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Final price adjustment

Guidance on the application of the final price adjustment (FPA) (version 1.1)

Published on 16 March 2026

The FPA calculator has been updated to reflect changes to the incentive adjustment that were announced by the Minister of Defence Readiness and Industry and come into force on the 5 June 2026: Written statements – Reforms to the Single Source Contract Regulations. Where cost over- or underruns occur on qualifying defence contracts this can […]

Guidance on the application of the final price adjustment (FPA) Version 1

Published on 30 January 2025

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 […]

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