The SSRO’s approach to overseeing the regulatory framework for single source defence contracts is grounded in the principle of being a responsive and supportive regulator.
By providing clear and accessible guidance on the regulatory framework, the SSRO helps the parties to non-competitive contracts to understand what is expected of them and safeguards value for money for the taxpayer by ensuring transparency and ensures fair and reasonable prices for contractors across qualifying contracts.
Our qualifying sub‑contract (QSC) guidance plays an important role in helping suppliers – including small and medium‑sized enterprises (SMEs) – navigate the regulatory framework with confidence.
The SSRO’s recent teach-in (4 February 2026) on QSC guidance was a successful event, with over 160 stakeholders participating, reflecting strong interest in the single source regulatory framework.
Attendees included organisations with contracts already subject to the regulatory framework, as well as many who may in the future.
David Pottruff, the SSRO’s Principal Regulatory Investigations & Policy Manager, who led the teach-in, reflected:
“We’re delighted with the level of engagement at the session and grateful to those who attended for their contributions. The questions and feedback from attendees will be invaluable as we continue to improve our guidance. My SSRO colleagues and I are looking forward to delivering our programme of teach-ins during 2026, supporting stakeholders to develop their understanding of the regulatory framework for non-competitive defence contracting.”
During the teach-in, the SSRO team provided a comprehensive overview of the QSC guidance used for single source contracts. Presenters discussed:
- How to assess whether a sub-contract qualifies as a QSC and who is responsible for making that assessment.
- The required notifications to the MOD and SSRO once a QSC is identified and the process by which a prospective sub-contractor can appeal against a QSC assessment if they believe it’s been made in error.
- Pricing rules for QSCs – such as how allowable costs and contract profit rates are determined.
- The obligations for record-keeping and statutory reporting by sub-contractors under QSCs.
- What happens in cases of non-compliance with statutory requirements.
As a follow-up, the SSRO has published the presentation slides used at the teach-in. A summary of the responses provided to questions raised during the session will be published shortly.
This QSC teach-in was the first of four such training sessions the SSRO has planned for 2026, with further information on the next teach-in in April to be announced soon.
The SSRO’s teach-in programme is informed by feedback from the MOD and industry contractors and by insights from the SSRO’s wider work, highlighting where additional support to apply the regulatory framework would be helpful.
