Corporate report

Board minutes: 17 June 2025

Published 1 October 2025

Minutes of the 58th Board Meeting

held at RAF Club, 128 Piccadilly, W1J 7PY and via video-conference 17 June 2025 10:00-14:15

Board members present:	Others present:
Hannah Nixon (Chair)	Malcolm Botting (for part)
Roy Barker	Peter Lomas (for part)
Peter Freeman	Colin Hill
Alastair Groom	Ruaidhri Magee (for part)
Hugh Kelly	Jane McGovern (for part)
John Russell	Siobhan O’Donoghue
Joanne Watts	David Pottruff (for part)
Claire Williams	Peter Regan (for part)
	Akhlaq Shah
	Colin Sharples (for part)
	Tara Usher (MOD)

1. Closed Board discussion

The Chair held a private session with NEBMs, the Chief Executive and the Chief Regulatory Officer.

2. Welcome, apologies, announcements, and declarations of interest

The Chair welcomed Board members and attendees to the meeting, including Akhlaq Shah (Head of Compliance), attending as the ‘open chair’ representative.

There were no apologies for absence.

The Board noted that this was NEBM Peter Freeman’s final SSRO Board meeting as his term ended on 5 September 2025.  On behalf of the Board and staff, the Chair paid tribute to Peter and thanked him for his significant contribution to the SSRO during his eight-year term on the Board, as well as for his support to her as Chair.

There were no declarations of interest.

3. Minutes of 57th meeting held on 25 March 2025 (SSRO 01-0625), and action tracker (SSRO 02-0625)

The minutes of the Board meeting held on 25 March 2025 were approved as a correct record.  There were no outstanding or overdue actions.

The Board approved as a correct record the minutes of the 57th SSRO Board meeting held on 25 March 2025.

4. Chief Executive’s Report (SSRO 03-0625)

The Chief Executive presented his regular report, which detailed recent activities, current priorities, and key matters not covered elsewhere on the agenda.

Alongside delivery of core responsibilities, areas of focus included maintaining momentum around the upcoming review of the single source contract regulations (SSCRs), and engagement on the Defence Industrial Strategy (DIS) and the recently published Strategic Defence Review (SDR).  The Board also noted progress in the establishment of the National Armaments Director (NAD) Group, and updates on other MOD and government programmes, including the Cabinet Office ALB review.

The Board noted plans for piloting the responsible use of Artificial Intelligence (AI), and suggested a future strategic presentation to either the Audit and Risk Assurance Committee or full Board on AI and its use. (ACTION:  Colin Hill / Akhlaq Shah).

The Board welcomed the ongoing roll-out of MI Reports, noting the 34% increase in visits to these reports over the last year.  The Board suggested that consideration be given to how, going forward, real-world case studies and DefCARS user feedback might be used to promote the use of DefCARS data and help demonstrate its role in driving value for money. (ACTION:  John Russell / Jo Watts)

The Board noted the Chief Executive’s Report.

5. 2025-26 Corporate Plan (SSRO 04-0625)

A final draft Corporate Plan was presented for the Board’s approval.  The draft reflected feedback and comments received from MOD Commercial and Sponsor Team colleagues, and the Board noted the key changes made since the version presented at its March 2025 meeting.  Alongside the Corporate Plan, the 2025-26 operational plan was being finalised, although this remained subject to 2025-26 budget confirmation.  Following the Board meeting, the Corporate Plan would be submitted to the Minister DP&I for Ministerial endorsement, for publication thereafter.

The Board:

• approved the 2025-26 Corporate Plan; and
• authorised the Chair, after consultation with the Chief Executive, to agree any final changes to the Plan, provided they were not inconsistent with the Board’s views.

6. Corporate Performance Report (SSRO 05-0625)

The Board discussed the Corporate Performance Report, which provided a summary of performance against the SSRO’s strategic priorities and Corporate Plan objectives (based on the draft Plan) and corporate risks up to the end of May 2025.  Key focus areas included engagement on the SDR and the SSCR review; and the future support and development of DefCARS and IT Managed Services, which was covered in a separate item elsewhere on the agenda.  Regarding corporate risks, a key concern was the potential impact of any extended delay to the 2025-26 budget confirmation.

The Board noted the Corporate Performance Report.

