Defence suppliers are required to provide information to the Single Source Regulations Office about the 20 highest value sub-contracts for each QDC and QSC, where the sub-contracts are over £1 million in value. This bulletin provides an analysis of the reported sub-contracts within 33 QDCs/QSCs entered into within the period 1 April 2015 to 31 March 2016.
The analysis shows the total value of reported sub-contracts is £1.8 billion; 17 per cent of the total contract value across the 33 QDCs/QSCs. Nineteen QDCs/QSCs reported having at least one sub-contract worth over £1 million, with 112 sub-contracts reported in total. Forty per cent (£720 million) of all reported planned sub-contract expenditure occurs between suppliers within 10 ultimate parent companies, acting as either the prime contractor or sub-contractor. Of this, eight per cent (£60 million) is where a supplier has sub-contracted out to another company within the same corporate group.
The sub-contract values reported are those agreed at contract signing, and may not reflect those at contract completion.