Contract profit rate

The Secretary of State for Defence has confirmed the rates that will apply for 2026/27, in line with the SSRO’s assessment. Reflecting wider market trends, the baseline profit rate has increased to 9.10 percent for 2026/27, up from last year’s rate of 8.56 percent. The capital servicing rates have risen by an average of 0.65 […]

Recommendation factsheet 2025 Ancillary Services factsheet 2025 Construction factsheet 2025 Information Technology Services factsheet 2025 Key questions and answers regarding the SSRO’s single source baseline profit rate and capital servicing rates methodology The Secretary of State for Defence has announced his determination of the rates to be used for 2025/26, and we are delighted that […]

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 those […]

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 […]