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Defence

SSRO issues single source contracts regulatory guidance for QSCs

Following consultation with stakeholders, the SSRO has published new guidance on how the regulatory framework for single source defence contracts applies to qualifying sub-contracts (QSCs).

Image courtesy SSRO

QSCs account for around one in six of all qualifying contracts under the regulatory framework and have a combined value of more than £8.2 billion.

The new guidance summarises the relevant parts of the regulatory framework and provides signposting to existing SSRO guidance, for example, on pricing and reporting.

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The SSRO’s Chief Regulatory Officer, Jo Watts, said: “This new guidance follows a request from industry for a consolidated summary of the complex regulations related to QSCs. The guidance has been informed by the questions we are commonly asked about QSCs and takes account of the feedback received from stakeholders during our consultation. 

"Based on the positive feedback we had from stakeholders, we are confident the new guidance will help the MOD, contractors and sub-contractors better understand their respective rights and obligations in relation to QSCs.”

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The SSRO has also published a summary of the feedback it received during its consultation and how it has responded to this in preparing the new guidance.

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