GovWire

The regulatory framework for single source defence contracts requires contractors to submit a range of statutory reports to the Ministry of Defence (MOD) and the SSRO. The SSRO examines these report submissions to monitor compliance with reporting requirements and inform its understanding of how the regulatory framework is operating.

The report submissions contain a range of information that is provided to the MOD and the SSRO, including estimated, forecast, and actual costs, profits and overheads relating to the deliverables in non-competitive defence contracts. The data we hold provides a significant, growing resource, with over 1500 individual reports being expected each year. This data can be used to support contract management; and produce reports and analysis to drive better defence procurement.

This compliance bulletin presents key compliance statistics relating to contract and supplier reports expected for submission between 1 May 2023 and 30 April 2024. Data in this bulletin is also presented in relation to the period commencing 1 May 2018, when compliance related data first became available in the SSROs Defence Contract Analysis and Reporting System (DefCARS).

The bulletin finds that the majority of expected report submissions are eventually received, with submission timeliness (being delivered in line with the timescales set out in the legislation) improving for contract reports and remaining constant for supplier reports when compared to last year. The quality of submissions (complying with the legislative requirements) remains similar to last year with half of contract and supplier reports meeting the quality threshold on the first attempt. Both timeliness and quality remain below the SSROs Key Performance Indicator of 75 per cent, but when allowing for additional time, beyond the expected submission date, most of the expected reports are eventually received and the proportion of all report types correct upon subsequent submission achieved 90% or greater showing that action is taken when issues that need resolution are identified.

The SSRO continues to support both industry and the MOD to meet their obligations, through our on-boarding training, DefCARS demonstrations, helpdesk support, reporting guidance, provision of non-referral advice, DefCARS developments and provision of compliance Management Information (MI). We also promote consistent and ongoing use of the data by working with the MOD by raising awareness of compliance issues, performing targeted reviews of individual submissions and providing direct feedback to MOD teams on these reviews, undertaking thematic reviews across a range of submissions, and supporting the Compliance Notice process. This now includes providing more regular compliance MI to proactively inform stakeholders of their timeliness and quality cumulative positions which provides the opportunity to correct any issues identified. Increased levels of compliance will ensure data is available to the MOD when required and that the data received can be relied upon.