7. 2024-25 Audit and Risk Assurance Committee Annual Report (SSRO 06-0625)

The Chair of the Audit and Risk Assurance Committee presented the committee’s annual report, which supported the Board and Accounting Officer in their responsibilities around the 2024-25 Annual Report and Accounts.  The annual report provided assurances on the reliability and integrity of the work it had considered throughout the year.  The Board was pleased to note the ‘substantial’ annual internal audit opinion for 2024-25, and also the ‘substantial’ opinion for the recent Key Financial Controls internal audit review.

The Board noted the Audit and Risk Assurance Committee’s Annual Report for 2024-25.

8. 2024-25 SSRO Annual Report and Accounts (SSRO 07-0625)

The Head of Corporate Resources presented the final draft 2024-25 Annual Report and Accounts (ARA) for the Board’s approval, drawing attention to particular financial matters.

The draft ARA reflected comments received from the Board, MOD colleagues and the NAO team.  Although further amendments were possible up to the date of certification, these were unlikely to be material.  The expectation was to present the ARA to the Comptroller & Auditor General for certification on 10 July 2025.

The Board thanked the teams involved in the production of the 2024-25 ARA.

The Board:

• confirmed that a going concern basis remained appropriate for the financial statements;
• reviewed and commented on the SSRO’s Annual Report & Accounts 2024-25;
• approved the document for presentation to the Comptroller & Auditor General; and
• delegated any subsequent revisions of the document to the Chief Executive.

9. DefCARS and IT Managed Services (ITMS) procurement (SSRO 08-0625)

At its March 2025 meeting, the Board approved a preferred procurement route and contract value envelope for the future support and development of both DefCARS and IT managed services.  The Board was now presented with a revised proposal, including an increased contract value, informed by conclusions and recommendations provided by a specialist external IT consultant, which had been asked to assess the current state, and provide strategic service design and a roadmap for the future reporting service.  The consultants’ detailed findings had been considered previously by the Chief Executive and a sub-group of Board members.

The Board noted the updated procurement proposal, contract envelope and timeline, noting the latter was subject to receiving MOD approval of the outline business case.  The Board supported the strategic and longer-term approach, and the additional assurance provided by the external experts.  The Board would be kept informed of progress with the procurement exercise.

The Board:

• approved the revised estimated contract value for a procurement of a 5-year contract (3 years +1 +1 years) for the support and development of DefCARS and ITMS support services.
• noted, as agreed previously and subject to adequate funding being identified, the permanent reallocation of budget savings to maintain the security of the existing system;
• noted that the Chief Executive had delegated authority to approve the tender launch of the contract and thereafter to enter into the contract on behalf of the SSRO, subject to MOD approval to tender;
• noted the revisions to the key stages of the procurement plan; and
• noted the output from the specialist IT consultancy.

The Open Chair representative withdrew from the room for the following item

10. Succession Planning (SSRO 07-0625)

The Human Resources Manager presented an update on the SSRO’s succession planning approach, the purpose of which was to mitigate risks of losing key skills, experience and corporate knowledge as a result of staff departures, as well as the promotion of staff retention through active career planning.  The report also updated the Board on other aspects of the SSRO’s Workforce Strategy, including ongoing actions to enhance commercial skills through training and upskilling, placement opportunities for relevant staff, and recent targeted recruitment.

The Board welcomed the approach, noting that, although staff turnover was low and recruitment and retention was a low-risk area, the organisation’s size and specialist role meant succession planning and staff upskilling were helpful tools, as was the ability to draw on specialist external resources in response to specific temporary requirements.  Appropriate documentation of key processes was also important for supporting knowledge transfer.

The Board noted:

• The update on succession planning;
• the focus on improving commercial skills via training and engagement for all relevant staff; and
• the successful targeting of recruitment to secure hires with MOD or defence industry sector experience.

The Open Chair representative rejoined the meeting

11. 2025 Stakeholder Survey Results (SSRO 08-0625)

The Board considered headline and detailed results from the SSRO’s fourth Stakeholder Survey.  The survey had been undertaken by a third party to ensure independence and respondents’ anonymity.  Results were positive, with high levels of satisfaction with the SSRO’s performance and work.  In particular, there was positive feedback from stakeholders on the SSRO’s products and support services, including recent developments such as the non-referral advice service and improvements to guidance.  The survey findings provided valuable insights to inform current work, future priorities and potential areas for development.

