33. It is an important principle of the Change process that the MOD must be able to obtain appropriate levels14 of disclosure of information relating to costs claimed by the contractor. Disclosure will be the MOD's first priority, to ensure transparency of pricing. However, it is also an accepted principle in single source defence contracting that requests by acquisition team members for further information relating to a Change should be limited to details which are required for price fixing purposes.15
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14 Whether or not it is appropriate for the MOD to pursue a high degree of disclosure will depend, in part, on whether the Change is a Small Works Change or of higher value. If it is a Small Works Change, we recommend that a Schedule of Rates approach is taken to pricing, which will limit the amount of discussion over the costs of the Change.
15 See paragraph 9 of the 1968 Government Profit Formula Agreement: "The Government will therefore limit any demand for further information to what can reasonably be shown to be necessary for price fixing purposes."