Single source statutory guidance on adjustments to the baseline profit rate 2015

Section 18 of the Defence Reform Act provides for the SSRO to issue guidance in relation to the following steps set out in Section 17(2):

• cost risk adjustment
• profit on cost once
• SSRO funding adjustment
• incentive adjustment
• capital servicing adjustment

The overarching principle of this guidance is to ensure:

a) that good value for money is obtained in government expenditure on qualifying defence contracts

b) that persons (other than the Secretary of State) who are parties to qualifying defence contracts are paid a fair and reasonable price

Once published, it will be a legal requirement for contractors and the MOD to have regard to this guidance.

Feedback

Please email feedback to: profitadjustments@singlesourceregulationsoffice.gov.uk