Defence Reform Act 2014

28 Qualifying sub-contracts

(1) Single source contract regulations may make provision in relation to qualifying sub-contracts.

(2) For the purposes of this Part—

(a) “qualifying sub-contract” means a contract to which subsection (3) or (4) applies;

(b) references to a “sub-contractor” are to a person who provides anything under such a contract.

(3) This subsection applies to a contract between a primary contractor and another person if—

(a) the contract involves the provision by the other person of anything for the purposes of a qualifying defence contract to which the primary contractor is a party,

(b) the award of the contract is not the result of a competitive process,

(c) the value of the contract is of or above the amount specified in the regulations, and

(d) the contract meets such other requirements as may be specified in the regulations.

(4) This subsection applies to a contract (“contract B”) if—

(a) contract B involves the provision of anything for the purposes of another contract (“contract A”) where contract A is—

(i) a contract to which subsection (3) applies, or

(ii) another contract to which this subsection applies,

(b) the award of contract B is not the result of a competitive process,

(c) the value of contract B is of or above the amount specified in the regulations, and

(d) contract B meets such other requirements as may be specified in the regulations.

(5) The regulations must make provision for determining for the purposes of this section whether the award of a contract is the result of a competitive process.

(6) The Secretary of State may direct that a particular contract is not a contract to which subsection (3) or (4) applies even though the requirements of that subsection are met in relation to it.