Defence Reform Act 2014

Defence Reform Act 2014

2014 CHAPTER 20

Commentary on Sections

Part 2: Single Source Contracts

Section 30: Application of Part to qualifying sub-contracts

111. Part 2 and the SSCRs apply to qualifying sub-contracts (and sub-contractors) as they apply to QDCs (and primary contractors), subject to any modifications set out in the SSCRs (subsections (1) and (2)(a)). Subsections (3) and (4) provide for circumstances in which Part 2 shall cease to apply to a sub-contract and this includes enabling sub-contractors to give notice to the SSRO that in their opinion one or more of the conditions for the application of this Part are no longer met, though the SSRO may overrule such a notice if it disagrees with the sub-contractor’s opinion.

112. Subsection (5) provides that if notification has not been provided under section 29(2)(b) or (4)(b) then, despite the conditions for being a qualifying sub-contract being otherwise met by a sub-contract, Part 2 and the SSCRs shall not apply to it. This is because a sub-contractor must be aware before it enters into a qualifying sub-contract that it will be subject to the regulatory framework.