UK Single Source Regulations

Single Source Contract Regulations 2014 (SSCR 2014)

UK sole source government contracts, primarily defense contracts, are regulated under the Single Source Contract Regulations 2014 (SSCR 2014), which require them to be over £5 million and not be an excluded contract. The Single Source Regulations Office (SSRO) oversees these contracts, which are often used for national security or when only one specialist supplier exists. The SSCR 2014 framework, created by the Defence Reform Act 2014, governs the pricing, profit, and reporting for these non-competed contracts.

Key aspects of UK sole source government contracts=

Applicability: The regulations apply to defence contracts over £5 million that are awarded without competition, unless they are for specific purposes like government-to-government sales.

Governance: The Single Source Regulations Office (SSRO) is the body responsible for overseeing the framework, which includes recommending profit rates and providing guidance on matters like allowable costs.

Profit calculation: The SSCR 2014 provides a specific formula for determining the contract's profit rate, which includes adjustments for cost risk, SSRO funding, and other factors.

Amendments: The regulations have been updated, including by the Single Source Contract (Amendment) Regulations 2024, to expand the scope of "qualifying defence contracts" to include those substantially for defence purposes, even if other government departments are involved. Purpose: Sole source contracts are typically used when only one supplier can meet the contract's requirements, often due to reasons of national security or specialized expertise.

Where to find more information

SSRO website: Provides detailed guidance, information on statutory functions, and contact details. GOV.UK: Contains policy documents, responses to queries, and other official information. Legislation.gov.uk: Lists the specific legal text of the Single Source Contract Regulations 2014 and its amendments.