Guidance on the baseline profit rate and its adjustment (version 8.2)
Published on 14 March 2025
Details The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent four-step process which helps to ensure that value for money is obtained for taxpayers on qualifying contracts and that contractors are paid a fair and reasonable price under those contracts. This guidance explains how to apply […]
Guidance on the baseline profit rate and its adjustment (version 8.1)
Published on 10 October 2024
Details The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent process that ensures value for money and fair prices are obtained. Taking effect in April 2024, legislation and regulations simplified the steps in this process from six to four. The four-step process relates to contracts that […]
Guidance on the baseline profit rate and its adjustment (version 8)
Published on 24 January 2024
Details The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent process that ensures that value for money and fair prices are obtained. New legislation and regulations have simplified the steps in this process from six to four. The four step process relates to contracts that apply […]
Guidance on the baseline profit rate and its adjustment (version 7.3)
Published on 16 March 2023
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract (QDC) or qualifying sub-contract (QSC). The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have […]
Guidance on the baseline profit rate and its adjustment (version 7.2)
Published on 1 March 2022
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract (QDC) or qualifying sub-contract (QSC). The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have […]
Guidance on the baseline profit rate and its adjustment (version 7.1)
Published on 5 August 2021
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract (QDC) or qualifying sub-contract (QSC). The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have […]
Guidance on the baseline profit rate and its adjustment (version 7)
Published on 15 March 2021
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have regard to […]
Guidance on the baseline profit rate and its adjustment (version 6)
Published on 16 March 2020
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have regard to […]
Guidance on the baseline profit rate and its adjustment (version 5)
Published on 18 March 2019
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have regard to […]
Guidance on the baseline profit rate and its adjustment 2018
Published on 15 March 2018
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and contractors and the MOD must have regard to it, as specified […]