The Government Profit Formula and its Associated Arrangements (GPFAA) - UK

On 26th February 1968, the Chief Secretary, HM Treasury, announced to Parliament that the Government had reached agreement with industry on new arrangements for placing and pricing non-competitive Government contracts.

The underlying objective of these arrangements is that fair and reasonable prices shall be agreed. The detailed arrangements have been modified from time to time, most recently by this agreement between the Ministry of Defence (‘MOD’) acting on behalf of the Government and the CBI acting on behalf of industry. This Profit Formula Agreement, which supersedes the 1968 Memorandum of Agreement, the 1968 Profit Formula Agreement and all previous amendments thereto, contains three sections:

Section 1 (Principles),

Section 2 (Arrangements agreed following the 2011 Review) and

Section 3 (Review Board guidance)

Please see File:UK - Government Profit Formula.pdf