First Annual Report and Accounts published by the Single Source Regulations Office
The new regulator of the procurement of ‘single source’ military equipment and services has published its first Annual Report and Accounts.
In its first year, the Single Source Regulations Office has:
- introduced a range of new guidance on issues such as the costs which are ‘allowable’ under single source contracts;
- recommended to the Secretary of State that the baseline profit rate for single source defence contracts for 2015 should be reduced to 10.60 per cent;
- provided a suite of reporting templates and user guides to assist industry in completing and submitting reports;
- set out its procedures for issuing opinions or legally binding determinations on matters referred to it by the Ministry of Defence or industry; and
- established itself as a fully resourced organisation that is ready for business.
Marcine Waterman, Chief Executive of the SSRO, said:
The Annual Report looks back on a challenging but successful first year, during which we have established ourselves as a fully operational organisation – while carrying out the statutory functions required by the Defence Reform Act. Although we started with few staff, we are now moving towards a fully resourced team and stand ready to make a big difference.
Over the next year the SSRO’s work will include a fundamental review of the principles and methodologies used to calculate the baseline profit rate paid under single source contracts. It will also collect and analyse data submitted by industry to help the MOD to secure better value for money.
Jeremy Newman, Chair of the SSRO, said:
Defence contractors are vital to both the UK economy and national security so it is important that the SSRO’s work results in benefits to business. Through our work we will demonstrate that single source is a credible method of procurement, where circumstances require it and where appropriate oversight is in place. We look forward to the challenges and opportunities ahead.
Published: 17 July 2015