The SSRO will hold its third teach-in session of 2026 on 21 October, focusing on how the incentive adjustment can be used in calculating the contract profit rate for qualifying defence contracts (QDCs). The training will take place online via Microsoft Teams from 2.30pm to 4.00pm (GMT).
On 14 May the Minister for Defence Readiness and Industry announced reforms to the Single Source Contract Regulations, in line with the Defence Industrial Strategy and Strategic Defence Review, to closely link supplier profit to delivery performance. By increasing the potential profit available for achieving faster delivery and greater productivity, the changes aim to drive innovation and accelerate capability to the frontline, maximising value from defence spending.
Under the revised framework, the maximum incentive adjustment for qualifying defence contracts is increasing from two percentage points to ten percentage points to incentivise improved contractor performance. New statutory safeguards have also been introduced to govern the design and application of incentive arrangements, alongside clarification of the SSRO’s role in providing opinions on pricing matters, including the incentive adjustment.
The teach-in will help attendees gain a better understanding of the legislative changes.
The SSRO’s teach-in programme is informed by feedback from the Ministry of Defence (MOD) and industry contractors and by insights from the SSRO’s wider work, highlighting where additional support to apply the regulatory framework would be helpful.
Who should attend: The session will benefit commercial, procurement, legal, and regulatory specialists in public and private sector organisations involved in non-competitive defence contracting. In particular, the teach-in is aimed at organisations who are parties to contracts which are subject to the single source regulatory framework or who expect to be in the future.
How to register or request information: To register your interest in the teach-in or to request further information, please complete this Form: Registration of Interest: Incentive Adjustment Teach-In.
If this is a topic of interest to you but you are unable to attend on 21 October, please let us know so that we can keep you informed of future SSRO publications on the subject and forthcoming SSRO teach-ins on other topics.