The regulatory framework for single source defence contracts governs some of the UK’s most strategically significant defence contracts. Since 2015, the single source regulatory framework has applied to contracts worth £140.1 billion. The SSRO aims through its work to ensure that this spending delivers value for money for the taxpayer and fair and reasonable prices for contractors.
The SSRO issues guidance on the application or interpretation of various aspects of the single source regulatory framework. The SSRO’s guidance aims to support contracting parties in understanding and applying the regime, by providing an effective, more accessible approach to guidance that helps defence contractors and the MOD understand how the framework operates in practice and in supporting more consistent decision-making in defence procurement.
The SSRO has been working to review and strengthen its guidance in response to legislative changes; stakeholder feedback; and practical experience of how the regulatory framework is being applied. The review forms part of the SSRO’s commitment to effectively supporting both existing and new entrants to the regulatory framework. By ensuring the guidance remains clear, relevant and easy to use, the SSRO aims to improve understanding of regulatory requirements, reduce uncertainty and support efficient defence procurement outcomes.
The SSRO’s Corporate Plan commits the SSRO to supporting the MOD and industry in applying the regulatory framework consistently and effectively. This plan also includes a commitment to review and update guidance, drawing on evidence gathered through stakeholder engagement and support services.
This guidance review builds on approaches used in recent guidance development, including the use of: practical examples; commonly asked questions; improved signposting to related guidance and legislation; and focus on structuring the guidance for ease of navigation and use.
Scope of the call for input
This call for input is focused on the core fundamentals of the regime and the pricing of contracts. In particular it covers three core areas:
- Part 1 – General: definitions, scope-setting concepts, core interpretive fundamental
- Part 2 – Qualifying defence contracts: which contracts fall into the regime and under what conditions.
- Part 3 – Pricing of contracts: how those contracts are priced including allowable costs, profit rates and adjustments
Through stakeholder engagement and observation of how guidance is used in practice, the SSRO has identified several potential areas for new or improved guidance. These include:
| Identified Area | Summary |
|---|---|
| Default pricing methods | Ensuring users have sufficient clarity on the application of the six default pricing methods |
| Components and componentisation | Helping users understand when and how componentisation provisions should be applied. |
| Determining the value of a QDC or QSC | Clarifying threshold calculations, contract value and aggregation provisions. |
| Regulation 7A: new contracts versus amendment | Clarifying the distinction between new contracts and amendments. |
| Navigation, usability and signposting | Ensuring guidance is easy to find, navigate and use. |
The SSRO welcomes views on these topics and on any other areas where stakeholders believe guidance could be improved, expanded or better aligned with related guidance.
How to respond
The call for input runs from 05 Aug 2026 to 30 Oct 2026.
The call for input contains several framing questions intended to assist users. Respondents are welcome to answer as many or as few questions as they wish, and to provide additional comments on any aspect of the SSRO’s guidance offering.
The call for input is open to all stakeholders. Responses can be submitted using the response form available on this webpage. Responses should be sent to consultations@ssro.gov.uk
If you would prefer to discuss your views, please contact our helpdesk at helpdesk@ssro.gov.uk or 020 3771 4785, who will help to arrange a meeting.
