SSRO continues with its ‘free to access’ training on aspects of the UK regulatory framework for single source defence contracts
The SSRO will hold its second teach-in session of 2026 on 10 June (online, via Teams), focusing on new guidance that helps contractors and the Ministry of Defence (MOD) amend the prices of qualifying contracts in a clear, transparent and efficient way. The teach-in will help attendees gain a better understanding of the guidance on […]
Compliance and review methodology consultation
Detail of outcome The SSRO is today publishing the outcome of its consultation on changes to the compliance and review methodology. The proposals included: aligning our key performance indicators to the SSRO’s Corporate Plan 2025-2026; clarifying our report review priorities depending on resource availability; and providing more flexibility for when the SSRO may raise issues […]
Contract pricing amendments guidance consultation
Detail of outcome The SSRO has published the outcome of its consultation on new guidance for contractors and the MOD on contract pricing amendments. The consultation response sets out the updates made to the new guidance following stakeholder feedback. We thank those who responded to the consultation. Where respondents gave permission for their responses to […]
Contract pricing amendments guidance (Version 1)
Contract amendments, such as adding or removing goods, works or services, can significantly affect the price of qualifying contracts. The SSRO has issued updated guidance to assist both contractors and the Ministry of Defence (MOD) with redetermining the price of their qualifying contracts when making amendments. Disputes and delays in agreeing contract pricing amendments can […]
Compliance and Review Methodology 2026
The methodology has been updated to: align our key performance indicators to the SSRO’s Corporate Plan 2025-2026; clarify our report review priorities depending on resource availability; and provide more flexibility for when the SSRO may raise issues on reports.
SSRO publishes new guidance to support amendments to qualifying defence contracts
Most UK defence contracts awarded without competition fall under the Single Source Regulatory Framework, which is designed to ensure fair pricing and value for money. Price changes may arise where the scope of a contract changes, new work is added, or the costs or assumptions used to set the original price need to be updated. […]
Contract Award Notice: SSRO-C-155 SSRO IT Managed Service (ITMS) and DefCARS
Update: A subsequent publication of the Contract Award Notice on the central digital platform (Find a Tender service) has resulted in a later standstill end date. The SSRO will apply this later date. The standstill period will therefore end at midnight on Friday 8 May 2026 and the SSRO will not enter into the contract […]
Publication date and forthcoming changes to the 2025/26 annual statistics bulletin
Announcement of publication date for 2025/26 annual statistics bulletin The SSRO would like to make stakeholders aware that the forthcoming Annual Qualifying Defence Contract Statistics: 2025/26 bulletin will be published on 28 July 2026. There are a number of changes the SSRO would like to ensure readers are aware of, detailed below. Forthcoming changes to […]
2026 contract profit rate assessment
The Secretary of State for Defence has confirmed the rates that will apply for 2026/27, in line with the SSRO’s assessment. Reflecting wider market trends, the baseline profit rate has increased to 9.10 percent for 2026/27, up from last year’s rate of 8.56 percent. The capital servicing rates have risen by an average of 0.65 […]
Guidance on the alternative pricing of contracts (version 1.3)
The single source regulatory framework offers a range of flexible approaches to pricing contracts. Understanding the options available and how to apply them allows the Ministry of Defence (MOD) and industry to price contracts with speed and simplicity, ensuring that value for money is obtained on qualifying contracts and that contractors are paid a fair […]
Guidance on the application of the final price adjustment (FPA) (version 1.1)
Where cost over- or underruns occur on qualifying defence contracts this can lead to excess profit or losses arising for the contractor. The FPA allows these profits and losses to be shared between the contracting parties rather than falling entirely to the contractor or the Ministry of Defence (MOD). The SSRO has published new guidance […]
Allowable costs guidance (version 7.3)
For a cost to be allowable in the price of a single source contract, it must meet the requirements of being appropriate, attributable to the contract and reasonable in the circumstances. It is important that parties understand these requirements and how to judge whether they have been met. The guidance helps to ensure that contractors […]
Guidance on the baseline profit rate and its adjustment (version 8.3)
The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent four-step process which helps to ensure that value for money is obtained for taxpayers on qualifying contracts and that contractors are paid a fair and reasonable price under those contracts. This guidance explains how to apply those […]
Guidance on the application of the final price adjustment (FPA) Version 1
Where cost over- or underruns occur on qualifying defence contracts this can lead to excess profit or losses arising for the contractor. The FPA allows these profits and losses to be shared between the contracting parties rather than falling entirely to the contractor or the MOD. The Single Source Regulations Office has published new guidance […]
