The Single Source Regulations Office (SSRO) is an executive non-departmental public body, sponsored by the Ministry of Defence (MOD).
We oversee the regulatory framework for non-competitive defence contracts, which are certain contracts awarded in the absence of a competitive process. This non-competitive / single source route is used by the MOD in a number of circumstances when there is only one potential supplier (for example building nuclear submarines) or when equipment or a service is needed urgently (for example to supply munitions for operational campaigns). Contracts which become subject to the regulatory framework are referred to as qualifying defence contracts (QDC) or qualifying sub-contracts (QSC).
The framework places controls on the pricing of qualifying contracts and requires transparency on the part of defence contractors. It was put in place to ensure value for money in public expenditure and fair prices for industry in relation to the £9bn per year that the MOD spends on non-competitive defence procurement.
The SSRO’s role includes:
- ensuring value for money in public expenditure while ensuring fair prices are paid to industry;
- assisting those subject to the regulatory framework in understanding and applying the legislation by issuing statutory guidance in relation to certain aspects of it;
- giving opinions and making determinations on specified matters relating to qualifying contracts or proposed qualifying contracts, which may clarify how the legislation is to be interpreted or applied; and
- keeping under review the provision made by the relevant legislation and, as it considers appropriate, recommending changes to the Secretary of State.
Our statutory functions
The SSRO’s functions include giving guidance on each of these aspects of the regulatory framework. Our guidance plays an important role in supporting the MOD and contractors to apply the regulatory framework and realise the benefits that the Act and Regulations seek to achieve.
| Guidance | Publishing documents to: – give clarity on which costs can be charged in a contract: Allowable Costs guidance. – be used when parties determine the profit rate in a qualifying contract: Contract Profit Rate guidance. – help contractors submit their statutory reporting requirements and help them to use our Defence Contract Analysis and Reporting System (DefCARS): DefCARS and Reporting guidance. – show where the Secretary of State can issue penalties on a contractor for failing to comply with their obligations under the Act and Regulations: penalties guidance. |
| Referrals | Where there is a dispute between parties in relation to a qualifying contract, we can be asked to help resolve the matter by issuing an opinion or giving a determination. |
| Contract Profit Rate | Recommending the appropriate baseline profit rate and capital servicing rates for use in calculating contract profit rates annually to the Secretary of State. |
| Review | Keeping the regulatory framework under review and making recommendations for changes to the Secretary of State. |
| Compliance | Keeping under review the extent to which reporting requirements are being complied with. |
| Analysis | Analysing reported data on request for the Secretary of State. |
| Records | Keeping an up-to-date record of qualifying contracts and receiving statutory reports from defence contractors under the regulatory framework. |
To read more about how we support the government in delivering the optimal operation of the regulatory framework, and ensuring a strong defence sector, take a look at this two-page introductory briefing.
To contact the SSRO with a query, call 020 3771 4785 (9am to 5pm Monday to Friday) or email helpdesk@ssro.gov.uk
Legislation
The regulatory framework was established by:
- Part 2 of the Defence Reform Act 2014; and
- the Single Source Contract Regulations 2014.
Together, this legislation governs the entire arrangement for qualifying contracts, including how they are to be priced and the reporting obligations that apply.
Our structure
The SSRO is a small organisation of approximately 40 people. We have a Chair and a Board of Non-Executive Members, a Chief Executive Officer and a Chief Regulatory Officer. The senior leadership team leads on our operational and corporate activities.
Corporate aims
Four areas of strategic focus are incorporated into our work programme and our engagement with stakeholders.
- Relevance: Our work will be focused on the most important strategic issues. We will provide insights, guidance and information that is useful to industry and the MOD and contributes to meaningful improvements in defence procurement.
- Visibility: We will communicate our work, and the value we bring to the sector and defence procurement outcomes.
- Accessibility: We will ensure that our services and guidance are easy to engage with.
- Trust: We will build our stakeholders’ confidence in the SSRO through the skills, knowledge and experience we bring to bear.
To contact the SSRO with a query, call 020 3771 4785 (9am to 5pm Monday to Friday) or email helpdesk@ssro.gov.uk
Guidance documents
Reporting guidance and DefCARS