price as identified in Appendix B to this Part 18 of the Schedule (Payment Mechanism);

1.2.2  BVC is the base number of meals as set out in Appendix D to this Part 18 of the Schedule (Payment Mechanism);

1.2.3  RPIn is the value of the RPI published or determined with respect to the month of February which most recently precedes the relevant Contract Year;

1.2.4  RPIo is the value of the RPI published or determined with respect to the Indexation Base Month;

1.2.5  ABVC is the actual number of meals received by the Board in the relevant Contract Month; and

1.2.6  NM is the number of days in the relevant Contract Month.

For the purposes of paragraph 1.2.6 above, in the Contract Month in which Payment Commencement Date [1]112 falls and in the last Contract Month of the Project Term NM shall be the actual number of days in the Contract Month from and including Payment Commencement Date [1] (for the first month) and (for the last month) up to and including the last day of the Project Term.

1.3  For the purpose of paragraph 1.1.3 (Volume Adjustment) of this Section F the price adjustment in respect of the volume of Non-Clinical Waste removed in accordance with the Waste Service Specific Specification in any Contract Month ("VAW") shall be calculated in accordance with the following formula:

where:

1.3.1  IWP is the initial annual waste management price as identified in Appendix B to this Part 18 of the Schedule (Payment Mechanism);

1.3.2  BVW is the base volume of Non-Clinical Waste as set out in Appendix D to this Part 18 of the Schedule (Payment Mechanism);

1.3.3  RPIn is the value of the RPI published or determined with respect to the month of February which most recently precedes the relevant Contract Year;

1.3.4  RPIo is the value of the RPI published or determined with respect to Indexation Base Month;

1.3.5  ABVW is the actual volume of Non-Clinical Waste removed by Project Co in the relevant Contract Month; and

1.3.6  NM is the number of days in the relevant Contract Month.

For the purposes of paragraph 1.3.6 above, in the Contract Month in which Payment Commencement Date [1] falls and in the last Contract Month of the Project Term NM shall be the actual number of days in the Contract Month from and including Payment Commencement Date [1] (for the first month) and (for the last month) up to and including the last day of the Project Term.

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111  Waste and Catering adjustments assumed for illustrative purposes. Paragraph 1 may not be used at all if no Volume Adjustments

112  Use of Payment Commencement Date "1" assumes phasing