Higher profit rate set for critical defence contracts as SSRO publishes analysis
The Secretary of State for Defence has today (13 March 2026) confirmed the baseline profit rate that will apply for 2026/27, which will be used as the first-step in the process for agreeing the contract profit rate on critical defence contracts awarded by the Ministry of Defence (MOD) in the absence of a competitive process. […]
Information technology factsheet 2026
Under the Defence Reform Act 2014, the SSRO must provide the Secretary of State with its assessment of the appropriate rates used to determine the contract profit rate for pricing qualifying defence contracts and qualifying sub-contracts. Part of the methodology is the categorisation of comparator companies into four activity types. The results of these groups […]
Construction factsheet 2026
Under the Defence Reform Act 2014, the SSRO must provide the Secretary of State with its assessment of the appropriate rates used to determine the contract profit rate for pricing qualifying defence contracts and qualifying sub-contracts. Part of the methodology is the categorisation of comparator companies into four activity types. The results of these groups […]
Ancillary services factsheet 2026
Under the Defence Reform Act 2014, the SSRO must provide the Secretary of State with its assessment of the appropriate rates used to determine the contract profit rate for pricing qualifying defence contracts and qualifying sub-contracts. Part of the methodology is the categorisation of comparator companies into four activity types. The results of these groups […]
Recommendation factsheet 2026
Under the Defence Reform Act 2014, the SSRO must provide the Secretary of State with its assessment of the appropriate rates used to determine the contract profit rate for pricing qualifying defence contracts and qualifying sub-contracts. For further information on the methodology used to calculate these rates please see the Single Source baseline profit rate […]
Baseline profit rate methodology March 2026
Under the Defence Reform Act 2014 (the Act), the SSRO is required annually to review the figures used to determine the contract profit rate for pricing qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs). Section 19(2) of the Act requires that, for each financial year, the SSRO must provide the Secretary of State with its […]
SSRO training on qualifying sub-contract (QSC) guidance: publication of the presentation
The SSRO’s approach to overseeing the regulatory framework for single source defence contracts is grounded in the principle of being a responsive and supportive regulator. By providing clear and accessible guidance on the regulatory framework, the SSRO helps the parties to non-competitive contracts to understand what is expected of them and safeguards value for money […]
SSRO opens training on aspects of the UK regulatory framework for single source defence contracts
The SSRO will hold its first teach-in session of 2026 on 4 February, focusing on how the regulatory framework for non-competed defence contracts applies to qualifying sub-contracts (QSCs). The training will run from 2.30pm to 4.00pm (GMT), via Microsoft Teams. The SSRO’s teach-in programme is informed by feedback from the Ministry of Defence (MOD) and […]
Applying SSRO guidance to costs affected by COVID-19
The COVID-19 pandemic may affect the costs contractors incur under qualifying contracts. Costs may change due to factors such as: The note does not amend or alter the SSRO’s published guidance but aims to promote consistency in the application of the regulatory framework established by Part 2 of the Defence Reform Act 2014 (the Act) […]
2024 contract profit rate assessment
The baseline profit rate and capital servicing rates continue to be the most significant determinants of contract profit rates and help ensure pace and agility in the way that single source contracts can be priced. The Secretary of State for Defence has now announced his determination of the rates for this year and we welcome […]
SSRO’s approach to responsible Artificial Intelligence (AI) use
The Single Source Regulations Office (SSRO) is committed to using AI responsibly to support our work. We recognise the opportunities AI offers to improve efficiency and quality, while ensuring safety, ethics, and human oversight remain paramount. This statement explains how we use AI, the safeguards we have in place, and our commitment to transparency. Why […]
Digital strategy
The Single Source Regulations Office (SSRO) has published its new Digital Strategy, which brings together our previous Data Strategy and Defence Contract Analysis and Reporting System (DefCARS) Future Technology Strategy. DefCARS is the SSRO’s online, web-enabled system which facilitates submission of statutory reports to the SSRO and MOD. The new Digital Strategy has a focus […]
SSRO stakeholder newsletter – November 2025
Introduction from John Russell, Chief Executive, SSRO SSRO publications It remains the SSRO’s duty in carrying out our functions to aim to secure value for money for the taxpayer and fair and reasonable prices for suppliers on single source defence contracts. We pursue these twin aims by providing independent advice, guidance, and robust analysis. The […]
Stakeholder Engagement Strategy
