The Single Source Contract Regulations 2014

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Contract completion reportU.K.

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28.—(1) The primary contractor must provide a contract completion report within six months after the contract completion date of the qualifying defence contract.

(2) [F1Subject to paragraphs (3) to (7), the report] must contain the following information—

(a)a list of the key deliverables specified in the contract, with a brief description of each;

(b)the actual quantum of those deliverables, expressed using the output metrics set out in the most recent contract reporting plan;

[F2(ba)where the contract contains components, an explanation of which of those deliverables relate to which component;]

(c)an annual profile (or, if the contractor is of the view that it is not possible to express these matters in an annual profile, the total amount) of the following matters—

(i)any risk contingency element included in the allowable costs [F3and, where the contract contains components, an explanation of which parts of any risk contingency element relate to which component];

(ii)any actual risk contingency element [F4and, where the contract contains components, an explanation of which parts of any actual risk contingency element relate to which component];

(iii)the maximum amount of profit [F5for the contract and, where the contract contains components, for each component] that could have resulted from the incentive adjustment (step [F63] of regulation 11) at the time of agreement;

(iv)the actual incentive adjustment [F7for the contract and, where the contract contains components, for each component];

(v)the planned amount of profit [F8for the contract and, where the contract contains components, for each component], excluding any amount resulting from the incentive adjustment; and

(vi)the actual amount of profit [F9for the contract and, where the contract contains components, for each component], excluding any amount resulting from the incentive adjustment;

[F10(d)an annual profile of any estimated costs for the contract and, where the contract contains components, for each component at the time of agreement (split by the defined pricing structure);]

[F11(e)the total amount of non-recurring allowable costs (split by the defined pricing structure) for the contract and, where the contract contains components, for each component of the contract, except where the contract or component was priced using a contract pricing method under which costs are indistinguishable from profits;]

(f)an annual profile of the estimated amount of each cost recovery base set out in the contract reporting plan at the time of agreement;

(g)an annual profile of the actual costs (split by the defined pricing structure) [F12for the contract and, where the contract contains components, each component of the contract];

(h)an annual profile of the actual amount of each cost recovery base set out in the contract reporting plan;

(i)a quantified analysis of the causes of variance (explaining not less than 90% of the total variance) between any estimated costs used to determine the contract price [F13of the contract and, where the contract contains components, each component of the contract] and the total actual and forecast costs;

(j)a description of any event that has occurred, or circumstances which have arisen, since the contract was entered into, that have had or are likely to have a material effect in relation to the contract [F14or, where the contract contains components, a component of the contract], including—

(i)the date on which the contractor became aware of the event or circumstances;

(ii)whether the event or circumstances were covered by any contingency element of the contract price [F15for the contract or component]; and

(iii)the effect that the event or circumstances have had on the costs already incurred or forecast to be incurred under the contract [F16or component];

(k)a forecast of any TCIF adjustment or any final price adjustment (regulation 16) which the contractor expects will be made;

(l)a list of all payments exceeding £100,000 or 1% of the contract [F17price] (whichever is the greater) that have been or are expected to be made by the Secretary of State under the contract, including—

(i)the amount, or expected amount, of each payment;

(ii)the date on which each payment did, or is expected to, fall due; and

(iii)if the contract requires the payment to be made in any currency other than sterling, the currency in which the payment was or is to be made;

(m)if the contract requires payment to be made in sterling, an annual profile of all such payments made, or which the contractor expects the Secretary of State will make;

(n)if the contract requires payment to be made in any currency other than sterling, an annual profile for each such currency of all payments made, or which the contractor expects the Secretary of State will make;

(o)a list of—

(i)all delivery milestones set out in the contract;

(ii)where the contract sets an expected date for a delivery milestone to be completed, that date;

(iii)the actual or expected completion date for each delivery milestone; and

(iv)a description of the causes of any variance between the expected date for a delivery milestone set out in the contract, and the actual or expected completion date; and

[F18(oa)where the contract contains components, an explanation of which delivery milestones relate to which component;]

(p)in relation to each sub-contract which the primary contractor has entered into for the purposes of enabling it to perform its obligations under the qualifying defence contract which has or is expected to have a value of not less than £1,000,000 F19...—

(i)if the sub-contractor is a registered company, its registered name and company number, and the address of its registered office;

(ii)if the sub-contractor is not a registered company, its name;

