This webpage examines the grounds for making a notice of cessation. Chapter 7 of the SSRO’s guidance on qualifying sub-contracts includes guidance on the notice of cessation process.
There are conditions that must be met for a contract to be QSC. Among these are the condition that a contract may only be a QSC if the performance of at least 50 per cent by value of the obligations under the contract is required to enable the performance of:
- the QDC or QSC to which the contract is a sub-contract, or
- the QDC or QSC to which the contract is a sub-contract AND any other QDCs or QSCs, or prospective QDCs or QSCs to which the contracting authority (or any person associated with that person) is or might become a party.
If a sub-contractor under a QSC believes that the contract no longer meets that test it can give notice to the SSRO that the contract should no longer be subject to the regulatory framework and should cease to be treated as a QSC. This is the only basis on which a notice of cessation can be given.
This notice of cessation must be made in writing and be sent to the SSRO no later than the QSC’s contract completion date.
At the same time the notice is sent to the SSRO, the sub-contractor must send copies to the MOD and the contracting authority under the QSC.
The notice must explain why the sub-contractor considers the contract no longer meets the condition to be a QSC.
After receiving a cessation notice, the Secretary of State and the contracting authority have 10 working days to make any written representations to the SSRO for consideration.
If the conditions for the referral are met, the SSRO will consider the notice of cessation and any written representations and decide whether to agree or overrule the notice. We aim to do this within 40 working days of receipt.