We have published a refreshed Stakeholder Engagement Strategy (the ‘Strategy’) to help shape and coordinate the SSRO’s different engagement activities, ensuring they contribute to the delivery of its statutory functions and strategic aims. Successful engagement is fundamental to the SSRO’s evidence-based approach to its work, and we continuously seek to improve how we undertake our […]
SSRO seeks views on new guidance to support amending defence contracts successfully
The SSRO is seeking feedback on its new guidance for both contractors and the Ministry of Defence to support flexible, transparent and efficient amendment of the price of single source contracts. Most UK defence contracts awarded without competition fall under the Single Source Regulatory Framework, which aims to ensure fair pricing and value for money […]
Outcome of the consultation on Baseline Profit Rate Methodology
The BPR is the starting point for the agreement of contract profit rates and is 8.56 per cent for 2025/26. The BPR has been applied to contracts worth over £124 billion since April 2015. The BPR is only the first in a series of steps used by the contracting parties to derive the contract profit […]
Baseline Profit Rate assessment: Proposed methodology updates
Detail of outcome The SSRO is required each year to provide the Secretary of State with its assessment of the appropriate starting rate of profit on Ministry of Defence contracts placed in the absence of competition, known as the baseline profit rate (BPR). We have published the outcome of our recent consultation on developments to […]
Register of Interests
The SSRO maintains a register of the private interests held by members of its board and panel members. The purpose of the register is to give board members the mechanism to publicly declare any private interests which may conflict, or may be perceived to conflict, with their public duties. This is a record of the […]
Same challenges, different solutions – improving understanding of international approaches to non-competitive contracting
The SSRO has published two papers bringing together information on international approaches to single source contracting – where goods and services are purchased from a supplier in the absence of competition. To coincide with the annual meeting of the International Industrial Cost Analysis and Verification Community of Practice (ICOP), being hosted by the SSRO in […]
Announcement on the discontinuation of quarterly statistical bulletins
In July, the SSRO announced a proposal to discontinue the quarterly statistics bulletins and sought feedback from stakeholders on these proposals. The quarterly bulletins were introduced to assist early monitoring of the regime and provide regular updates on a smaller number of contracts. As the regime is now more mature, we believe the utility of […]
Annual qualifying defence contract statistics 2024-25
The annual statistics bulletin is part of a regular published series of statistical reports, containing analysis of key QDC/QSC information. This annual publication includes analysis of all contracts that became a QDC/QSC between 1 April 2024 and 31 March 2025, and data for Quarter 4 2024/25 within the quarterly series of bulletins. Data is also […]
A survey of international arrangements for single source contracting: Same challenges, different solutions
The SSRO has published two papers bringing together information on international approaches to single source contracting – where goods and services are purchased from a supplier in the absence of competition. To coincide with the annual meeting of the International Industrial Cost Analysis and Verification Community of Practice (ICOP), being hosted by the SSRO in […]
SSRO consultation on compliance and review methodology
Detail of outcome This compliance and review methodology (the methodology) has been subject to public consultation and we would like to thank respondents for sharing their views. All feedback received has been carefully considered. The consultation response document summarises the key issues raised and provides the SSRO’s response to them. We have published the individual feedback forms […]
Quarterly qualifying defence contract statistics: Q3 2024/25
This bulletin is part of a regular published series of statistical reports, containing analysis of key QDC/QSC information, covering all contracts that became a QDC/QSC between 1 April 2015 and 31 December 2024. The SSRO was notified of 736 contracts that became QDCs/QSCs between 1 April 2015 and 31 December 2024. Contractors have one month […]
Quarterly qualifying defence contract statistics bulletin: Q1 2023/24
This bulletin is part of a regular published series of statistical reports, containing analysis of key QDC/QSC information, covering all contracts that became a QDC/QSC between 1 April 2015 and 30 June 2023. The SSRO was notified of 590 contracts that became QDCs/QSCs between 1 April 2015 and 30 June 2023. Contractors have one month […]
Corporate plans
2023 contract profit rate recommendation
Details Under the Defence Reform Act 2014, the Single Source Regulations Office (SSRO) is required to provide the Secretary of State each year with an assessment of the appropriate baseline profit rate, SSRO funding adjustment and capital servicing rates used to determine the contract profit rate for qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs). […]
Stakeholder engagement strategy
