Assuring value, building confidence
The SSRO regulates the UK government’s procurement of ‘single source’, or non-competitive, military goods, works and services. It is the independent statutory regulator of single source defence procurement, issuing statutory guidance, assessing compliance and determining how the regime applies to individual contracts.
Our principal statutory aims are to ensure that good value for money is obtained for the UK taxpayer in expenditure on qualifying defence contracts, and that single source suppliers are paid a fair and reasonable price under those contracts.
The Single Source Procurement Regime came into force in December 2014, following Parliamentary approval of the regulations relating to the Defence Reform Act 2014 (‘the Act’).
We are responsible for:
- Keeping the Single Source Contract Regulations and Part 2 of the Act under review, encouraging compliance with the legislation and demonstrating that single source can be a credible alternative where it provides value for money and competitive procurement is not viable, and appropriate oversight is in place.
- Providing the Secretary of State with its assessment of the appropriate baseline profit rate, capital servicing rates and funding adjustment for each year. Following the SSRO’s recommendation, the Secretary of State determines the rates and adjustment for that year.
- Providing opinions and legally binding determinations in response to referrals from the MOD, contractors and sub-contractors.
- Publishing statutory guidance on the determination of penalty amounts to be used by the MOD in issuing penalty notices, and acting as the appeal body for penalties.
- Assessing compliance with reporting requirements and publishing an annual Compliance Report to measure industry and MOD compliance with their duties and obligations under the Act and Regulations.
- Providing independent insights into single source defence contracts, relevant to value for money and fair pricing, that enable prices to be estimated, contracts negotiated and projects managed in a more informed and effective manner.
The SSRO also provides guidance on the preparation of reports by industry. This includes:
- Publishing statutory guidance on what costs are ‘Allowable’ under qualifying defence contracts: the Single Source Cost Standards.
- Providing a full set of Defined Pricing Structure templates that cover 16 military equipment types, and enable recording of key component costs of a contract.
- Publishing reporting templates and user guides that set out the reporting requirements for primary contractors.
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