Single Source Cost Standards: Statutory Guidance on Allowable Costs 2016
The SSRO is consulting on an update to its guidance used by contractors and the Ministry of Defence when determining whether costs are Allowable under qualifying defence contracts and sub-contracts.
The Defence Reform Act 2014 provides the legislative basis for the Single Source Procurement Framework. The Act makes the Single Source Regulations Office (SSRO) responsible for issuing statutory guidance on Allowable Costs, which contractors and the Ministry of Defence must have regard to when determining whether costs are Allowable in single source qualifying defence contracts.
The SSRO originally published its Single Source Cost Standards: Statutory Guidance on Allowable Costs on 26 January 2015, following a public consultation.
In light of the SSRO’s experience to date, and feedback we have received through meetings with industry and our Helpdesk, the SSRO has sought to clarify aspects of the guidance. The changes give more clarity on the areas shown in the diagram below.
Allowable Costs updated areas
This is a public consultation, which is open to anyone with an interest in the SSRO’s two statutory aims of obtaining good value for taxpayers’ money and a fair and reasonable return for industry. We also welcome comments from people or organisations with a particular interest in defence (non-competitive) procurement. The consultation will close on 1 June 2016. Following our consideration of responses to the consultation, we will publish the final guidance document in July 2016.