Single Source Regulations Office Board - MOD Representative Protocol
Published 24 January 2022
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Introduction
The MOD and the SSRO agreed the 2020 Tailored Review of the SSRO recommendation that: “Subject to further consideration to ensure that it does not create a conflict with the SSRO’s ability to fulfil its statutory functions, that the Secretary of State appoints a sponsor representative from a non-procurement function of the MOD (or from another government department with a role in defence) as either a full member or as an observer on the Board”.
This protocol sets out how these arrangements will work in relation to the SSRO Board.
MOD Representative role
The MOD Representative attending the SSRO Board will be drawn from the relevant Head of Sponsorship within the Directorate of Sponsorship and Organisational Policy (DSOP) in MOD Head Office. They will participate in meetings of the SSRO Board as the representative of the MOD Owner to provide support and advice in relation to MOD’s strategic position, the impact of Board decisions on the MOD, and Board awareness of relevant MOD work that may impact on the SSRO. They will provide support, advice and facilitate communication in relation to strategic and corporate planning, corporate performance, and risk management, and SSRO compliance with its responsibilities as an MOD Arm’s Length Body and as an Enabling Organisation within the Defence Operating Model.
The MOD Representative will have observer status at SSRO Board meetings. They will not act in a decision making capacity and not form part of the quorum.
Unless otherwise permitted by the Chair, the MOD Representative will recuse themself from Board discussions where there is a conflict of interest relating to SSRO’s statutory functions in Part 2 of the Defence Reform Act 2014 and those of the Secretary of State or where their attendance may prevent the SSRO carrying out statutory duties for which it must be impartial, including:
- Decisions on the methodology for assessing the appropriate baseline profit rate, capital servicing rates and the SSRO funding adjustment used to calculate the contract profit rate for qualifying contracts.
- The annual profit rates assessment.
- Guidance on allowable costs; the baseline profit rate and its adjustment; determining the amount of a penalty; and reporting and DefCARS.
- Opinions and determinations affecting the Secretary of State or the MOD.
- Recommendations for legislative change.
The Chair may exclude Board members and/or the MOD Representative from Board discussions at his/her discretion, including where there is a specific conflict of interest that may prevent the SSRO carrying out statutory duties or reasonable matters in relation to the confidentiality or sensitivity of the issue to be discussed.
Issues or differences of opinion over the operation of the protocol will, if possible, be resolved through discussion between the SSRO Chair and the MOD [senior] sponsor.