Part 2Single source contracts
Qualifying defence contracts
I1I214Regulations relating to qualifying defence contracts
1
The Secretary of State may by regulations under this Part (“single source contract regulations”) make provision in relation to qualifying defence contracts.
2
For the purposes of this Part, a contract is a “qualifying defence contract” if—
a
it is a contract under which the Secretary of State procures goods, works or services for defence purposes from another person (a “primary contractor”),
b
the value of the contract is of or above the amount specified in single source contract regulations,
c
the contract does not fall within a description specified in the regulations, and
d
subsection (3), (4) or (5) applies to the contract.
3
This subsection applies to a contract if—
a
the contract is entered into on or after the relevant date, and
b
the award of the contract is not the result of a competitive process.
4
This subsection applies to a contract if—
a
the contract was entered into before the relevant date,
b
the award of the contract was not the result of a competitive process,
c
the contract is amended on or after that date, and
d
in amending the contract, the Secretary of State and the primary contractor agree that it is to be a qualifying defence contract.
5
This subsection applies to a contract, whether entered into before or after the relevant date, if—
a
the award of the contract is the result of a competitive process,
b
the contract is amended on or after the relevant date,
c
the amendment is not the result of a competitive process, and
d
in amending the contract, the Secretary of State and the primary contractor agree that it is to be a qualifying defence contract.
6
Single source contract regulations must make provision for determining whether the award, or amendment, of a contract is the result of a competitive process.
7
The Secretary of State may direct that a particular contract to which subsection (3) applies is not a qualifying defence contract even though the contract otherwise meets the requirements of subsection (2).
8
In this section, “defence purposes” has the meaning given by the regulations.
9
In this Part—
a
“relevant date” means the date on which the first single source contract regulations come into force;
b
references to “single source contract regulations” are to be read in accordance with subsection (1);
c
references to a “primary contractor” are to be read in accordance with subsection (2)(a).