Consultation outcome

Single Source Cost Standards: Statutory Guidance on Allowable Costs 2016

This consultation has concluded

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Detail of outcome

The Defence Reform Act 2014 provides the legislative basis for the Single Source Procurement Framework. The Act 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 SSRO originally published its Single Source Cost Standards: Statutory Guidance on Allowable Costs on 26 January 2015. Based on the experiences since then of the new regime, we have sought to clarify several aspects of the guidance. On 20 April 2016, the SSRO opened a public consultation on its updated guidance and the consultation closed on 1 June 2016.

We received only responses from industry and the MOD to our consultation, and all feedback received as part for the process has been carefully considered in developing the current version of the guidance. The final version of the guidance is published alongside the responses received. The consultation response document explains the changes we have made to the guidance in response to feedback.

Contact us Please contact us at helpdesk@ssro.gov.uk if you require any clarification, advice or further information.

Original consultation

Summary

The SSRO is consulting on an update to its guidance used by contractors and the Ministry of Defence when determining whether costs are Allowable under qualifying defence contracts and sub-contracts.

This consultation ran from
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Consultation description

The Defence Reform Act 2014 provides the legislative basis for the Single Source Procurement Framework. The Act 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 SSRO originally published its Single Source Cost Standards: Statutory Guidance on Allowable Costs on 26 January 2015, following a public consultation.

In light of the SSRO’s experience to date, and feedback we have received through meetings with industry and our Helpdesk, the SSRO has sought to clarify aspects of the guidance. The changes give more clarity on the areas shown in the diagram below.

Allowable Costs updated areas

This is a public consultation, which is open to anyone with an interest in the SSRO’s two statutory aims of obtaining good value for taxpayers’ money and a fair and reasonable return for industry. We also welcome comments from people or organisations with a particular interest in defence (non-competitive) procurement. The consultation will close on 1 June 2016. Following our consideration of responses to the consultation, we will publish the final guidance document in July 2016.

Published 20 April 2016
Last updated 1 July 2016 + full page history
  1. Consultation outcome published
  2. First published.