GovWire

The Ministry of Defence introduced the SSCRs in December 2014 to address long-standing issues with the 9 billion per year that the MOD spends on non-competitive defence procurement. The regulations are expressly designed to provide value for money in public expenditure while ensuring fair prices are paid to industry. As of December 2021, 365 Qualifying Defence Contracts (QDCs) and 60 Qualifying Subcontracts (QSCs) with a total value of 62.1 billion have been brought under the regime.

The proposed reforms seek to ensure the SSCRs fully support the delivery of the Defence and Security Industrial Strategy (DSIS) which establishes a more strategic relationship between Government and the defence and security industries. Where we procure in the absence of competition, it remains vital that we pay fair prices for the goods and services we buy, to provide value for money for the taxpayer while ensuring the UK defence sector remains an attractive place to invest. Fully functioning SSCRs are fundamental to meeting these objectives.

The reforms will provide the choice and flexibility needed to ensure that the SSCRs can be applied to a wider range of contracts, including by introducing new ways of determining a fair price for goods or services. Drawing on experience gained since the legislation was introduced the reforms will also speed up and simplify the acquisition process, closing any loopholes in the framework that have become apparent and tidying up the SSCRs.

November 2023 update - Reform of the Single Source Contract Regulations (SSCRs) - secondary legislation

Implementation of the proposals in the Command Paper will require a combination of primary and secondary legislation. The necessary primary legislation has been enacted through Schedule 10 of the Procurement Act 2023 and the MOD now plans two tranches of secondary legislation that will make amendments to the Regulations.

A first tranche of secondary legislation will deliver the most urgent reforms.The consultation document Reform of the Single Source Contract Regulations (SSCRs) - secondary legislation seeks views on the changes being made in tranche one.