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Profit rates

Guidance on the baseline profit rate and its adjustment 2018

Published on 15 March 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 […]

Profit rates reported in Qualifying Defence Contracts 2015/16

Published on 25 May 2016

Details This report highlights the planned contract profit rates reported for 30 QDCs/QSCs entered into between 1 April 2015 to 31 March 2016. The analysis shows on average, QDCs/QSCs reported a contract profit rate of 11.7 per cent in 2015/16. Excluding the Profit On Cost Once (POCO) adjustment, it was 12.0 per cent. Contract profit […]

Guidance on adjustments to the Baseline Profit Rate 2016

Published on 24 March 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 […]

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