This newsletter highlights the SSRO’s recent work to support stakeholders across the MOD and industry.
Transcript of video
Hello everyone – I’m John Russell, Chief Executive of the Single Source Regulations Office, and I have a brief update to share on how we’re supporting stakeholders across the Ministry of Defence and industry.
In March, the Secretary of State for Defence accepted our recommendation of the baseline profit rate, which is used during the current financial year for qualifying single-source contracts. This rate provides a consistent starting point for setting contract profit, giving confidence that prices will be fair and reasonable for contractors, as well as representing value for money for the taxpayer. The baseline profit rate also underpins a stable environment for investment and planning – fostering confidence, fairness and stability for everyone involved.
We’ve recently published new guidance on contract pricing amendments – which will assist those who are involved in some of the nation’s most vital defence contracts. Developed with invaluable input from MOD and industry partners, this guidance ensures clarity and consistency in making any pricing changes during a contract[i]. Both sides can now draw on our guidance – making contract management easier for everyone. Alongside the guidance, we have provided an explanatory video on how to apply pricing amendments within the single source regulatory framework.
Our Non-Referral Advice Service continues to provide practical, valued support to stakeholders. We’ve handled a wide range of queries on the Regulations and guidance, helping people navigate issues with greater clarity and confidence. The service is proving a helpful way to support understanding and early engagement.
We’re also working with the MOD and industry on the review of the Single Source Contract Regulations. We will continue to engage and support stakeholders during the implementation of the changes to the framework, which were announced recently in Parliament.
Another milestone ahead is the publication of our refreshed Corporate Plan, which outlines what we will deliver in the year ahead, including how we’ll continue to improve guidance, services, and engagement to support you.
Summer will see publication of our Annual Statistics and Compliance Bulletin, which will bring together key data and insights on how the regulatory framework is operating in practice. This will be of real interest to stakeholders because it will provide a clearer picture of trends in single-source contracting; reporting; and compliance.
We remain dedicated to direct support and open dialogue. In early February we held a well-received teach-in on our qualifying sub-contracts guidance. Looking ahead, on 10 June, we’re hosting another teach-in, this time focused on the newly issued contract amendments guidance – and we encourage you to join: details here.
Our Operational Working Group meetings also remain an important part of this engagement, giving stakeholders a practical forum to raise issues, share experience and help shape the development of our guidance and support. These meetings are valuable because they help ensure our work is informed by real operational experience and that stakeholders have a direct route to feed in their views.
Our programme of engagement is built on – and indeed depends on – great relationships with stakeholders. One aspect of this is with trade and industry bodies: we shared updates and gathered feedback at a Team Defence Information webinar at the tail end of April, and we have an upcoming session with Make UK Defence in early July. We’re also looking forward to meeting stakeholders at Farnborough International Airshow at the tail end of July. These sorts of engagements provide fantastic opportunities to exchange information and learn from people who are using the regulatory framework.
Finally, we are always here to support and engage with you. We truly value your questions, ideas and involvement – whether through our events; our helpdesk; or direct contact. Please keep engaging with us.
By working together, we can ensure the regulatory framework continues to deliver for everyone – supporting a thriving defence sector and delivering value for the nation.
Thank you, and I look forward to our continued collaboration in the months ahead.
[i] We have also introduced a quick start guide as part of this guidance – the first time the SSRO has used this format. It helps stakeholders to navigate the guidance through flowcharts, which signpost users to the most relevant sections of the full guidance given their circumstances.
Our helpdesk provides ongoing support to contractors and the MOD. It operates from 9am to 5pm Monday to Friday, excluding UK bank holidays. It can be contacted on 020 3771 4785 or by email at helpdesk@ssro.gov.uk.