Join our Defence Single Source Training Workshop where we will explain what a Qualifying Defence Contract / Subcontract is and how it must be priced, costed and reported. The workshop will set out the risks within the regime and the commercial landscape.
Single source defence contracts for the UK are regulated by law within a Single Source Procurement Framework established by Part 2 of the Defence Reform Act 2014. 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. Understanding the rules is therefore vital to ensure a price is valid and will withstand scrutiny.
Benefits of Participation:
The workshop will provide you with:
- An outline of pricing, negotiating, costing, and reporting on single source contracts that are subject to the legislative framework established by the Defence Reform Act
- An awareness of the latest regulations, statutory guidance and the significant changes to the framework implemented in April 2024 and the intent of changes proposed for October 2024 by MoD
- A framework within which your company can reach decisions about pricing and reporting relevant to its internal structure and methods
Workshop Content Includes:
The Regulatory Framework:
- Applicability of the legislation
- The pricing formula, allowable costs and profit calculation
- Pricing contract changes
- Converting pre-existing contracts to qualifying contracts
- Records, MoD price investigations and access rights, confidentiality
- Reports and reporting
- SSRO - its powers and responsibilities
- Compliance
- Current issues relating to the Act, Regulations and statutory guidance, and prospective changes
- Treatment of contracts outside the Act
The Pricing Formula:
- Pricing methodologies including the new ‘Alternative’ methods
- Review of the latest allowable cost rules
- Review of contract profit rate and adjustments
- Review of cost, contingency and risk estimation requirements and implications for suppliers
- Legislative changes planned by Secretary of State for October 2024
- Pricing of sub-contracts and changes
- Potential for lower value contracts and contracts for indirect items to become qualifying contracts
- MoD's rights to perform post award audit
Workshop Leaders:
The course is led by Tim Watkins and John Ashley
Tim is a Chartered Accountant who has 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.
John is a Chartered Accountant with substantial experience in both the private and public sectors. He was a key member of the MoD team established to develop the current single source procurement legislation and to engage with industry during ongoing consultation. Before leaving the MoD, John was the SSAT’s single source legislation compliance lead, advising MoD delivery teams and suppliers on the application of the framework and playing a central role in developing and enacting improvements to the regime.
