Contract profit rate

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 […]

Details The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent process that ensures value for money and fair prices are obtained. Taking effect in April 2024, legislation and regulations simplified the steps in this process from six to four. The four-step process relates to contracts that […]

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 baseline profit rate and capital servicing rates continue to be the most significant determinants of contract profit rates and help ensure pace and agility in the way that single source contracts can be priced. The Secretary of State for Defence has now announced his determination of the rates for this year and we welcome […]