Defence Reform Bill receives Royal Assent
Throughout the process, defence trade organisation ADS Group has worked closely with Whitehall and Westminster decision-makers to ensure key concerns raised by industry were scrutinised as the Bill progressed through Parliament.
Paul Everitt (right), chief executive of defence trade organisation, ADS Group, commented: "Working with our Members, ADS has made sure that key industry priorities, including protecting SMEs, ensuring the independence of the regulator and enhancing certainty over contracts, were addressed in the final legislation. In doing so, the Act provides the reform sought by the MoD, delivers better value for the taxpayer, while also offering a more stable and predictable environment for the UK's world-leading defence industry. ADS will continue to work closely and constructively with Government and industry to ensure a smooth implementation process as we transition to the new arrangements.”
Working with parliamentarians ADS secured solutions to five key issues:
- Protecting SMEs from burdensome regulation by securing an exemption from the new single source pricing framework. The regulations will now only apply to contracts over £5m, effectively exempting SMEs from the new framework.
- Ensured the independence of the Single Source Regulations Office (SSRO) with industry oversight of the appointment of the Chair.
- Enhancing suppliers’ and investors’ certainty over contract price by implementing a time limit in which MOD can challenge a single source contract price and definition of the grounds of such challenge.
- Ensuring a universal application of the single source pricing regulations so that domestic and international suppliers are competing on a level-playing field.
- Measures to protect suppliers’ Intellectual Property and commercially sensitive information, ensuring a more stable defence procurement landscape.
Now that the Bill has been enacted, ADS will continue to work closely with Members and the MoD to ensure that the implementation process is smooth, and that the interests of Members’ continue to be represented.
