Guidance on the baseline profit rate and its adjustment (version 8.2)
Published on 14 March 2025
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 8.1)
Published on 10 October 2024
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 the baseline profit rate and its adjustment (version 8)
Published on 24 January 2024
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 […]
Guidance on the baseline profit rate and its adjustment (version 7.3)
Published on 16 March 2023
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 […]
2022 contract profit rate recommendation
Published on 5 April 2022
Details The Minister for Defence Procurement, on behalf of the Secretary of State for Defence, has announced his determination of the baseline profit rate, SSRO funding adjustment and capital servicing rates for fixed and working capital for this year. These rates will apply to qualifying contracts entered into from 1 April 2022. The rates can […]
Guidance on the baseline profit rate and its adjustment (version 7.2)
Published on 1 March 2022
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)
Published on 5 August 2021
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 […]
2021 contract profit rate
Published on 15 March 2021
Details Under the Defence Reform Act 2014 (the Act), the Single Source Regulations Office (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 us to provide the Secretary of State with an assessment of the […]
Guidance on the baseline profit rate and its adjustment (version 7)
Published on 15 March 2021
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)
Published on 16 March 2020
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 […]