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1 Availability Of Information Page 1 of 5 DEFCON 648A Edition 07/04 1. The Contractor shall at all times during the course of the Contract and for a period of two years after final payment of all sums due under the Contract or for a period of three years after the final delivery or completion of performance under the Contract, whichever period expires sooner, maintain: a) in accordance with his normal procedures, a record of: i. the manufacturing facilities and production plans employed by him for the supply of Articles; and ii. the costs incurred by him in the execution of the Contract (including, for example, details of times taken and of wage rates paid); and b) a record of such further particulars of the costs of production of the Articles or performance of the Services as the Authority may from time to time reasonably require (including particulars of the costs of production or performance of such substantial parts of any of the Articles or Services as the Authority may specify in any such requirement) as being necessary for the purpose of determining such costs with reasonable accuracy: provided that a requirement under this Clause shall not apply so as to impose any obligation on the Contractor to maintain a record of any such further particulars as aforesaid in respect of any costs of production or performance of Services incurred before the date on which that requirement is made. 2. At any time after prices in respect of the Articles or Services have been finally fixed and after delivery or performance under the Contract is substantially complete but within the period during which Clause 1 applies the Contractor shall, when requested by the Authority: a) furnish a summary of any of the costs mentioned in Clause 1 in the form and detail as required by DEFFORM 648A; and b) afford such facilities as the Authority may reasonably require for its representatives to visit the Contractor s premises and examine the records maintained under that Clause: provided that, in circumstances where no request has been made by the Authority, the Contractor may furnish a summary of any of the costs mentioned in Clause 1
2 Availability Of Information Page 2 of 5 in the form and detail as required by DEFFORM 648A, and subject to Clauses 3 and 4 of DEFCON If at any time during the course of the Contract the Authority notifies the Contractor that the said records are required for the purpose of assisting the Authority in fixing the prices of other articles or services of a similar or substantially similar kind to be supplied or performed under any other contract (whether made or under negotiation) between the Contractor and the Authority, the Contractor shall: a) furnish a relevant summary based on the format of DEFFORM 648A and the costs mentioned in Clause 1, and such additional information as may reasonably be required by the Authority and agreed in the Contract, and afford the facilities mentioned in sub-clause 2.b); and b) afford such other facilities as the Authority may reasonably require for its representatives to visit the Contractor s premises and examine any or all of the processes involved in the manufacture of Articles or performance of the Services. 4. If it is established by reference to the records maintained in accordance with Clause 1 and summarised in a DEFFORM 648A statement that either: a) the outturn profit exceeds the profit allowance applicable to the Contract Price in accordance with the relevant Government Profit Formula by a sum greater than five percent of the Contract Price; or b) the outturn costs exceed the Contract Price by a sum greater than five per cent of the Contract Price; (or those percentages that are agreed between the Authority and the Joint Review Board Advisory Committee and issued by the Review Board in the annual and triennial review Reports on the Profit Formula for Non-competitive Government Contracts published by the Stationery Office at the date of Contract); then i. if sub-clause 4.a) applies, the Authority shall reduce the Contract Price by an amount equivalent to seventy five per cent of the sum greater than five per cent of the Contract Price but only if that amount exceeds 250,000 and not otherwise, and the Contractor shall pay to the Authority any sum then due; ii. if sub-clause 4.b) applies, the Authority shall increase the Contract Price by an amount equivalent to seventy five per cent of the sum greater than five per cent of the Contract Price but only if that sum exceeds 250,000 and not otherwise, and the Authority shall pay to the Contractor any sum then due;
3 Availability Of Information Page 3 of 5 unless either the Authority or the Contractor notifies the other party in writing of their intention to refer the circumstances of the outturn to the Review Board in accordance with DEFCON 650A, and does refer the matter within 30 days of that notice. 5. If, in connection with or for the purposes of the Contract, any subcontract, the value of which exceeds 150,000 (or such greater amount as agreed between the parties and specified in the Contract), is placed by the Contractor with a subcontractor (including a subsidiary company or firm) otherwise than by acceptance of the lowest acceptable competitive tender, then except in so far as the Authority otherwise agrees in writing the Contractor shall: a) include in that subcontract the provisions set out in the Appendix to DEFCON 648 unless the Authority has priced or indicated its intention to be associated with the pricing of the subcontract and its post costing and the subcontract value exceeds 5,000,000 in which case the Appendix to DEFCON 648A shall apply; and b) take all reasonable steps to secure the due observance by the subcontractor of his obligations under the said provisions. 6. The Authority and the Contractor agree to take all necessary steps to give prompt effect to the outcome of the operation of Clause 4 of the Appendix to this Condition, and that if a payment of any amount should be made by the subcontractor or by the Authority that amount shall be paid direct to the party entitled to it in pursuance of the outcome. Nothing in this Clause shall relieve the Contractor of his responsibilities under the Contract. 