Customers from the public sector such as the governments of the German States (the “Länder” governments) and local authorities increasingly engage the services of private companies. External service costs incurred within such projects are included in public fees and charges.

Such costs are in most cases calculated in accordance with the pricing regulations for public sector contracts (Verordnung PR Nr. 30/53 über die Preise bei öffentlichen Aufträgen vom 21. November 1953, Leitsätze für die Preisermittlung auf Grund von Selbstkosten – LSP; Regulation PR No. 30/53 on prices for public sector contracts as of November 21, 1953, cost pricing principles - LSP). LSP regulations apply especially in the event that an order has been placed without any competitive procedure (e.g. invitation to tender).

Our consulting team of economic and legal experts prepares calculations and expert opinions in accordance with LSP regulations such as:

·         determination of the underlying price type (market price or fixed cost price, recommended cost price, cost reimbursement price)

·         preparation and assessment of the calculation and its basics

·         assessment of individual problems of LSP calculations (measurement of imputed depreciation and interest, recognition of imputed risk, profit margin determination, etc.)

·         cost item recognition evaluation for LSP calculation purposes