(iii)whether the sub-contractor is associated with the primary contractor;

(iv)whether the sub-contractor is an SME;

(v)a brief description of the goods, works or services provided under the sub-contract;

(vi)the date on which the sub-contract was entered into;

(vii)the contract completion date (or, if that date is not known, the expected contract completion date);

(viii)the (actual or estimated) price payable under the sub-contract; and

(ix)if an assessment has been made under regulation 61(1) or (4), the outcome of that assessment;

[F20(q)in relation to each sub-contract which the primary contractor has entered into, or intends to enter into, and which has or is expected to have a value of not less than £15,000,000, if the primary contractor has made an assessment that the contract would not be a qualifying sub-contract—

(i)the outcome of the negative assessment;

(ii)confirmation of whether the award of the contract is not, or would not be, the result of a competitive process; and

(iii)confirmation of whether the contract enables the performance of contracts other than a qualifying defence contract or qualifying [F21sub-contract; and]]

[F22(r)a description of any component completion reports provided under regulation 27A.]

[F23(3) If the contract price for the contract or component is determined entirely in accordance with regulation 19A (commercial pricing) or regulation 19B(3) (prices determined in accordance with law) the requirements in paragraphs (2) are modified as follows in relation to the contract or component—

(a)the actual quantum of deliverables required by paragraph (2)(b) need not be expressed using the output metrics set out in the contract reporting plan;

(b)the report need not contain the information specified in paragraphs (2)(c)(i), (ii), (v) and (vi), (b) to (h), (k), (p) and (q);

(c)paragraph (2)(i) has effect as if for the words from “any estimated” to the end there were substituted “the contract price of the contract or component estimated at the time of agreement and the actual contract price of the contract or component”;

(d)paragraph (2)(j)(iii) has effect as if for “costs already incurred or forecast to be incurred under the contract or component” there were substituted “price payable, together with a quantified analysis of the variance”.

(4) If the contract price for the contract or component is determined entirely in accordance with regulation 19C (previously agreed price) the requirements in paragraphs (2) are modified as follows in relation to the contract or component—

(a)paragraph (2)(a) has effect as if at the end there were inserted “which were deliverable after the contract has become a qualifying defence contract”;

(b)paragraph (2)(b) has effect as if after “expressed” there were inserted “in respect of those deliverables that were deliverable after the contract became a qualifying defence contract”;

(c)the report need not contain the information specified in paragraph (2)(c), (e) and (p);

(d)paragraph (2)(i) has effect as if for the words from “any estimated” to the end there were substituted “the contract price for the contract or component estimated at the time of agreement and the actual contract price for the contract or component”;

(e)paragraph (2)(j) has effect as if for “was entered into” there were substituted “became a qualifying defence contract”;

(f)paragraph (2)(m) has effect as if at the end there were inserted “after the contract became a qualifying defence contract”;

(g)paragraph (2)(n) has effect as if at the end there were inserted “after the contract became a qualifying defence contract”;

(h)paragraph (2)(o) has effect as if—

(i)in paragraph (2)(o)(i) at the end there were inserted “after the contract became a qualifying defence contract”;

(ii)paragraph (2)(o)(ii) were omitted.

(5) If the contract price for the contract or component is determined entirely in accordance with regulation 19E (competed rates applied to uncompeted volumes) in relation to the contract or component—

(a)paragraph (2)(f) has effect as if for “cost recovery base” there were substituted “competed rates”;

(b)paragraph (2)(h) has effect as if for “cost recovery base” there were substituted “competed rates”.

(6) The report need not separately identify any information in relation to a component which has been provided in a report under regulation 27A (component completion report).]

Textual Amendments

F1Words in reg. 28(2) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(i)

F2Reg. 28(2)(ba) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(ii)

F3Words in reg. 28(2)(c)(i) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(iii)

F4Words in reg. 28(2)(c)(ii) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(iv)

F5Words in reg. 28(2)(c)(iii) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(v)(aa)

F6Word in reg. 28(2)(c)(iii) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(v)(bb)

F7Words in reg. 28(2)(c)(iv) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(vi)

F8Words in reg. 28(2)(c)(v) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(vii)

F9Words in reg. 28(2)(c)(vi) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(viii)

F10Reg. 28(2)(d) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(ix)

F11Reg. 28(2)(e) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 33(a)(x)