Seeks views on proposed changes to the SSRO's Allowable Costs guidance.
The SSRO is consulting on proposed changes to its guidance on Allowable Costs in qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs) regulated under the Defence Reform Act 2014 (the Act) and Single Source Contract Regulations 2014.
This consultation is open to anyone with an interest in ensuring that good value for money is obtained in government expenditure on QDCs and QSCs and that a fair and reasonable price is paid to contractors. We particularly welcome comments from individuals or organisations with an interest in non-competitive defence procurement.
Our proposed updates focus on improving the guidance we provide to parties negotiating qualifying contracts in the following areas:
Overheads: Helping the parties establish which overhead costs may be included in the price of a qualifying contract as allowable. We propose to refine and clarify the wording of the guidance and include some examples to assist its application.
Indirect costs: Encouraging a structured and consistent application of the requirements of allowable costs in agreeing cost recovery rates. We propose to introduce new specific guidance in this area.
To assist stakeholders in understanding the proposed changes, the consultation document clearly shows where the existing guidance text has been revised, deleted or added, and the purpose of the changes proposed.
The proposals for change have been informed by stakeholder input which we have summarised in the consultation and explained how it has informed the guidance developments.
The consultation runs until 18 July 2022.
Completed response forms should be sent:
The SSRO also welcomes the opportunity to meet with stakeholders to discuss the proposals during the consultation period. If you wish to arrange a discussion, please contact Peter Roche at the earliest opportunity via peter.roche@ssro.gov.uk.