The purpose of the small and medium enterprise (SME) report is to help the government understand the use of SMEs across all its key suppliers and gain understanding and insight into the use of SMEs for defence contracts.
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.
This report records the following information:
- a description of the policies and procedures for engaging with SMEs, which includes the standard contract or payment terms and any special assistance provided to them;
- a description of any initiatives intended to increase opportunities for SMEs to support the delivery of defence contracts or encourage technical innovation by SMEs relevant to such contracts;
- an estimate of the total revenue received from defence contracts and the amount of that total revenue that related to purchasing goods and services for the purpose of defence contracts;
- an estimate of that total revenue listed above that related to purchasing goods and services from SMEs; and
- a description of the extent to which SMEs have contributed to the defence contracts, for example spend, jobs or IPR.
The SME report is due within 12 months after the end of the accounting period, or the date on which the ongoing contract condition was first met in relation to the relevant financial year; whichever is later.