The Single Source Regulations Office or SSRO is an executive non-departmental public body, sponsored by the Ministry of Defence (MOD). We play a key role in the regulation of single source, or non-competitive defence contracts.
When undertaking our statutory functions we aim to ensure: that good value for money is obtained in government expenditure on qualifying defence contracts, and that persons who are parties to qualifying defence contracts are paid a fair and reasonable price under those contracts.
The Defence Reform Act 2014 (‘the Act’) created a regulatory framework for single source defence contracts. The framework came fully into force in December 2014, following Parliamentary approval of the Single Source Contract Regulations 2014. The framework places controls on the prices of qualifying contracts and requires greater transparency on the part of defence contractors. The SSRO is at the heart of the regulatory framework, supporting its operation.
We are responsible for:
- Keeping under review the Defence Reform Act and the Regulations and recommending appropriate changes to the Secretary of State.
- Making an annual recommendation to the Secretary of State on the Baseline Profit Rate, Capital Servicing Rates and SSRO funding adjustment to be applied in determining the profit rates of qualifying contracts.
- Giving opinions and making determinations on questions referred by the MOD and defence contractors, clarifying how the regime applies to qualifying contracts and resolving disagreements.
- Keeping under review the extent to which contractors are complying with their reporting obligations.
- Keeping an up-to-date record of qualifying contracts and receiving statutory reports from defence contractors into the SSRO’s DefCARS database.
- Fulfilling requests by the Secretary of State for analysis of reported data and providing other services or assistance relating to single source defence procurement.
The SSRO publishes guidance on:
- determining whether costs are ‘Allowable’ under a qualifying defence contract or qualifying sub-contract;
- the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract;
- preparing reports required under the Act; and
- the determination of penalty amounts to be used by the MOD in issuing penalty notices.