This refreshed engagement strategy complements the SSRO’s Corporate Plan 2023–2026 and develops our stakeholder engagement to ensure that: The stakeholder engagement strategy: The strategy also highlights the 2022 stakeholder survey as a key source of evidence and incorporates some of the survey’s findings. 1. Introduction The Single Source Regulations Office (SSRO) is an executive non-departmental public body, sponsored […]
SSRO procedures for responding to freedom of information requests
Under the Freedom of Information Act 2000 (FOI Act), the SSRO is obliged to publish certain information about its activities and external parties are entitled to request information from the SSRO (FOI requests). This document provides guidance for the SSRO’s stakeholders on the procedures that the SSRO will follow for dealing with FOI requests. Application […]
Allowable costs guidance (version 7)
For a cost to be allowable in the price of a single source contract, it must meet the requirements of being an allowable cost. This means it must be appropriate, attributable to the contract and reasonable in the circumstances. It is important that parties understand these requirements and how to judge whether they have been […]
Allowable costs guidance (version 7.2)
For a cost to be allowable in the price of a single source contract, it must meet the requirements of being appropriate, attributable to the contract and reasonable in the circumstances. It is important that parties understand these requirements and how to judge whether they have been met and ensures that that contractors are paid […]
Helping the MOD and the defence industry navigate the single source regulatory framework for key supply-chain contracts
The SSRO has published new guidance that will help all stakeholders identify and apply the regulatory framework for single source defence contracts to qualifying sub-contracts. Following consultation with stakeholders, the SSRO has published new guidance on how the regulatory framework for single source defence contracts applies to qualifying sub-contracts (QSCs). QSCs account for around one in six […]
Proposed updates to how the starting point for profit rates for vital single source defence contracts are calculated
We are consulting on updates to the way that profit rates for defence-related single source contracts are calculated. Each year, the SSRO undertakes a robust process to assess the appropriate baseline profit rate (BPR) for single source defence contracts using the published BPR methodology. The BPR is the first step of the four-step process in […]
Guidance on the baseline profit rate and its adjustment (version 8)
Details The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent process that ensures that value for money and fair prices are obtained. New legislation and regulations have simplified the steps in this process from six to four. The four step process relates to contracts that apply […]
2025 contract profit rate assessment
Recommendation factsheet 2025 Ancillary Services factsheet 2025 Construction factsheet 2025 Information Technology Services factsheet 2025 Key questions and answers regarding the SSRO’s single source baseline profit rate and capital servicing rates methodology The Secretary of State for Defence has announced his determination of the rates to be used for 2025/26, and we are delighted that […]
Baseline profit rate methodology March 2025
Under the Defence Reform Act 2014 (the Act), the SSRO is required annually to review the figures used to determine the contract profit rate for pricing qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs). Section 19(2) of the Act requires that, for each financial year, the SSRO must provide the Secretary of State with its […]
Guidance on how the single source regulatory framework applies to qualifying sub-contracts
The regulatory framework for single source defence contracts applies to qualifying sub-contracts (QSCs) and to sub-contractors as it applies to qualifying defence contracts (QDCs) and to primary contractors subject to specified modifications. The regulatory framework defines when a contract is a QSC and confers a number of related obligations, rights, and powers, where specified, on […]
SSRO Corporate Plan 2024-2027
Details Our Corporate Plan for 2024 to 2027 sets out our strategic direction for the next three years, and identifies the priorities and projects we will pursue to deliver our statutory functions. During the period of the Plan, the SSRO will support the government in delivering the optimal operation of the single source regulatory […]
Corporate Plan 2025 – 2026
This Corporate Plan sets out how we will continue to engage with the government and defence industry in line with the recommendations of the Strategic Defence Review (SDR) and the upcoming Defence Industrial Strategy (DIS) and through the future review of the single source regulatory framework. In so doing, the SSRO will be mindful of […]
Starting point for agreeing profit rates on crucial defence contracts announced and contract profit rate analysis published
The Secretary of State for Defence has today (14 March 2025) announced his determination of the baseline profit rate and capital servicing rates, in line with the SSRO’s recommendation. These rates are used in the process for agreeing the contract profit rate on defence contracts awarded by the Ministry of Defence (MOD) in the absence […]
Compliance bulletin 2024/25
Introduction Defence suppliers are required to submit information about single source defence contracts[1] to the SSRO and the MOD, using the SSRO’s Defence Contract Analysis and Reporting System (DefCARS). These submissions are a fundamental component of the regulatory framework, containing a range of data regarding contractual requirements, payments, estimated and actual costs, profit and factors […]
