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Price, costs and profit

SSRO guidance on price, profit and costs

Published Monday 24 June 2024
Updated Wednesday 30 July 2025

The regulatory framework specifies how contracts that meet the requirements for being qualifying defence contracts (QDCs) or qualifying sub-contracts (QSCs) must be priced. The SSRO’s functions include giving guidance on each of this aspect of the regulatory framework and providing an annual assessment to the Secretary of State on the appropriate rates to use in determining contract profit. Our guidance plays an important role in supporting MOD personnel and contractors to apply the regulatory framework and realise the benefits the Act and Regulations seek to achieve.

The table below sets out where to access the information you may need on each topic.

TopicLink
Determining whether a contractor’s costs meet the requirements to be allowable costs under a QDC or QSCGuidance on Allowable Costs
Determining the contract profit rate for a QDC or QSCGuidance on profit rate
Determining the price of a contract using an alternative pricing methodGuidance on the alternative pricing of contracts
Guidance on the Final Price Adjustment, when it should be used and the methodology for calculating the adjustmentGuidance on the Final Price Adjustment

If you cannot find the information you are looking for or would like any further information, please contact the SSRO helpdesk by email at helpdesk@ssro.gov.uk or call 020 3771 4785.

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