Guidance on the baseline profit rate and its adjustment (version 8.3)
Published on 16 March 2026
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 those […]
Baseline profit rate methodology March 2026
Published on 13 March 2026
Under the Defence Reform Act 2014 (the Act), the 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 that, for each financial year, the SSRO must provide the Secretary of State with its […]