Compliance and review methodology – January 2017
Published on 24 January 2017
The SSRO has recently reviewed its model of regulation, in the light of these obligations, its experience to date and current regulatory best practice. It consulted on its updated compliance and review methodology between 27 September and 8 November 2016. The SSRO received responses from industry, government and defence consultants during the six-week consultation, which […]
Capital servicing adjustments in qualifying defence contracts
Published on 25 October 2016
Details When agreeing a contract profit rate for qualifying defence contracts, contractors and the MOD must follow a six-step process. The sixth step is the capital servicing adjustment (CSA), which aims to ensure that the primary contractor receives ‘an appropriate and reasonable return’ on the fixed and working capital it employs in contract delivery. This […]
Consultation on the compliance and review methodology – September 2016
Published on 27 September 2016
Detail of outcome The Defence Reform Act 2014 places obligations on the SSRO to keep under review the regulatory framework and the extent to which organisations subject to reporting requirements are complying with them. The SSRO has recently reviewed its model of regulation, in the light of these obligations, its experience to date and current […]
Perspectives on non-competitive defence spending – September 2016
Published on 15 September 2016
Details The Single Source Regulations Office (SSRO) as the independent regulator of this type of procurement invited academics, defence experts, accountants and former members of the military to reflect on the aspects of single source procurement that work well and those where changes might be needed. International perspectives from Germany and Canada were also provided. […]
Call for input: Transparency
Published on 12 September 2016
Detail of outcome A summary of the responses received to this call for input was published on 30 January 2017. Original consultation Consultation description The Secretary of State for Defence is required to conduct periodic reviews of the regulatory framework for single source defence contracts, with the SSRO providing its recommendations for the first of these by […]
International aspects of Qualifying Defence Contracts 2015/16
Published on 7 September 2016
Details Defence suppliers are required to provide information to the Single Source Regulations Office about the companies involved in QDCs and QSCs, either as a prime contractor or sub-contractor, and any significant payments made by the MOD to these companies. This bulletin provides analysis of these companies, in particular whether they or their ultimate parent […]
Sub-contracts reported in Qualifying Defence Contracts 2015/16
Published on 28 July 2016
Details Defence suppliers are required to provide information to the Single Source Regulations Office about the 20 highest value sub-contracts for each QDC and QSC, where the sub-contracts are over £1 million in value. This bulletin provides an analysis of the reported sub-contracts within 33 QDCs/QSCs entered into within the period 1 April 2015 to […]
Engineering labour rates reported in Qualifying Defence Contracts 2015/16
Published on 21 July 2016
Details A key piece of information required in understanding the facts, assumptions and calculations relevant to each element of the Allowable Costs in a QDC/QSC is the labour rates used in pricing the contract. This bulletin examines the range of engineering labour rates used within QDCs/QSCs, as reported for 34 QDCs/QSCs entered into between 1 […]
SSRO interim compliance statement July 2016
Published on 14 July 2016
Details The statement provides an update on compliance with the Defence Reform Act and the Single Source Contract Regulations since the first annual Compliance Report was published in January 2016. It also considers whether the pricing controls of the regime are being correctly applied. The statement covers the period 1 April 2015 and 31 March 2016, during […]
Contract pricing methods reported in Qualifying Defence Contracts 2015-16
Published on 13 July 2016
Details The Single Source Contract Regulations 2014 introduced six regulated pricing methods that suppliers are permitted to use when pricing single source contracts with the Ministry of Defence. The profit earned on a QDC can be influenced by the pricing method used. For example, for firm and estimate-based fee pricing methods the profit within the […]