Common use of CONTRACT COSTS Clause in Contracts

CONTRACT COSTS. 1.1. The Commissioning Contract shall be managed as a block price contract in accordance with the following opening values. While this won’t affect the overall total there may be a future rebasing that is to be agreed between Mid Essex, North East Essex and West Essex CCGs. 1.2. Contributions will not be rebased during the life of the Commissioning Contract but a robust data set will be developed to inform future cost shares. Per Annum £000 % Essex CC 1,821 13.2% Southend UA 210 1.5% Thurrock UA 202 1.5% B&B CCG 1,723 12.5% CP&R CCG 914 6.6% Southend CCG 954 6.9% Thurrock CCG 1,045 7.6% Mid Essex CCG 1,884 13.7% North East Essex CCG 2,353 17.1% West Essex CCG 2,647 19.2% 1.3. The contract price payable to the Provider pursuant to the Commissioning Contract will be structured as follows: Year 1 Year 2 Year 3 1st year extension 2nd year extension Block Price 95% 85% 80% 80% 80% Potential retention or reduction in the contract price for achievement of key performance indicators or as a result of 5% 15% 20% 20% 20% 1.4. All Commissioners will be invoiced direct by the Provider. The Commissioners will be advised by the Lead Commissioner of the phasing arrangements, the payment date within the month/quarter and if payment needs to be withheld in accordance with KPIs or other Commissioning Contract provisions. Commissioners will ensure that payments are made in accordance with such advice from the Lead Commissioner. 1.5. The NHS tariff inflator/deflator is applicable to the Commissioning Contract and shall be applied to years 2 and subsequent years of the contract value subject to annual price reviews (there will be no guarantee of the price increasing should RPI outweigh the deflator.) 1.6. Any contract value deflations shall be applied pro-rata to the agreed Financial Contribution subject to any overall reduction not being applied to the ECC contribution until all other Commissioners have achieved a 10% reduction from the baselines set out in paragraph 2 above.

CONTRACT COSTS. 1.1. The Commissioning Contract shall be managed as a block price contract in accordance with the following opening values. While this won’t affect the overall total there may be a future rebasing that is to be agreed between Mid Essex, North East Essex and West Essex CCGs. 1.2. Subject to 1.1 above, Contributions will not be rebased during the life of the Commissioning Contract but a robust data set will be developed to inform future cost shares. Per Annum £000 % Essex CC 1,821 13.2% Southend UA 210 1.5% Thurrock UA 202 1.5% B&B CCG 1,723 12.5% CP&R CCG 914 6.6% Southend CCG 954 6.9% Thurrock CCG 1,045 7.6% Mid Essex CCG 1,884 13.7% North East Essex CCG 2,353 17.1% West Essex CCG 2,647 19.2% 1.3. The contract price payable to the Provider pursuant to the Commissioning Contract will be structured as follows: Year 1 Year 2 Year 3 1st year extension 2nd year extension Block Price 95% 90% 85% 8085% 8085% 80% Potential retention or reduction in the contract Contract price for achievement of key performance indicators or as a result of & 5% 10% 15% 2015% 20% 2015% 1.4. All Commissioners will be invoiced direct by the Provider. The Commissioners will be advised by the Lead Commissioner of the phasing arrangements, the payment date within the month/quarter and if payment needs to be withheld in accordance with KPIs or other Commissioning Contract provisions. Commissioners will ensure that payments are made in accordance with such advice from the Lead Commissioner. 1.5. The NHS tariff inflator/deflator is applicable to the Commissioning Contract and shall be applied to years 2 and subsequent years of the contract value subject to annual price reviews (there will be no guarantee of the price increasing should RPI outweigh the deflatorreviews.) 1.6. All commissioners agree that the provider will need to achieve all standards set out in the KPI’s in order to receive that performance related pay. 1.7. Any contract value deflations shall be applied pro-rata to the agreed Financial Contribution subject to any overall reduction not being applied to the ECC contribution until all other Commissioners have achieved a 10% reduction from the baselines set out in paragraph 2 above.

CONTRACT COSTS. 1.1. The Commissioning Contract shall be managed as a block price contract in accordance with the following opening values. While this won’t affect the overall total there may be a future rebasing that is to be agreed between Mid Essex, North East Essex and West Essex CCGs. 1.2. The final opening contract value will be subject to the procurement process but will be contained within the opening values set out below. Any reduction to the opening contract value shall be applied pro-rata to the agreed Financial Contribution subject to any overall reduction not being applied to the ECC contribution until all other Commissioners have achieved a 10% reduction from the baselines set out in paragraph 1.3 below. 1.3. Subject to 1.1 above, Financial Contributions will not be rebased during the life of the Commissioning Contract but a robust data set will be developed to inform future cost shares. Per Annum £000 % Essex CC 1,821 13.2% Southend UA 210 1.5% Thurrock UA 202 1.5% B&B CCG 1,723 12.5% CP&R CCG 914 6.6% Southend CCG 954 6.9% Thurrock CCG 1,045 7.6% Mid Essex CCG 1,884 13.7% North East Essex CCG 2,353 17.1% West Essex CCG 2,647 19.2% 1.31.4. The contract price payable to the Provider pursuant to the Commissioning Contract will be structured as follows: Year 1 Year 2 Year 3 1st year extension 2nd year extension Block Price 95% 90% 85% 8085% 8085% 80% Potential retention or reduction in the contract Contract price for achievement of key performance indicators or as a result of & CQUIN/Quality 5% 10% 15% 2015% 20% 2015% 1.41.5. All Commissioners will be invoiced direct by the Provider. The Commissioners will be advised by the Lead Commissioner of the phasing arrangements, the payment date within the month/quarter and if payment needs to be withheld in accordance with KPIs or other Commissioning Contract provisions. Commissioners will ensure that payments are made in accordance with such advice from the Lead Commissioner. 1.51.6. The NHS tariff inflator/deflator is applicable to the Commissioning Contract and shall be applied to years 2 and subsequent years of the contract value subject to annual price reviews (there reviews. 1.7. All commissioners agree that the Provider will be no guarantee of need to achieve the price increasing should RPI outweigh standard, across all localities, set out in the deflatorKPI’s in order to receive that standard’s performance related pay.) 1.61.8. Any contract value deflations shall be applied pro-rata to the agreed Financial Contribution subject to any overall reduction not being applied to the ECC contribution until all other Commissioners have achieved a 10% reduction from the baselines set out in paragraph 2 1.3 above.