Baseline profit rate methodology March 2025
Under the Defence Reform Act 2014 (the Act), the SSRO is required annually to review the figures used to determine the contract profit rate for pricing qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs). Section 19(2) of the Act requires that, for each financial year, the SSRO must provide the Secretary of State with its […]
Baseline Profit Rate assessment: Proposed methodology updates
Consultation description As part of determining the baseline profit rate (BPR) for non-competitive qualifying defence contracts and subcontracts, we identify benchmark comparable company profits using criteria stated in the published BPR methodology. Keeping this methodology accurate, up to date and reflective of appropriate comparators to ensure a fair and reasonable profit and contract price is […]