Download the full outcome
Detail of outcome
The SSRO started to review its existing statutory guidance in April 2017 and undertook a programme of engagement with stakeholders, consulting on proposed guidance changes in October and November 2017. We received 12 responses to our consultation, which we have considered and reflected in our final Allowable Costs guidance. The consultation response document explains the changes we have made to the guidance in response to feedback.
The guidance will apply to qualifying defence contracts and qualifying sub-contracts entered into on and after 1 April 2018, but is being released at this time so that stakeholders can familiarise themselves with it in advance. It will replace the current guidance (published on 1 July 2016) from 1 April 2018.
The Defence Reform Act 2014 makes the Single Source Regulations Office (SSRO) responsible for issuing statutory guidance on Allowable Costs, which contractors and the Ministry of Defence must have regard to when determining whether costs are Allowable in single source qualifying defence contracts.
The guidance was last updated on 1 July 2016. In April 2017 the SSRO commenced a review of the guidance, issuing working papers on three priority topics to relevant stakeholders for review. Responses were received from 13 stakeholders and their views are summarised in a supporting document.
The SSRO is now consulting publicly on proposed revisions to the guidance. A map that sets out the changes from the current guidance to the revised guidance has been provided to help readers to understand the proposals.
This consultation is open to anyone with an interest in the SSRO’s two statutory aims: through carrying out its functions, the SSRO aims to ensure that good value for money is obtained in government expenditure on qualifying defence contracts and that parties to these contracts are paid a fair and reasonable price. We welcome comments from individuals or organisations with a particular interest in defence (non-competitive) procurement or cost accounting.
The consultation will close on Friday 24 November 2017. Responses can be by letter or using the consultation form, in hard copy or electronic form. A proposed timetable for publishing final guidance and specific consultation questions is included in section 6 and 7 of the stakeholder response document.