The Single Source Regulations Office (SSRO) has today launched the first stage of its review of the regulatory framework for single source defence contracts.
The Secretary of State for Defence is required to conduct periodic reviews of the framework, with the SSRO required to provide its recommendations for the first of these by June 2017.
The regulatory framework was introduced by the Defence Reform Act 2014 and the Single Source Contract Regulations 2014. It aims to strike a balance between value for money for the taxpayer and fair prices for contractors by subjecting covered contracts to price control and by requiring suppliers to report a range of information to provide transparency.
The SSRO will be consulting widely before making its recommendations and, as a first step in this process, it is now calling for input on a range of topics in the areas of:
- Coverage – what types and size of contracts should be covered by the Regulations?
- Pricing – how should profit rates be set and what costs should be allowed?
- SSRO operations – how should the SSRO be governed and funded?
- Referrals and enforcement – what powers should the SSRO have and how should they be used?
- Transparency – what records and reports should be required and in what form?
The SSRO’s call for input is intended to stimulate feedback in these key areas but representations on all issues relevant to the review are welcome.
The deadline for responses for this initial call for input is 15 July 2016. There will be further opportunities to contribute to the formation of the SSRO’s recommendations, including a widespread public consultation on the proposed recommendations which is scheduled for early 2017.