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Full determination: SSRO determination on the extent to which a contractor’s particular unanticipated costs are allowable costs under a firm-priced qualifying defence contract
Determination made: 29 September 2023 The Single Source Regulations Office (SSRO) is an executive non-departmental public body, sponsored by the Ministry of Defence. It plays a key role in supporting the regulatory framework for single source defence contracts established by Part 2 of the Defence Reform Act 2014 and the Single Source Contract Regulations 2014. […]
SSRO determination on the extent to which a contractor’s particular unanticipated costs are allowable costs under a firm-priced qualifying defence contract
In September 2023, the SSRO made a determination on a matter referred to it by a defence contractor. This determination was made using a power given to the SSRO by the Defence Reform Act 2014. The referral concerned the extent to which specific staff and storage costs incurred by the contractor in relation to the […]
Summary: SSRO determination on the extent to which a contractor’s particular unanticipated costs are allowable costs under a firm-priced qualifying defence contract
Determination made: 29 September 2023 1. Introduction The regulatory framework for single source defence contracts specifies how contracts that meet the requirements for being qualifying defence contracts (‘QDCs’) must be priced. The price of a QDC is comprised of allowable costs (determined in accordance with one of six regulated pricing methods) and profit (a percentage mark-up on […]
Review of Legislation recommendations June 2021
The single source regulatory framework was introduced by the Defence Reform Act 2014 and the Single Source Contract Regulations 2014. It aims to strike a balance between achieving value for money on government expenditure and fair and reasonable prices for contractors, by subjecting qualifying contracts to price control and by requiring suppliers to provide an […]
Compliance and review methodology 2024
The updated methodology continues to promote timely reports and good quality data, while recognising the role of compliance reviews in informing the SSRO’s understanding of how the regulatory framework is being applied. The previous methodology was published in 2023 and the update takes into account changes made to the Single Source Contract Regulations on 1 […]
Guidance on the alternative pricing of contracts (version 1.1)
The single source regulatory framework offers a range of flexible approaches to pricing contracts. Understanding the options available and how to apply them allows the MOD and industry to price contracts with speed and simplicity, ensuring that value for money is obtained on qualifying contracts and that contractors are paid a fair and reasonable price […]
Annual compliance bulletin 2025
The compliance bulletin presents key compliance information relating to reports expected for submission between 1 May 2024 and 30 April 2025. Historical data in this bulletin goes back to the period commencing 1 May 2018, when compliance related data first became available in DefCARS. Timeliness and quality data is a snapshot as of 2 June […]
Guidance on the alternative pricing of contracts (version 1.2)
The single source regulatory framework offers a range of flexible approaches to pricing contracts. Understanding the options available and how to apply them allows the MOD and industry to price contracts with speed and simplicity, ensuring that value for money is obtained on qualifying contracts and that contractors are paid a fair and reasonable price […]
Guidance on the alternative pricing of contracts (version 1)
The single source regulatory framework will now offer a range of flexible approaches to pricing contracts. Understanding the options available and how to apply them allows the MOD and industry to price contracts with speed and simplicity, ensuring that value for money is obtained on qualifying contracts and that contractors are paid a fair and […]
SSRO code of conduct
The ‘Code of conduct for SSRO board members’ sets out the standards expected from those who serve on the SSRO Board. It incorporates the ‘7 principles of public life’, first published by the Committee on Standards in Public Life. It also includes sections on: Individual members should at all times observe the highest personal and […]
SSRO opinion on Allowable Costs arising from work undertaken at risk
The SSRO was jointly referred a request by the MOD and a contractor for an opinion in respect of a proposed Qualifying Defence Contract (QDC). The referral sought the SSRO’s opinion on whether work undertaken at risk, ahead of the agreement of the contract through negotiation, may in principle represent Allowable Costs under the contract […]
SSRO opinion on qualifying contracts related to a pre-regime contract
In accordance with the procedure published in the SSRO’s referrals guidance, the SSRO has published an anonymised summary of its opinion in relation to proposed qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs) relating to a pre-regime contract. The SSRO was jointly referred the request by the MOD and a contractor. The summary sets out […]
SSRO opinion on costs agreed prior to conversion to a qualifying defence contract