The Board welcomed the results and was supportive of sharing the findings with MOD colleagues, so that developments could be taken forward with their input, particularly around DefCARS use.  The establishment of the National Armaments Director group might also be an opportunity to promote DefCARS and other SSRO services.

The 2025 Stakeholder Survey results would be used to inform a refresh of the SSRO’s Stakeholder Engagement Strategy, which was due to be presented to the Board at its September 2025 meeting.

The Board:

• considered the results of the SSRO Stakeholder Survey 2025;
• agreed that the Stakeholder Survey summary findings and detailed report be published on our website, once finalised;
• noted that SSRO staff had been provided with the survey results data to reflect on the findings, and inform ongoing work and future strategic planning; and
• noted that an updated Stakeholder Engagement Strategy, informed by the results of the stakeholder survey, would be presented to the Board at its September 2025 meeting.

12. Annual Compliance update (SSRO 09-0625)

The Board noted the SSRO’s compliance activities undertaken during 2024-25 and the work planned for 2025-26, and considered proposals for changes to the SSRO’s compliance KPIs, as well as proposals for the future approach to reviews.

The Board noted the update and discussed the issues raised in the report including: the ongoing challenges with compliance reporting, the ongoing need for increased and better use of DefCARS data by the MOD; and the benefits of more-targeted and thematic reviews.

Several of the issues raised in the compliance update might helpfully be considered within the context of the upcoming SSCR.

The Board noted:

• the compliance activities undertaken by the SSRO during 2024-25;
• plans to change the compliance KPIs; and
• the intention to no longer manually review all reports but instead focus on fewer in-depth, targeted and thematic reviews, together with analysis-based metrics.

13. Referrals and Non-Referral Advice Service: annual update (SSRO 10-0625)

The Board discussed the update on referrals activity and the non-referral advice service (NRAS) during the past 12-months, including the positive feedback received from users.  The update also set out proposals for 2025-26, including exploration of ways the NRAS offer could be scaled up and how this might be resourced.

The Board welcomed the update and the positive feedback on NRAS to date.  The service had been a welcome addition to the SSRO’s support offer and was well-used by industry and the MOD.  The NRAS had also been valuable in informing the development of SSRO guidance and the helpdesk service.

The Board noted the update on referrals and the Non-Referral Advice Service.

14. Draft guidance on Qualifying Sub-Contracts (SSRO 11-0625)

The Board considered draft SSRO guidance on how the regulatory framework for single source defence contracts applied to qualifying sub-contracts (QSCs).  This was new guidance, which had been developed in response to stakeholder feedback gathered through the Operational Working Group.  A consultation response document - summarising feedback received, particular matters raised by respondents, and how the SSRO planned to respond to these points - had also been shared.

Most consultation respondents had been positive, commenting that the proposed guidance was helpful to their understanding of the regulatory provisions and requirements.  There were a small number of matters where the SSRO’s interpretation of the regulatory provisions differed to that of industry respondents, which the consultation response document sought to address.  Further stakeholder engagement on these particular issues was anticipated, once the guidance had been published.

The Board considered and approved for publication:

• the SSRO’s new guidance on the provisions of the regulatory framework which relate to QSCs; and
• the SSRO’s consultation response document.

15. Report from the Audit and Risk Assurance Committee (SSRO 12-0625)

The Chair of the Audit and Risk Assurance Committee provided an oral report from the 3 June 2025 meeting.  Further to the Board’s endorsement at its March 2025 meeting of the proposed internal audit approach for 2025-26, discussions with the Government Internal Audit Agency were ongoing.

The Board noted the update from the 3 June 2025 Audit and Risk Assurance Committee.

15. Future workplan (SSRO 13-0365) and reflections on meeting

The Board noted the summary of future Board meeting business and reflected on the business considered at the meeting.

16. Any other business

There was no further business.

The meeting was followed by a discussion with Adrian Jackson, Chief Executive of the Oil and Pipelines Agency (OPA), and the Board’s annual Strategy Session.

17. Next Board meeting

The next meeting of the Board would take place on 30 September 2025.