Research and analysis

Annual qualifying defence contract statistics: 2016/17

The Single Source Regulations Office has published the first of its annual publications on key statistics relating to qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs).



The annual statistics bulletin is part of a regular published series of statistical reports, containing analysis of key QDC/QSC information. This annual publication includes analysis of all contracts that became a QDC/QSC between 1 April 2016 and 31 March 2017, and includes data for Quarter 4 2016/17 within the quarterly series of bulletins. Data is also presented from 1 April 2015, when contract reports were first submitted.

As of 31 March 2017, the SSRO was notified of 97 contracts that became QDCs/QSCs. Contractors have one month after the date the contract becomes a QDC to submit reports, and as of 30 April 2017 the SSRO had received contract reports for 88 contracts that became QDCs/QSCs between 1 April 2015 and 31 March 2017, which the analysis is based on. This comprised 75 QDCs and 13 QSCs, across 45 different contracting companies. Comparing each year, the number of QDCs/QSCs has increased from 34 in 2015/16 to 54 in 2016/17.

The estimated total contract price of QDCs/QSCs was £11.8 billion in 2015/16 and £7.9 billion in 2016/17 (totalling £19.7 billion across the two years). The average reported contract profit rate of QDCs/QSCs decreased from 11.57 per cent for QDCs/QSCs in 2015/16 to 10.72 per cent for QDCs/QSCs in 2016/17.

The values reported are those agreed when the contract was signed or amended, and may not reflect those at contract completion. The publication schedule for the next four quarterly bulletins is as follows:

Quarterly bulletin Date Published
Q1 2017/18 10 August 2017
Q2 2017/18 November 2017
Q3 2017/18 February 2018
Q4 2017/18 Annual Statistics – June 2018
Published 12 June 2017