The following table includes the current rates to be applied in the Capital Employed (Section 5.2.1) factors of the Profit Principles for negotiated pricing.
The rates to be used in the profit determination for contracts starting July 2023 and onwards will be the latest figure published in the table below. The calculated rates will be posted one week after the end of the month.
|Profit Factor||Pricing Guide Section Reference||Type of Rate||Calculated Monthly Rate
|Working Capital Tier 1||Section 126.96.36.199||Monthly 1-Year GIC Rate (3-year Rolling Average)||1.70%||Bank of Canada (V80691339)|
|Working Capital Tier 2||Section 188.8.131.52||Monthly Bank Prime Rate (3-year Rolling Average)||4.24%||Bank of Canada (V80691311)|
|Fixed Capital Tier 1||Section 184.108.40.206||Fixed Percentage||1.00%||PSPC|
|Fixed Capital Tier 2||Section 220.127.116.11||Low Capital Intensity Rate||5.00%||PSPC|
|Fixed Capital Tier 2 & Tier 3||Section 18.104.22.168||Monthly Canada Long-Term BBB
Corporate Bond Rate (3-year Rolling
In the case that profit determination is related to previous periods, applicable rates during the same periods must be used. For example, if the negotiation is for the period of January 2021, the applicable rates for January 2021 must be used.
Should you have any questions regarding the rates, please contact Price Advisory Group using the following generic inbox: