The Single Source Contract Regulations 2014

Interpretation U.K.

2.—(1) In these Regulations—

[F1 “the Act” means the Defence Reform Act 2014, and references to sections are to sections of that Act;]

“business unit” means either—

(a)

a unit—

(i)

which carries on any activities for the purposes of an undertaking; and

(ii)

for which separate financial accounting statements are produced; or

(b)

an undertaking, or group of two or more undertakings, for which a single set of financial accounting statements is produced which is separate from the financial accounting statements of each of those undertakings;

“contract completion date” has the meaning given by regulation 4;

[F2 “contract price”, in relation to a qualifying defence contract, means—

(a)

the price payable under the contract to the primary contractor as determined in accordance with regulation 10, or

(b)

if the contract is amended in a way that affects the price payable under it, the price payable under the contract to the primary contractor as determined or, as the case may be, last determined in accordance with the Schedule;]

“cost recovery base” means the unit of measure to which a cost recovery rate is applied in order to calculate a cost under a contract;

“cost recovery rate” means a rate calculated for a business unit that is used to determine a cost payable under a contract, being a rate per unit of a cost recovery base that is multiplied by the quantum of that cost recovery base to determine the cost;

“deliverable” means any goods, works or services which—

(a)

are provided under a contract; and

(b)

can be described using an output metric;

“further group sub-contract” has the meaning given by regulation 12(6);

“group sub-contract” has the meaning given by regulation 12(5);

“output metric” means a quantifiable description of any goods, works or services (including a number, weight, dimension, time or physical capability, but not including a monetary value);

“parent undertaking” has the meaning given by section 1162 of the Companies Act 2006 M1 ;

“regulated pricing method” means one of the six pricing methods described in paragraphs (4), (5), (6), (7) and (8), (9) and (10), or (11) of regulation 10;

“SME” has the meaning given in Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises M2 ;

“TCIF adjustment” means an adjustment made under section 16(1)(b);

“the time of agreement” means—

(a)

in the case of a contract which is a qualifying defence contract by virtue of section 14(3), or a qualifying sub-contract—

(i)

the date the contract is entered into; or

(ii)

if the price payable under the contract is re-determined [F3 in accordance with the Schedule], the date of that re-determination;

(b)

in the case of a contract which is a qualifying defence contract by virtue of section 14(4) or (5)—

(i)

the date of the amendment mentioned in section 14(4)(c) or (5)(b); or

(ii)

if the price payable under the contract is re-determined [F3 in accordance with the Schedule], the date of that re-determination;

“undertaking” has the meaning given by section 1161(1) of the Companies Act 2006;

“working day” means any day excluding—

(a)

Saturday, Sunday, Christmas Day, Good Friday or a bank holiday under the Banking and Financial Dealings Act 1971 M3 ; and

(b)

where a person gives the Secretary of State and the SSRO no less than 30 days' written notice of its intention to treat a day as a holiday, that day.

(2) A reference to a report provided under Part 5 includes a contract pricing statement (regulation 23), a contract reporting plan (regulation 24), a contract costs statement (regulation 29), and information provided under regulation 30 (on-demand contract report).

[F4 (3) A reference to a report provided under Part 6 includes an estimated rates agreement pricing statement under regulation 38.]

Textual Amendments

F1 Words in reg. 2(1) substituted (1.4.2019) by The Single Source Contract (Amendment) (No. 2) Regulations 2018 (S.I. 2018/1350), regs. 1(3), 7(a)

F2 Words in reg. 2(1) substituted (1.4.2019) by The Single Source Contract (Amendment) (No. 2) Regulations 2018 (S.I. 2018/1350), regs. 1(3), 7(b)

F3 Words in reg. 2(1) substituted (1.4.2019) by The Single Source Contract (Amendment) (No. 2) Regulations 2018 (S.I. 2018/1350), regs. 1(3), 7(c)

F4 Reg. 2(3) inserted (1.9.2019) by The Single Source Contract (Amendment) Regulations 2019 (S.I. 2019/1106), regs. 1, 3

Marginal Citations

M1 2006 c.46.

M2 O.J. L 124, p. 36-41, of 20 May 2003.

M3 1971 c. 80.