In a cost-reimbursement contract with a '3-Element' compensation model, where specific formulae are prescribed for calculating Element 1 staff rates using multipliers applied to raw rates, those formulae define 'actual cost' for all purposes under the agreement, not merely for progress payments. A general overview clause providing for reimbursement at 'actual cost' is subject to the specific rate-setting provisions elsewhere in the commercial framework. Contractual audit access provisions should be construed broadly by analogy with statutory audit access rights, but an auditor is not entitled to go behind agreed contractual multipliers.
The full text is available to signed-in members, including the 1 later case that cites this judgment.