Single Source Regulations Office

We are an independent arms length body, whose principal statutory aims are to ensure that good value for money is obtained for the UK taxpayer in Ministry of Defence expenditure on qualifying defence contracts, and that single source suppliers are paid a fair and reasonable price under those contracts. The Single Source Procurement Regime came into force in December 2014, following Parliamentary approval of the regulations relating to the Defence Reform Act 2014. We are responsible for: • keeping the Single Source Contract Regulations and Part 2 of the Defence Reform Act 2014 under review; • reviewing the standard rates used to determine the profit rate in pricing single source contracts, publishing the review and making an annual recommendation to the Secretary of State for Defence on whether the rate should be adjusted; • publishing statutory guidance on allowable costs under qualifying defence contracts (QDC) and on the defined pricing structure (DPS); • publishing reporting templates that provide statutory guidance; • giving opinions and making determinations, and publishing statutory guidance on the determination of penalty amounts to be used by the MOD in issuing penalty notices; • acting as the appeal body for civil penalties and other determinations; and • providing analysis on behalf of the Secretary of State for Defence, including comparative benchmarks.