- Latest available (Revised)
- Original (As enacted)
Defence Reform Act 2014
You are here:
What Version
Advanced Features
- Show Geographical Extent(e.g. England, Wales, Scotland and Northern Ireland)
- Show Timeline of Changes
Opening Options
More Resources
Changes over time for: Section 18
Alternative versions:
Changes to legislation:
Defence Reform Act 2014, Section 18 is up to date with all changes known to be in force on or before 26 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes to Legislation
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.
Changes and effects yet to be applied to the whole Act associated Parts and Chapters:
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
- s. 25(8A) inserted by 2023 c. 54 Sch. 10 para. 13(3)
18Contract profit rate: supplementaryU.K.
This section has no associated Explanatory Notes
(1)The Secretary of State or an authorised person, and the primary contractor, must have regard to guidance issued by the SSRO in relation to any of the steps set out in section 17(2).
(2)Single source contract regulations may—
(a)disapply the requirement to take any or all of steps 2 to [F14] in section 17(2) in relation to a qualifying defence contract the value of which is less than the amount specified for the purposes of this paragraph [F2, or a component of such a contract];
(b)provide for any or all of those steps to apply in relation to such a contract [F3or component] with modifications set out in the regulations;
(c)where the Secretary of State is a party to a group of qualifying defence contracts with the same primary contractor, provide for section 17(2) to apply in relation to those contracts [F4or components of those contracts]—
(i)taken together or individually, and
(ii)with such modifications as may be set out in the regulations.
(3)Single source contract regulations may provide that the SSRO—
[F5(a)may, on an application by a person within subsection (4), determine whether—
(i)the baseline profit rate identified under step 1 in section 17(2) is correct in relation to a qualifying defence contract or a component of such a contract;
(ii)an adjustment agreed under any of steps 2 to 4 in section 17(2) is appropriate;
(iii)an adjustment agreed under step 3 in section 17(2) is in accordance with the regulations];
(b)may, in consequence of a determination by virtue of paragraph (a) that the amount of such an adjustment is not appropriate, determine that the price payable under the contract is to be adjusted by an amount specified by the SSRO.
(4)The following persons are within this subsection—
(a)the Secretary of State,
(b)an authorised person, and
(c)the primary contractor.
Textual Amendments
F1Word in s. 18(2)(a) substituted (19.1.2024) by Procurement Act 2023 (c. 54), s. 127(2), Sch. 10 para. 10(2)(a); S.I. 2024/61, reg. 2(1)(b)(iv) (with reg. 3)
F2Words in s. 18(2)(a) inserted (19.1.2024) by Procurement Act 2023 (c. 54), s. 127(2), Sch. 10 para. 10(2)(b); S.I. 2024/61, reg. 2(1)(b)(iv) (with reg. 3)
F3Words in s. 18(2)(b) inserted (19.1.2024) by Procurement Act 2023 (c. 54), s. 127(2), Sch. 10 para. 10(3); S.I. 2024/61, reg. 2(1)(b)(iv) (with reg. 3)
F4Words in s. 18(2)(c) inserted (19.1.2024) by Procurement Act 2023 (c. 54), s. 127(2), Sch. 10 para. 10(4); S.I. 2024/61, reg. 2(1)(b)(iv) (with reg. 3)
F5S. 18(3)(a) substituted (19.1.2024) by Procurement Act 2023 (c. 54), s. 127(2), Sch. 10 para. 10(5); S.I. 2024/61, reg. 2(1)(b)(iv) (with reg. 3)
Commencement Information
I1S. 18 in force at 14.7.2014 for specified purposes by S.I. 2014/1751, art. 4(e)
I2S. 18 in force at 5.12.2014 in so far as not already in force by S.I. 2014/3162, art. 3(a)
Options/Help
Print Options
PrintThe Whole Act
PrintThe Whole Part
PrintThe Whole Cross Heading
PrintThis Section only
Legislation is available in different versions:
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
See additional information alongside the content
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Opening Options
Different options to open legislation in order to view more content on screen at once
Explanatory Notes
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
More Resources
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
- the original print PDF of the as enacted version that was used for the print copy
- lists of changes made by and/or affecting this legislation item
- confers power and blanket amendment details
- all formats of all associated documents
- correction slips
- links to related legislation and further information resources
Timeline of Changes
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
More Resources
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
- the original print PDF of the as enacted version that was used for the print copy
- correction slips
Click 'View More' or select 'More Resources' tab for additional information including:
- lists of changes made by and/or affecting this legislation item
- confers power and blanket amendment details
- all formats of all associated documents
- links to related legislation and further information resources
All content is available under the Open Government Licence v3.0 except where otherwise stated. This site additionally contains content derived from EUR-Lex, reused under the terms of the Commission Decision 2011/833/EU on the reuse of documents from the EU institutions. For more information see the EUR-Lex public statement on re-use.