GovWire

It is important that inflation receives the proper treatment in the pricing and reporting of qualifying defence contracts and sub-contracts. Doing so helps to ensure that value for money is obtained on qualifying contracts and that contractors are paid a fair and reasonable price under those contracts. To support this, the SSRO consulted with stakeholders and has issued new guidance which aims to assist the MOD and contractors in agreeing how to reflect inflation in the pricing of qualifying contracts and when contractors are preparing their statutory reports under the Single Source Contract Regulations.

This document supplements the SSROs existing allowable costs, profit, and reporting guidance on the topic of inflation, the latest version of which should be read in conjunction with this document:

1. Allowable costs guidance
2. Guidance on the baseline profit rate and its adjustment
3. Guidance on preparation and submission of contract reports
4. Reporting guidance on preparation and submission of supplier reports

Any queries concerning this document, or operation of the regulatory framework, should be directed to the SSRO helpdesk.

Our helpdesk provides ongoing support to contractors and the MOD. It operates from 9am to 5pm Monday to Friday. It can be contacted on 020 3771 4785 or by email at helpdesk@ssro.gov.uk. We can also arrange online video calls via Microsoft Teams.