Guidance on how the regulatory framework applies to qualifying sub-contracts

Qualifying sub-contracts (QSCs) account for around one in six of all qualifying contracts under the regulatory framework for single source defence contracts and have a combined value of more than £100 million. In response to a request from members of the SSRO’s Operational Working Group for an accessible summary of the regulatory provisions related to QSCs the SSRO has prepared the draft guidance on which it is now consulting. The draft guidance identifies and summarises the relevant provisions of the regulatory framework and provides signposting to existing applicable SSRO guidance, for example, on contract pricing and reporting.

The SSRO’s Chief Regulatory Officer, Jo Watts, said:

“The regulatory framework for single source defence contracts applies to QSCs and sub-contractors in much the same way as it does to qualifying defence contracts (QDCs) and primary contractors but with some specific modifications. The guidance on which we are consulting is designed to help the MOD, contracting authorities and sub-contractors better understand their statutory obligations and rights in relation to QSCs.”

The consultation is open for a six-week period until 5pm on 14 May 2025. Details of how to respond to the consultation are contained in the consultation document. If you would like to discuss any aspect of the consultation or the draft guidance during the consultation period, please contact David Pottruff at the SSRO (david.pottruff@ssro.gov.uk or 020 3589 4556).

Following consideration of the consultation feedback we aim to publish final guidance on QSCs in June 2025.