The Single Source Contract (Amendment) Regulations 2024

Amendment of regulation 22 (general reporting requirements and interpretation)

26.  In regulation 22—

(a) in paragraph (2)—

(i) for sub-paragraph (i) substitute—

“(i) the expected contract completion date (or, if the contract completion date is known, that date);”;

(ii) in sub-paragraph (k), for “regulated” substitute “contract”;

(b) after paragraph (2) insert—

“(2A) Where the qualifying defence contract contains components, every report provided under this Part must contain the following information in relation to each component except where the information is the same in relation to that component as it is in relation to the contract—

(a) the name, position and contact details of—

(i) the individual submitting the information in relation to the component;

(ii) the civil servant who is responsible for managing the component on behalf of the Secretary of State;

(b) any unique identifying number allocated to the component by the contractor;

(c) any unique identifying number allocated to the component by the Secretary of State;

(d) any title for the component set out in the contract;

(e) a brief description of the goods, works or services that are to be provided under the component;

(f) the date on which the component was entered into;

(g) the expected component completion date (or, if the component completion date is known, that date);

(h) the date and reference number of the most recent amendment which affects the price payable under the component (if any);

(i) the contract pricing method used in determining the price payable under the component;

(j) any business unit in relation to which a cost recovery rate has been used in determining the price payable under the component.”;

(c) in paragraph (6)—

(i) in the opening words, after “costs” insert “, actual price payable or actual volumes”;

(ii) in sub-paragraph (a), after “costs”, in both places it occurs, insert “, price payable or volumes”;

(iii) in sub-paragraph (b)—

(aa) in the opening words, after “costs”, in each place it occurs, insert “, price payable or volumes”;

(bb) in paragraph (i), after “costs” insert “, price payable or volumes”;

(cc) in paragraph (ii), after “costs” insert “, price payable or volumes”;

(d) after paragraph (6) insert—

“(6A) Where estimated costs, price or volumes are provided in accordance with paragraph (6)(b), the primary contractor must provide the actual costs, price or volumes as soon as reasonably practicable after that information becomes available.”;

(e) after paragraph (7) insert—

“(7A) Where a regulation requires reporting of the costs or profit of a component which was created because of a pricing amendment to which paragraph 7 of the Schedule applied, the parties may agree that the costs or profit are to be reported as the costs or profit originally determined in accordance with that paragraph (irrespective of any variance to the costs or profit which has occurred since).

(7B) Any requirement to report information split by defined pricing structure does not apply in relation to a contract or component the price of which was determined entirely in accordance with a contract pricing method under which costs are indistinguishable from profits.”;

(f) in paragraph (10), after sub-paragraph (a) insert—

“(aa) a reference to a contract pricing method under which costs are indistinguishable from profits is a reference to a contract pricing method described in regulation 19A, 19B(3), 19C or 19E;

(ab) where the price of a contract or component was determined in accordance with a contract pricing method under which costs are indistinguishable from profits, a reference to the costs of the contract or component is to be treated as a reference to the price of the contract or component;”.