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Defence

SSRO reviews single source defence contracting

The Single Source Regulations Office (SSRO) has published a range of insights into single source (also known as non-competitive) defence contracting between the UK Ministry of Defence (MoD) and industry over the past year.

Image courtesy SSRO

Each year the SSRO publishes a statistics bulletin that provides facts and figures about single source defence procurement which occurs when national security requires it or where there is only one company able to produce and supply certain equipment or services to the MoD.

Companies who have a contract or subcontract - Qualifying Defence Contract (QDC] or Qualifying Sub-Contract (QSC) - subject to the single source regulatory framework, are required to submit information (reports) into a system, the Defence Contract Analysis and Reporting System (DefCARS). SSRO have then used this information to produce their annual qualifying defence contract statistics: 2023/24. They also provide updates to the statistics on a quarterly basis.

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The 2023/24 statistics show that the total estimated price of all the contracts entered into since 1st April 2015 was £102 billion. This is based on 615 contracts (active and completed).

The average estimated contract profit rate across all those contracts is 9.47%.

The statistics give a unique overview of this procurement activity, which includes analysis of:

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  • Estimated profit rates of contracts.
  • Contract prices.
  • Contract duration.
  • The types of pricing methods used in these contracts.
  • Small and Medium Enterprise involvement.
  • The estimated and actual/forecast price in completed contracts.

For the first time in these series of bulletins SSRO have included a section on ‘trends and changes’ (see page 3).

The SSRO is committed to engaging with stakeholders to improve these statistical releases and if you would like to get in touch, email: helpdesk@ssro.gov.uk

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