Developing an information technology services activity group

The SSRO applies its Single Source Baseline Profit Rate, Capital Servicing Rates and Funding Adjustment Methodology to benchmark a profit rate for four activity groups:

• Develop and make (D&M);
• Provide and maintain (P&M);
• Ancillary services; and
• Construction.

The SSRO is today launching a four-week consultation on developing an information technology (IT) services activity group, which might be used to benchmark a profit rate for defence contracts that are for the provision of IT services.

The SSRO has considered stakeholder feedback provided to date, alongside our own research, to develop a draft methodology. We are seeking input on whether we have correctly captured the IT services activities that may contribute to the delivery of QDCs and QSCs so that we can further develop the approach.

This consultation is open to all interested persons. We particularly welcome comments from individuals or organisations with an interest in single source defence procurement and ensuring that good value for money is obtained in government expenditure on qualifying contracts and that the prices paid under these contracts are fair and reasonable. We also welcome comments from people or organisations with a particular interest in non-competitive defence procurement.

The consultation runs until 5.00 pm Friday 5 November 2021. Written responses should be sent:

• by email to: consultations@ssro.gov.uk (preferred),
• by post to: Baseline profit rate consultation responses, SSRO, Finlaison House, 15-17 Furnival Street, London, EC4A 1AB,
• by telephone including arranging an appointment to speak to the SSRO about the consultation: 020 3771 4767