Policy paper

Review of single source regulatory framework

Recommendations following our review of the single source regulatory framework and report on the treatment of cost risk and incentives in qualifying defence contracts.



The SSRO is required under Section 39(1) of the Defence Reform Act 2014 (the Act) to keep under review the provision of the regulatory framework for single source defence contracts established by:

  • Part 2 of the Act; and
  • the Single Source Contract Regulations 2014 (the Regulations).

The Secretary of State has announced the completion of his review of the legislation and will make a further statement in early 2018. The SSRO welcomes the Secretary of State’s announcement and its recognition of the input provided by the SSRO to the review.

The SSRO made recommendations to the Secretary of State in June 2017, following extensive stakeholder engagement and a public consultation. We are grateful to all industry stakeholders for the significant contribution they made to this work during the period. The SSRO’s recommendations document can be found on this page alongside our report on the treatment of cost risk and incentives in qualifying defence contracts, which formed part of the evidence provided by the SSRO to support the Secretary of State in completing his review of the legislation.

We look forward to the Secretary of State’s further statement in early 2018 and will work with industry and the MOD on any changes proposed to the operation of the regulatory framework.

If changes to the SSRO’s guidance are needed following the Secretary of State’s review, appropriate consultation will be undertaken with stakeholders before issuing.

Published 24 January 2018