Introduction from John Russell, Chief Executive, SSRO
SSRO publications
It remains the SSRO’s duty in carrying out our functions to aim to secure value for money for the taxpayer and fair and reasonable prices for suppliers on single source defence contracts. We pursue these twin aims by providing independent advice, guidance, and robust analysis.
The SSRO is currently consulting on guidance to be used when contract prices are amended – for example if the scope of work is increased or reduced. We’d really welcome your views.
We have published the following guidance updates and insights into the regulatory framework over the past few months.
| Publication | Summary |
| Consultation on Contract Pricing Amendments (October) | This consultation on proposed guidance is designed to help contractors and the MOD fairly and efficiently re-determine contract prices when contracts are amended (for example, if the scope of work is increased or reduced). This consultation closes at 5:00pm on 9 January 2026. We plan to publish the final guidance in early 2026. |
| Baseline Profit Rate (BPR) methodology review – consultation outcome (October) | In June we consulted on the methodology, seeking to keep it up-to-date and representative. The outcome document details our decisions. No immediate changes will be made to the BPR methodology for the 2026/27 profit rate assessment, meaning the next year’s baseline rate will be calculated using the existing approach. We thank all stakeholders who contributed to the consultation. |
| Stakeholder Engagement Strategy (November) | The Stakeholder Engagement Strategy complements our Corporate Plan and develops our stakeholder engagement to ensure that we will be visible and accessible, with a clear and coordinated offer of engagement and support to the primary users of the regulatory framework. The Strategy has been refreshed to take account of what stakeholders told us during the stakeholder survey, which ran earlier in 2025. Thanks to all stakeholders who took part in the survey. |
| International approaches to single source defence contracting (September) | To coincide with the SSRO hosting the International Industrial Cost Analysis & Verification Community of Practice (ICOP) meeting in London, we published two papers examining how ally nations manage single source defence procurement. This research (developed with input from our ICOP partners) aims to further develop information-sharing on best practices in non-competitive contracting. This comparative research enhances our understanding of alternative practices which supports the development of evidence-based recommendations to the Secretary of State for changes to the regulatory framework. |
| Annual Compliance Bulletin 2024/25 (July) | The yearly Compliance Bulletin summarises how well defence contractors and the MOD met their reporting requirements in the period 1 May 2024 – 30 April 2025. The SSRO continues to support compliance by providing guidance, workshops, and helpdesk support, and by working with MOD and industry to address the areas identified for improvement. |
| Guidance on Qualifying Sub‑contracts (June) | New guidance to help stakeholders identify and apply the regulatory framework. Qualifying sub-contracts (QSCs) account for about 1 in 6 qualifying contracts (with a combined value of over £8.2 billion). The guidance provides a clear summary of the rules for QSCs and directs users to detailed SSRO guidance on pricing and reporting. It was developed in response to industry requests and stakeholder feedback. |
| Annual qualifying defence contract statistics 2024-25 (June) | The annual statistics bulletin contains analysis of key QDC/QSC information. We hold unique data, provided directly by contractors, in the Defence Contract Analysis and Reporting System (DefCARS). The data includes (for example) actual and projected costs and profit, contract requirements, payments, overheads and strategic capacity. The data supports the MOD in negotiating and managing contracts, as well as managing suppliers at a portfolio level. |
Engaging with stakeholders
We continue our programme of stakeholder engagement, encompassing events, meetings, and direct outreach across industry and government:
- Working with Industry and the MOD: a programme of meetings with defence contractors, trade bodies, and the MOD, including the new National Armaments Directorate Group, to ensure the regulatory framework continues to best support fast-paced procurement and innovation.
- Advice Service: Our Advice Service continues to be used by both the MOD and industry in helping them apply the regulatory framework – we have responded to requests on topics such as allowable costs, profit rate steps, the Final Price Adjustment, and the use of alternative pricing methods.
- Site visits and outreach: We have continued our on-site engagement with defence companies to gain first-hand insight into industry operations and challenges. We are keen that such exchanges and visits, as they build stronger relationships and help us tailor our guidance and support to the practical realities on the ground.
If you would like to arrange a briefing or site visit, or have feedback to share, please do get in touch (helpdesk@ssro.gov.uk or 020 3771 4785).