3.2  Price

The price of the Group A Vehicles, Group B Vehicles, Grit Bins and Stock shall be calculated as follows:

(a)  Group A Vehicles

The price of each Group A Vehicle purchased by the Service Provider in accordance with this Part 3 of Schedule 2 (Mobilisation) shall be calculated in accordance with the following formula:

Where:

GAVSP is the Group A Vehicle Sale Price;

PP is the purchase price of the Group A Vehicle paid by the Authority as set out in the column headed Purchase Price in Table 1 of Appendix 1 to this Part 3 of Schedule 2 (Mobilisation);

UL is the number of years of useful life remaining in the Group A Vehicle as set out in the column headed Useful Life in Table 1 of Appendix 1 to this Part 3 of Schedule 2 (Mobilisation);

WL is the whole life expectancy of the Group A Vehicle as set out in the column headed Whole Life Expectancy in Table 1 of Appendix 1 to this Part 3 of Schedule 2 (Mobilisation); and

D is [♦] applied as a percentage to the formula to represent the expected depreciation in value of the Group A Vehicle for the remainder of its useful life.

(b)  Group B Vehicles and Grit Bins

The price of each Group B Vehicle and each Grit Bin purchased by the Service Provider in accordance with this Part 3 of Schedule 2 (Mobilisation) shall be one penny.  

(c)  Stock

The price for all Stock purchased by the Service Provider in accordance with this Part 3 of Schedule 2 (Mobilisation) shall be calculated in accordance with the following formula:

Where:

SSP is the Stock Sale Price;

ST is each type of Stock purchased by the Service Provider;

PP is the purchase price of each unit of the relevant type of Stock paid by the Authority as set out in the column headed Purchase Price per Unit in Table 3 of Appendix 1 to this Part 3 of Schedule 2 (Mobilisation) multiplied by u                %; and

X is the number of units of the relevant type of Stock purchased by the Service Provider in accordance with this Part 3 of Schedule 2 (Mobilisation).

(d)  VAT

The prices calculated in accordance with this paragraph 3.2 are exclusive of any applicable VAT payable by the Service Provider.