ADS are once again holding a Defence Commercial Workshop training session.

Single source Defence contracts for the UK are now regulated by law. The law governs how contracts are costed, what profit is allowed, how pricing mechanisms work and gives MOD significant open book access to the contractor’s data. There are penalties for non-compliance, and it is possible, for contract prices to be re-set up to two years after contract completion. Understanding the rules is therefore vital to ensure a price is valid and will withstand scrutiny.

BENEFITS OF ATTENDING

  • Understanding pricing, negotiating, costing and reporting on single source contracts that are subject to the Defence Reform Act
  • Opportunity to understand the latest regulations and statutory guidance

WORKSHOP CONTENT INCLUDES

  • The Regulatory Framework
  • Current issues relating to the Act, Regulations and statutory guidance
  • Review of when legislation applies
  • The pricing formula
  • Pricing contract changes
  • Converting pre-existing contracts to qualifying contracts
  • Records, MOD access rights, confidentiality
  • Compliance, SSAT, SSRO, its powers and responsibilities
  • Treatment of contracts outside the Act

THE PRICING FORMULA

  • Review of the latest allowable cost rules, and possible changes in the next update
  • Review of contract profit rate risk and incentive adjustments
  • Review of cost, contingency and risk estimation requirements and implications for suppliers
  • Legislative changes planned by Secretary of State during 2019 and beyond
  • Pricing of sub-contracts and changes
  • Potential for lower value contracts and contracts for indirect articles to become qualifying contracts
  • Proprietary item pricing
  • MOD’s rights to perform post award audits

Workshop leaders

The course is led by Tim Watkins and David Scillitoe.

Tim is a Chartered Accountant who has nearly 20 years’ experience in senior finance positions within major UK Defence companies. Tim was involved in the industry team working with the MOD and Review Board maintaining the Yellow Book arrangements. Tim now acts as an Industry Technical Advisor on Defence Reform Act (DRA) regime and was involved in the development of the DRA with the MOD. He now provides training and advice either directly to companies or to industry through ADS.

David is a commercial advisor, with more than 30 years’ experience in senior advisory positions within major UK defence companies. David has supported the industry team engaged with MOD on costing and pricing policy matters since 1989; acting as its commercial advisor for the Yellow Book arrangements and for the pre- and post-legislative consultations and developments on the Single Source Procurement Framework.