In accordance with the procedure published in the SSRO’s referrals guidance, the SSRO has published an anonymised summary of its opinion in relation to a proposed qualifying defence contract (QDC). The referral concerned the extent to which costs agreed prior to conversion of a contract to a QDC may be treated as Allowable under the […]
Quarterly qualifying defence contract statistics: Q2 2024/25
This bulletin is part of a regular published series of statistical reports, containing analysis of key QDC/QSC information, covering all contracts that became a QDC/QSC between 1 April 2015 and 30 September 2024. The SSRO was notified of 716 contracts that became QDCs/QSCs between 1 April 2015 and 30 September 2024. Contractors have one month […]
SSRO guidance on determining amount of penalty
Section 33(3) and (4) of the Defence Reform Act provides for the SSRO to issue guidance on determining the amount of a penalty, stating that: The overarching principle of this guidance is to ensure that any penalties issued are fair and proportionate, while acting to deter non-compliance. It will be a legal requirement for contractors and the MOD to […]
Annual compliance bulletin 2024
The regulatory framework for single source defence contracts requires contractors to submit a range of statutory reports to the Ministry of Defence (MOD) and the SSRO. The SSRO examines these report submissions to monitor compliance with reporting requirements and inform its understanding of how the regulatory framework is operating. The report submissions contain a range […]
SSRO referral investigation closed after parties reach agreement
The SSRO has agreed to discontinue its investigation of a referral for a determination on the amount of a final price adjustment after the parties to the referred contract reached a negotiated settlement. The parties had previously been unable to agree what, if any, final price adjustment was due under the contract. After beginning an […]
Single Source Regulations Office Board – MOD Representative Protocol
The MOD and the SSRO agreed the 2020 Tailored Review of the SSRO recommendation that: “Subject to further consideration to ensure that it does not create a conflict with the SSRO’s ability to fulfil its statutory functions, that the Secretary of State appoints a sponsor representative from a non-procurement function of the MOD (or from […]
Quarterly qualifying defence contract statistics: Q2 2023/24
This bulletin is part of a regular published series of statistical reports, containing analysis of key QDC/QSC information, covering all contracts that became a QDC/QSC between 1 April 2015 and 30 September 2023. The SSRO was notified of 608 contracts that became QDCs/QSCs between 1 April 2015 and 30 September 2023. Contractors have one month […]
Quarterly qualifying defence contract statistics: Q3 2023/24
This bulletin is part of a regular published series of statistical reports, containing analysis of key QDC/QSC information, covering all contracts that became a QDC/QSC between 1 April 2015 and 31 December 2023. The SSRO was notified of 637 contracts that became QDCs/QSCs between 1 April 2015 and 31 December 2023. Contractors have one month […]
Annual qualifying defence contract statistics: 2023/24
The SSRO has released its latest quarterly publication on key statistics relating to qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs) The annual statistics bulletin is part of a regular published series of statistical reports, containing analysis of key QDC/QSC information. This annual publication includes analysis of all contracts that became a QDC/QSC between 1 […]
Quarterly qualifying defence contract statistics: Q1 2024/25
This bulletin is part of a regular published series of statistical reports, containing analysis of key QDC/QSC information, covering all contracts that became a QDC/QSC between 1 April 2015 and 30 June 2024. The SSRO was notified of 689 contracts that became QDCs/QSCs between 1 April 2015 and 30 June 2024. Contractors have one month […]
New guidance on the final price adjustment
Detail of outcome The SSRO is today publishing the outcome of its consultation on new guidance for contractors and the MOD on the FPA. The consultation response sets out the updates we have made to the new guidance following stakeholder feedback. We would like to thank all those who responded to the consultation for sharing […]
New and updated reporting guidance to help contractors submit statutory reports
Detail of outcome The SSRO has published its response to its consultation on the new and updated reporting guidance to help contractors submit statutory reports following the legislative changes made to the Single Source Contract Regulations on 1 April 2024. The consultation also included minor changes to the compliance methodology. We issued the draft guidance and […]
Single Source Cost Standards (SSCS): statutory guidance on allowable costs January 2015
Its application is mandatory in determining whether costs are Allowable under single source contracts. Non-compliance with the guidance is in breach of the Defence Reform Act and any breach allows for penalties and fines to be applied. The SSCS only deal with the treatment of costs in relation to single source contracts. The aim of […]
Single Source Cost Standards: Statutory Guidance on Allowable Costs July 2016
Its application is mandatory in determining whether costs are Allowable under single source contracts. Non-compliance with the guidance is in breach of the Defence Reform Act and any breach allows for penalties and fines to be applied. The SSCS only deal with the treatment of costs in relation to single source contracts. The aim of […]
