Full determination: SSRO determination on the extent to which a contractor’s particular unanticipated costs are allowable costs under a firm-priced qualifying defence contract
Determination made: 29 September 2023 The Single Source Regulations Office (SSRO) is an executive non-departmental public body, sponsored by the Ministry of Defence. It plays a key role in supporting the regulatory framework for single source defence contracts established by Part 2 of the Defence Reform Act 2014 and the Single Source Contract Regulations 2014. […]
SSRO determination on the extent to which a contractor’s particular unanticipated costs are allowable costs under a firm-priced qualifying defence contract
In September 2023, the SSRO made a determination on a matter referred to it by a defence contractor. This determination was made using a power given to the SSRO by the Defence Reform Act 2014. The referral concerned the extent to which specific staff and storage costs incurred by the contractor in relation to the […]
Summary: SSRO determination on the extent to which a contractor’s particular unanticipated costs are allowable costs under a firm-priced qualifying defence contract
Determination made: 29 September 2023 1. Introduction The regulatory framework for single source defence contracts specifies how contracts that meet the requirements for being qualifying defence contracts (‘QDCs’) must be priced. The price of a QDC is comprised of allowable costs (determined in accordance with one of six regulated pricing methods) and profit (a percentage mark-up on […]
SSRO determination on the extent to which sales and marketing costs in a qualifying defence contract are Allowable and the appropriate cost risk adjustment
The SSRO was referred a request for a determination on two matters by Rolls-Royce regarding its contract with the MOD for the availability of Adour engines, which power Hawk jet aircraft. The contract was awarded on the condition that the SSRO’s verdict was sought on these two issues: the extent to which sales and marketing […]
SSRO determination on the extent to which labour costs in a qualifying defence contract are Allowable
This document sets out an anonymised account of the SSRO’s determination, which is intended to aid understanding of how the regulatory framework is being applied without disclosing sensitive information. The process of anonymisation has involved removing some of the detailed facts relied upon in making the determination. As the determination was made having regard to […]
SSRO determination on the treatment of Research and Development Expenditure Credit when determining allowable costs under a qualifying defence contract
In accordance with our procedures for referrals, the SSRO has published an anonymised account of its determination on the treatment of Research and Development Expenditure Credit (RDEC, a form of tax relief) when determining the extent to which research and development (R&D) costs are allowable costs under the referred qualifying defence contract. The determination was made […]