Research and analysis

Sub-contracts reported in Qualifying Defence Contracts 2015/16

The Single Source Regulations Office has published an analysis of the reported sub-contracts used in qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs) entered into in 2015/16.

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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.

Published 28 July 2016