FinExperts offers consultancy and training to companies bidding and performing UK MoD defence contracts

UK laws that govern pricing and reporting of qualifying single source defence contracts are now in place

On 17th December 2014 the single source pricing regulations and Part 2 of the Defence Reform Act came into force.

Significant changes to the legislation come into effect on 1 April 2024, and more are exepected in October 2024

The Single Source Regulatory Office (SSRO) issues supporting statutory guidance. Statutory guidance is required to be followed unless there are sound reasons to set it aside. Contractors need to understand, train, and make their governance and other procedures compliant. Statutory guidance issued by the SSRO covers Allowable Costs; Reporting user guides; Defined Pricing Structure; Calculating the Contract Profit Rate; and Penalties. Part 2 (Single Source Contracts) of the Defence Reform Act contains 51 schedules; the supporting regulations are contained in 11 Parts and comprise some 65 regulations. The Regulations have been updated by subsequent Statutory Instruments (and the changes are ongoing). The law has significant and complex impacts to pricing, government access rights and reporting arrangements of Single Source UK Ministry of Defence contracts and sub-contracts. The Regulations and statutory guidance apply, irrespective of location, to single source prime contractors and their supply chain sub-contractors.

Pricing of new contracts which are not subject to regulations

The 810 series DEFCONs have been introduced, some DEFCONs retired, and some existing DEFCONs have been modified. These DEFCONs should not be regarded as fit for the majority of contracts in the majority of circumstances. Each should be fully considered and negotiated accordingly.

Compliance with regulations and other requirements over pricing, contract changes, cost accounting and reporting is essential to business performance. FinExperts are there to support your company though provision of consultancy and training.

Company specific courses are offered in addition to those of a more general nature which are run in partnership with A|D|S.

Contact details:

Tim Watkins: tim.watkins@finexperts.co.uk                

07891 582562      

01935 862863