Exclusively provided by ADS, this workshop will explore the changes to the legislative framework that the Secretary of State is planning on implementing during 2018 and 2019.

MOD’s ability to implement in full the recommendations for change it received from the Single Source Regulation Office, and Industry, has been constrained by political considerations and the availability of Parliamentary time. Nevertheless, it is planning on bringing some significant changes.

Benefits of Attending

  • Gain an understanding of pricing, negotiating, costing and reporting on single source contracts awarded by MOD that are subject to the Defence Reform Act and the single source contract regulations.
  • Opportunity to understand the updated regulations and statutory guidance.
  • Learn the actions a supplier should consider taking as a consequence of likely 2018 and 2019 changes to the regulatory framework.

Workshop Content Includes

  • The Regulatory Framework
  • Current issues relating to the Act, Regulations and statutory guidance
  • Review of when legislation applies
  • The pricing formula
  • Engagement on sub-contractor pricing matters
  • Converting pre-existing contracts to qualifying contracts and what exposure to the legislative framework might mean
  • SSRO engagement, references, opinions and their questions

The Pricing Formula

  • Review of the allowable cost rules, including changes made in the February 2018 issue of the Allowable Cost Guidance
  • Review of contract profit rate risk and incentive adjustments
  • Exploration of SSRO’s approach to setting baseline profit rates and implications for suppliers
  • Review of cost, contingency and risk estimation requirements and implications for suppliers
  • Legislative changes planned by Secretary of State during 2018 and 2019
  • Engagement in 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
  • Rules for profits on single source inter-group procurement