The purpose of the SICR is to allow the MOD and SSRO to understand, for each qualifying business unit (QBU), the capabilities or activities provided for defence contracts and the capacity that is on the site to deliver them.
It also requires a description of the key infrastructure on the site used in the delivery of defence contracts, the extent to which the capacity available on the site has been used and the forecast costs of maintaining industrial capacity.
There is no report template for the strategic industry capacity report (SICR) due to the bespoke nature of the information included in the report. The report must be provided to the Secretary of State and the SSRO in either electronic form or in hard copy.
The minimum value of the qualifying defence contract or qualifying subcontract for the reporting requirement to be imposed is:
- £20 million for the financial years ending on 31 March 2016 and 31 March 2017; or
- £50 million for subsequent financial years.
The report includes the following:
- Regarding corporate structure:
- details of any undertakings associated with the designated person, including the estimated number of full time equivalent employees engaged in work on the site that relates to any qualifying defence contract, qualifying subcontract or other defence contract, and the key skills of those employees;
- a description of forecast costs for the five years;
- a description of forecast labour requirements for those five years;
- an explanation of the reasons for any material changes in the cost of maintaining industrial capacity; and
- a description of any likely event or change in circumstances relating to qualifying defence contracts, qualifying subcontracts or other defence contracts that could have a material effect on the ability of the designated person to maintain its industrial capacity.
- Regarding activities, people and infrastructure:
- the capabilities or activities provided on the site for defence contracts;
- the capacity which is on the site to deliver those capabilities or activities;
- a description of the key infrastructure on the site used in the delivery of defence contracts; and
- the extent to which the capacity available on the site has been used.
- Regarding forecast costs of maintaining industrial capacity:
- information that must be provided on the forecast costs of maintaining industrial capacity.
- Regarding capacity and supply chain:
- the key planning assumptions for any possible future qualifying defence contract;
- any current under-capacity or over-capacity of personnel or infrastructure relative to current committed work and planned future contracts, and any plans to rectify that;
- any current or planned measures to improve efficiency or productivity relative to current committed work and planned future contracts;
- any plans for material investment in people, skills or infrastructure in order to deliver current committed work and planned future contracts, including the approximate costs of those plans;
- any likely event or change in circumstances relating to the supply chain that could have a material effect on the performance of current committed work and planned future contracts.
The SICR is due 12 months after either the end of the time period in relation to which financial accounting statements are prepared for the designated person and which ends on any day falling within the relevant financial year, or the date on which the ongoing contract condition was first met in relation to the relevant financial year, whichever is the later. Alternatively, a date agreed between the designated person and the Secretary of State, which is within six months after the end of the periods described above.