7. Except in so far as it is necessary for proper compliance with DEFCON 650A and DEFCON 651A, or with the requirements of any person duly acting in the capacity of an arbitrator under any provision of the Contract, the Authority shall not disclose to any person outside Her Majesty s Government in the United Kingdom any information obtained by it in consequence of the application of any of the provisions of this Condition. APPENDIX TO DEFCON 648A Provisions To Be Included In Subcontracts Including Those With A Subsidiary Company Or Firm (See Clause 5 of DEFCON 648A) 1. The subcontractor shall, at all times during the course of this subcontract and for a period of two years after final payment of all sums due under this subcontract or a period of three years after the final delivery or completion of performance under this subcontract, whichever period expires sooner, maintain:
4 Availability Of Information Page 4 of 5 a) in accordance with his normal procedures, a record of: i. the manufacturing facilities and production plans employed by him for the supply of the articles under this subcontract; and ii. the costs incurred by him in the execution of this subcontract (including, for example, details of times taken and of wage rates paid); and b) a record of such further particulars of the costs of production of the said articles or performance of the said services as the Authority (that is to say, the Secretary of State for Defence) may from time to time reasonably require (including particulars of the costs of production or performance of such substantial parts of any of the said articles or services as the Authority may specify in any such requirement) as being necessary for the purpose of determining such costs with reasonable accuracy. Provided that a requirement under this Clause shall not apply so as to impose any obligation on the subcontractor to maintain a record of any such further particulars as aforesaid in respect of any costs of production or performance incurred before the date on which that requirement is made. 2. At any time after prices in respect of the articles to be supplied or the services to be performed under this subcontract have been finally fixed and after delivery or performance thereunder is substantially complete but within the period during which Clause 1 above applies the subcontractor shall, when requested by the Authority: a) furnish a summary of any of the costs mentioned in the said Clause 1 in the form and detail required by DEFFORM 648A; and b) afford such facilities as the Authority may reasonably require for its representatives to visit the subcontractor s premises and examine the records maintained under that Clause: provided that, in circumstances where no request has been made by the Authority, the subcontractor may furnish a summary of any of the costs mentioned in Clause 1 in the form and detail as required by DEFFORM 648A, and subject to Clauses 4 and 5 of the Appendix to DEFCON If at any time during the course of this subcontract the Authority notifies the subcontractor that the said records are required for the purpose of assisting the Authority in fixing prices under any other contract (whether made or under negotiation) where the subcontractor is to supply articles or perform services of a similar or substantially similar kind either as a contractor to the Authority or as a subcontractor to a contractor to the Authority, the subcontractor shall:
5 Availability Of Information Page 5 of 5 a) furnish a relevant summary based on the format of DEFFORM 648A and the costs mentioned in Clause 1, and such additional information as may reasonably be required by the Authority and agreed in the subcontract, and afford the facilities mentioned in sub-clause 2.b); and b) afford such other facilities as the Authority may reasonably require for its representatives to visit the subcontractor s premises and examine any or all of the processes involved in the manufacture of the articles to be supplied or the services to be performed under this subcontract. 4. If it is established by reference to the records maintained in accordance with Clause 1 that either: a) the outturn profit exceeds the profit allowance applicable to the subcontract price in accordance with the relevant Government Profit Formula by a sum greater than five percent of the subcontract price; or b) the outturn costs exceed the subcontract price by a sum greater than five per cent of the subcontract price (or those percentages that are agreed between the Authority and the Joint Review Board Advisory Committee and issued by the Review Board in the annual and triennial review Reports on the Profit Formula for Non-competitive Government Contracts published by the Stationery Office at the date of Contract) then i. if sub-clause 4.a) applies, the subcontractor shall pay to the Authority an amount equivalent to seventy five per cent of the sum greater than five per cent of the subcontract price but only if that amount exceeds 250,000 and not otherwise; ii. if sub-clause 4.b) applies, the Authority shall pay to the subcontractor a sum equivalent to seventy five per cent of the sum greater than five per cent of the subcontract price but only if that sum exceeds 250,000 and not otherwise; unless either the Authority or the subcontractor notifies the other party in writing of their intention to refer the circumstances of the outturn to the Review Board in accordance with DEFCON 651A, and does refer the matter within 30 days of that notice. 5. The Contractor and the subcontractor agree to take all necessary steps to give prompt effect to the outcome of the operation of Clause 4, and that if a payment of any amount should be made by the subcontractor or by the Authority that amount shall be paid direct to the party entitled to it in pursuance of the outcome.'
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