Allowable Costs guidance April 2018
The SSRO started to review its existing statutory guidance in April 2017 and undertook a programme of engagement with stakeholders, consulting on proposed guidance changes in October and November 2017. We received 12 responses to our consultation, which we have considered and reflected in our final Allowable Costs guidance. The consultation response document explains the changes we […]
Allowable Costs guidance (version 4)
The Defence Reform Act 2014 (the Act) requires that qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs) are priced on the basis of Allowable Costs. Section 20(1) of the Act stipulates that the SSRO must issue guidance about determining whether costs are Allowable Costs under QDCs and QSCs, and the Ministry of Defence and its […]
Allowable Costs guidance (version 5)
Details This version of the guidance (version 5) was published on 16 March 2020 and applies to QDCs and QSCs agreed on or after 1 April 2020. It incorporates the changes that were published in January 2020 following a public consultation. Queries relating to the guidance should be addressed to helpdesk@ssro.gov.uk. The SSRO helpdesk is unable to […]
Allowable Costs guidance (version 5.1)
The Defence Reform Act 2014 (the Act) requires that qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs) are priced on the basis of Allowable Costs. Section 20(1) of the Act stipulates that the SSRO must issue guidance about determining whether costs are Allowable Costs under QDCs and QSCs, and the Ministry of Defence and its […]
Allowable Costs guidance (version 6)
The Defence Reform Act 2014 (the Act) requires that qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs) are priced on the basis of Allowable Costs. Section 20(1) of the Act stipulates that the SSRO must issue guidance about determining whether costs are Allowable Costs under QDCs and QSCs, and the Ministry of Defence and its […]
Allowable costs guidance (version 7.1)
For a cost to be allowable in the price of a single source contract, it must meet the requirements of being appropriate, attributable to the contract and reasonable in the circumstances. It is important that parties understand these requirements and how to judge whether they have been met and ensures that that contractors are paid […]
Guidance on adjustments to the Baseline Profit Rate 2016
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract. It is a legal requirement to have regard to this guidance. This document provides guidance on the adjustments to make to the baseline profit rate when determining […]
Guidance on the baseline profit rate and its adjustment 2018
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and contractors and the MOD must have regard to it, as specified […]
Guidance on the baseline profit rate and its adjustment (version 5)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have regard to […]
Guidance on the baseline profit rate and its adjustment (version 6)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have regard to […]
Guidance on the baseline profit rate and its adjustment (version 7)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have regard to […]
Guidance on the baseline profit rate and its adjustment (version 8.2)
Details The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent four-step process which helps to ensure that value for money is obtained for taxpayers on qualifying contracts and that contractors are paid a fair and reasonable price under those contracts. This guidance explains how to apply […]
Guidance on the baseline profit rate and its adjustment (version 7.2)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract (QDC) or qualifying sub-contract (QSC). The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have […]
Guidance on the baseline profit rate and its adjustment (version 7.1)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract (QDC) or qualifying sub-contract (QSC). The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have […]
Guidance on the baseline profit rate and its adjustment (version 7.3)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract (QDC) or qualifying sub-contract (QSC). The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have […]
Guidance on the baseline profit rate and its adjustment (version 8.1)
Details The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent process that ensures value for money and fair prices are obtained. Taking effect in April 2024, legislation and regulations simplified the steps in this process from six to four. The four-step process relates to contracts that […]
Guidance on how the regulatory framework applies to qualifying sub-contracts
Detail of outcome The SSRO is today publishing the outcome of its consultation on the draft guidance on how the regulatory framework for single source defence contracts applies to qualifying sub-contracts (QSCs). The consultation response sets out the changes we have made in finalising the guidance in response to our stakeholders’ feedback. We would like […]
Q&As from the 4 teach-in sessions on changes to the single source regulatory framework
The SSRO held four teach-in sessions for stakeholders, to discuss the changes to the single source regulatory framework brought in by the Procurement Act 2023 and associated secondary legislation. There were two sessions each on pricing and reporting. The aim was to develop attendees’ awareness of: The attachments contain a synopsis of the questions raised […]