Part 8: Compliance

(1)

The requirements specified for the purposes of section 31(3)(a)(i) (failure to comply with duty to keep accounting and other records) are—

1. to keep relevant records in accordance with regulation 20;
2. to permit the Secretary of State to examine relevant records in accordance with regulation 21(1) to (3);
3. to make available a copy required under regulation 21(4);
4. to provide further information or explanation when requested to do so under regulation 21(5).

(2)

The requirements specified for the purposes of section 31(3)(a)(ii) (failure to comply with reporting requirements) are those imposed by Part 5 (reports on qualifying defence contracts) and Part 6 (reports on overheads and forward planning etc).

(3)

The reports specified for the purposes of section 31(3)(b) (misleading reports) are those required by Part 5 (reports on qualifying defence contracts).

(1)

The periods specified for the purposes of—

1. section 31(5) (time limits for giving compliance notice), and
2. section 32(5) (time limits for giving penalty notice) in the case set out in section 32(3) (contravention which cannot be remedied),

are those set out in paragraph (2).

(2)

The periods are—

1. in the case of a contravention within section 31(3)(a)(i) (failure to comply with duty to keep accounting and other records)—
1. six months after the date on which the requirement to keep relevant records ends, or
2. two years after the contract completion date,

whichever ends earlier;

2. in the case of a contravention within section 31(3)(a)(ii) (failure to comply with reporting requirements), six months after the date the report is due;
3. in the case of a contravention within section 31(3)(b) (misleading reports) or 31(3)(c) (duty to report relevant events, circumstances and information)—
1. one year after the date the Secretary of State becomes aware of the contravention, or
2. two years after the contract completion date,

whichever ends earlier;

4. subject to paragraph (e), in the case of a contravention within section 31(3)(d), (e) or (f) (assessment of a proposed sub-contract)—
1. one year after the date the Secretary of State becomes aware of the contravention, or
2. two years after the contract completion date of the contract to which the proposed sub-contract relates,

whichever ends earlier;

5. in the case of a contravention within section 31(3)(d), (e) or (f) (assessment of a proposed sub-contract) where the proposed sub-contract is required to enable the performance of more than one contract (regulation 58(3)(b) or (4)(b))—
1. one year after the date the Secretary of State becomes aware of the contravention, or
2. two years after the first contract completion date of any of those contracts,

whichever ends earlier;

(3)

The period specified for the purposes of section 32(5) (time limit for giving penalty notice) in the case set out in section 32(2) (failure to take steps specified in a compliance notice) is three months after the last day of the period within which the compliance notice specified that the specified steps must be taken.

SSRO guidance: See Annex A of the SSRO's penalty's guidance for easier to read tables of the different maximum penalty amounts that apply in different circumstances.

(1)

In the following Table, each entry in the second column shows the amount specified for the purposes of section 33(1) (maximum penalty) for the following contraventions, where the relevant amount falls within the range shown in the corresponding entry in the first column—

1. a contravention within section 31(3)(a)(i) (failure to comply with duty to keep accounting and other records); or
2. a contravention within section 31(3)(a)(ii) (failure to comply with reporting requirements), other than the ones mentioned in paragraph (2)(a);

but this is subject to paragraph (3).

(2)

In the following Table, each entry in the third column shows the amount specified for the purposes of section 33(1) (maximum penalty) for the following contraventions, where the relevant amount falls within the range shown in the corresponding entry in the first column, for—

1. failing to comply with the requirements in—
1. regulation 23 (contract pricing statement); or
2. regulation 38 (estimated rates agreement pricing statement); or
2. a contravention within section 31(3)(d), (e) or (f) (assessment of proposed sub-contracts);

but this is subject to paragraph (3).

(3)

In a case where—

1. the Secretary of State gives a person a penalty notice in respect of a contravention within section 31(3)(a)(ii) (failure to comply with reporting requirements), and
2. within the 12 months immediately preceding the date on which the Secretary of State gives the person that penalty notice, at least five other penalty notices for contraventions within section 31(3)(a)(ii) have been given to the person (or any person or persons associated with that person),

the amount specified for the purposes of section 33(1) (maximum penalty) is the amount prescribed by paragraph (1) or (2) (as the case may be) for that contravention, plus 20% of that amount.

(4)

Any penalty notice which has been cancelled by the SSRO shall be disregarded for the purposes of paragraph (3).

(5)

In this regulation, “the relevant amount” means—

1. in the case of either—
1. a contravention within section 31(3)(a)(i) by a person which is the designated person for the purpose of Part 6, or
2. a contravention within section 31(3)(a)(ii) which consists in a failure to comply with a requirement imposed by Part 6,

the total [^F1of all the contract prices for each qualifying defence contract and qualifying sub-contract] to which the person who has been given the penalty notice, or any person associated with that person, is party;

2. in all other cases, the [^F2 price] of the qualifying defence contract.