Single Source Contract Regulations

Contents: The Single Source Contract Regulations are UK legislation, made by the Secretary of State under powers conferred by Part 2 of the Defence Reform Act. The regulatory framework applies to “single source contracts” (contracts which are not subject to a legal obligation to be advertised and competed) in the defence area. The framework applies both to primary contracts, called qualifying defence contracts, and to non-competed sub-contracts resulting from those primary contracts, called qualifying sub-contracts.

Contents

• PART 1 General

• 1. Citation and commencement

• 2. Interpretation

• 3. Meaning of “defence purposes”

• 4. Meaning of “contract completion date”

• 5. Calculating the value of a contract

• PART 2 Qualifying defence contracts

• 6. Threshold value for qualifying defence contracts

• 7. Contracts that may not be qualifying defence contracts

• 8. Competitive process for single contracts

• 9. Competitive process for contracts made under a framework agreement

• PART 3 Pricing of contracts

• 10. Pricing of contracts

• 11. Steps in determining contract profit rate

• 12. Calculation of profit on cost once (“POCO”) adjustment

• 13. Rates agreed on a group basis

• 14. Re-determination of contract price

• 15. Target cost incentive fee (“TCIF”) adjustment

• 16. Procedure for determining final price adjustment

• 17. Calculation of final price adjustment

• 18. Determination of contract profit rate adjustments

• 19. Determination of allowable costs

• PART 4 Records

• 20. Duty to keep relevant records

• 21. Examination of relevant records

• PART 5 Reports on qualifying defence contracts

• 22. General requirements and interpretation

• 23. Contract pricing statement

• 24. Contract reporting plan

• 25. Contract notification report

• 26. Quarterly contract report

• 27. Interim contract report

• 28. Contract completion report

• 29. Contract costs statement

• 30. On-demand contract report

• PART 6 Reports on overheads and forward planning etc

• 31. Application of this Part

• 32. Interpretation

• 33. General requirements

• 34. Actual rates claim report

• 35. QBU actual cost analysis report

• 36. Estimated rates claim report

• 37. QBU estimated cost analysis report

• 38. Estimated rates agreement pricing statement

• 39. Rates comparison report

• 40. Strategic industry capacity report: general requirements

• 41. Strategic industry capacity report: corporate structure

• 42. Strategic industry capacity report: activities, people and infrastructure

• 43. Strategic industry capacity report: forecast costs of maintaining industrial capacity

• 44. Strategic industry capacity report: capacity and supply chain

• 45. Small or medium enterprises (“SME”) report

• PART 7 Records and reports: restrictions

• 46. Disapplication of requirements to give information

• 47. Reference to SSRO to investigate obligation of confidentiality

• PART 8 Compliance

• 48. Contraventions of section 31

• 49. Time limits for compliance notices and penalty notices

• 50. Maximum penalties

• PART 9 SSRO: opinions and determinations

• 51. Matters on which the SSRO must give an opinion

• 52. Matters in relation to which the SSRO must make a determination

• 53. Time limits for applications for opinions

• 54. Matters to which the SSRO must have regard in making determinations

• 55. References in relation to contracts entered into before the relevant date

• PART 10 Restrictions on disclosing information

• 56. Information specified for the purposes of paragraph 1(1)(c) of Schedule 5

• PART 11 Qualifying sub-contracts

• 57. Interpretation

• 58. Requirements for qualifying sub-contracts

• 59. Competitive process for single sub-contracts

• 60. Competitive process for sub-contracts made under a framework agreement

• 61. Assessing whether a contract would be a qualifying sub-contract

• 62. Appeal against assessment

• 63. Cessation of application to qualifying sub-contracts

• 64. Modifications of Part 2 of the Act

• 65. Modifications of these Regulations

• 66. Price adjustments for qualifying sub-contracts

• SCHEDULE Re-determination of contract price

• PART 1 Introductory

• PART 2 Single pricing amendment to a qualifying defence contract

• PART 3 Multiple pricing amendments to a qualifying defence contract