Defined pricing structure
The DPS is a list of cost categories used to capture data on the reports required by the Defence Reform Act and the relevant regulations.
Defined Pricing Structure (DPS) is the term used to define lists of cost categories used to capture data on the contract reports which are required, by the Defence Reform Act and the relevant regulations, to be submitted to the SSRO. The DPS in particular is mandated for the contract notification report, interim contract report and contract completion report. The objective for the DPS is to build up over time a single, centrally available, comprehensive and robustly structured data set that records the estimated and outturn costs, alongside initial and final contract out parameters, for every qualifying defence contract (QDC).
The SSRO propose basing the DPS on US Military Standard 881c. The benefits of using this approach is that 881c has been established and refined over many years of US experience, which has been tried, tested and proven on a much bigger scale. However we also recognise that the DPS will need to be developed over time in concert with the cefence contractors. To allow for this the immediate reporting requirements will be to include the DPS at Level 1 only thus relating to the total programme cost. We propose to develop Level 2 over the next 6 months, working with early adopters and the MOD. In the medium term we will develop levels 3 and 4 of the DPS to create a complete suite of agreed pricing structure.
An example of a worked DPS, based on a submarine system, is provided as an example to inform this consultation. This example describes the DPS at 4 levels. During our research we recognise and acknowledge that a single 4 level DPS may not be tailored to reflect different types of service contracts and we will consider how best to address these with the defence community in the coming months.
This consultation closes on 19 March 2015, after which the SSRO Board will consider the responses to the consultation.
Note: the example DPS used in the original consultation has been removed (27 April 2016).
FeedbackPlease email feedback to: reporting@singlesourceregulationsoffice.gov.uk