SSRO Support
Source: gov.uk (2025-01-27)

Details of how the SSRO supports the MOD and defence contractors.

See guidance provided by the SSRO (https://www.gov.uk/government/publications/guidance-provided-by-the-ssro).

See responses to commonly asked questions (https://www.gov.uk/government/publications/responses-to-commonly-asked-questions).

The SSRO provides support to the MOD and defence contractors in relation to the regulatory framework established by the Defence Reform Act 2014 and the Single Source Contract Regulations 2014. The SSRO’s support is designed to:
- inform people about the regulatory framework, the role of the SSRO and aspects of its work, such as guidance, compliance reviews and referrals;
- assist contractors to submit reports required under the regulatory framework and apply the SSRO’s guidance; and
- help the MOD and contractors to use the Defence Contracts Analysis and Reporting System (DefCARS).
To contact the SSRO with a query, call xx-xxxx-xxxx (9am to 5pm Monday to Friday, excluding UK bank holidays) or email xxx@xxx.xx (mailto:xxx@xxx.xx)

Helpdesk

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Our helpdesk provides ongoing support to contractors and the MOD. It operates from 9am to 5pm Monday to Friday, excluding UK bank holidays. It can be contacted on xx-xxxx-xxxx or by email at xxx@xxx.xx (mailto:xxx@xxx.xx). We can also arrange online video calls via Microsoft Teams.

We answer most helpdesk queries within 1 or 2 working days and aim to respond to all queries within a maximum of 5 working days.

MOD staff should follow internal routes for guidance and support in the first instance but can also (after that) contact the helpdesk for any additional support.

We provide a non-referral advice service for contract-specific queries on applying the regulatory framework that are more complex in nature and can’t be dealt with by the SSRO Helpdesk. We aim to respond to complex queries within 10 to 15 working days of receipt. More detailed guidance on the SSRO’s non-referral advice service is available at: https://www.gov.uk/government/publications/the-ssros-non-referral-advice-service.

Referrals

Some matters related to how the regulatory framework operates in specific circumstances require very detailed consideration and, as such, cannot be answered by the SSRO helpdesk. Where the Act and Regulations permit, the MOD or a contractor may seek an expert opinion or determination from the SSRO on the application of the regulatory framework. We have provided guidance for the MOD and contractors on making a referral for an opinion or a determination (https://www.gov.uk/government/publications/guidance-on-the-ssros-referrals-procedures-under-the-defence-reform-act-2014-and-single-source-contract-regulations-2014). To discuss a potential referral, please email xxx@xxx.xx (mailto:xxx@xxx.xx) or contact the helpdesk (mailto:xxx@xxx.xx) and we will direct you to a member of staff.

Pricing contracts

We provide statutory guidance on adjustments to the baseline profit rate (https://www.gov.uk/government/publications/guidance-on-the-baseline-profit-rate-and-its-adjustment-version-7) to arrive at a contract profit rate and Allowable Costs (https://www.gov.uk/government/publications/allowable-costs-guidance-version-5) that can form part of the contract price where default pricing methods are used. The SSRO also provides guidance on alternative pricing (https://www.gov.uk/government/publications/guidance-on-the-alternative-pricing-of-contracts-version-1) where alternative pricing methods are used. The contracting authority (usually the MOD) and contractors must have regard to this guidance when agreeing and pricing the contract. We provide more information about pricing contracts at: https://www.gov.uk/guidance/i-want-to-agree-the-price-of-a-qualifying-contract-and-understand-allowable-costs-and-profit-rates.

Getting familiar with the regulatory framework

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The SSRO’s ‘About Us’ page (https://www.gov.uk/government/organisations/single-source-regulations-office/about) explains that we offer on-boarding meetings to contractors who have or will have a QDC or QSC for the first time. These meetings are designed to help contractors understand the regulations, their obligations under them and how to prepare and submit reports. The meetings include a demonstration of DefCARS and use a standard slide pack (available on request ahead of on-boarding meetings). Companies who already have qualifying contracts can also request on-boarding meetings to further develop their understanding or to induct new teams. Further information about the regulatory framework can be found at https://www.gov.uk/guidance/i-would-like-to-find-out-about-the-ssro-and-the-regulatory-framework. To request a meeting or initial information about the SSRO and the regulatory framework, please email xxx@xxx.xx (mailto:xxx@xxx.xx).

The first contract reports are due for submission within one month of a qualifying contract being entered into. The SSRO reporting system (DefCARS) enables contractors to develop draft reports for potential contracts and discuss them with the MOD before the contracts are entered into and reports formally submitted.

Preparing reports

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Contractors must provide statutory contract and supplier reports to the MOD and the SSRO using DefCARS and we provide guidance (https://www.gov.uk/guidance/contract-and-supplier-reporting-defcars-and-associated-guidance) on the preparation of these reports.

The SSRO publishes contract reporting guidance (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/934305/DefCARS_contract_guidance_Version_9_Nov_2020A.pdf) to help contractors understand how to prepare and submit their reports, which includes the relevant reporting deadlines. Reports developed using the ‘potential QDC’ feature will have their status changed once it has been confirmed that the contract has been entered into, to allow for submission.

It can be complicated to understand when supplier reports are required and we have provided detailed guidance in section 2 of our supplier reporting guidance (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/934302/DefCARS_supplier_reports_guidance_Version_8_Nov_2020A.pdf) to help contractors understand when these are required. Further information about reporting can be found at https://www.gov.uk/guidance/i-need-to-submit-a-report-and-want-to-check-if-it-will-be-compliant.

Reviewing report submissions

Once a report is submitted, it will be reviewed by the MOD and the SSRO. The SSRO’s compliance methodology (https://www.gov.uk/government/publications/compliance-and-review-methodology-january-2020) explains our approach to reviewing reports. Any issues identified by either party will be raised in DefCARS and will identify the relevant area of the report. The contractor can provide comments in response to the identified issue or submit a correction of the original report. We provide support to contractors to help them understand why issues have been raised on reports. Contractors should contact the SSRO helpdesk where they are unclear on why issues have been raised. We also publish an Annual Compliance Report (https://www.gov.uk/government/publications/annual-compliance-report-2020) to help contractors understand how compliance with reporting requirements and the quality of data provided in the reports can be improved.

The SSRO publishes guidance (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/417689/SSRO_guidance_on_determining_amount_of_penalty_web.pdf) to assist the MOD in determining the amount of any financial penalty it issues for non-compliance.

DefCARS system

The Reporting Guidance and DefCARS page (https://www.gov.uk/guidance/contract-and-supplier-reporting-defcars-and-associated-guidance) provides information of the current status of the reporting system.

DefCARS training

We run separate DefCARS training sessions for the MOD and industry. If you are interested in arranging training or would like your name added to the delegate list for the next course please email xxx@xxx.xx (mailto:xxx@xxx.xx).

Operational Working Group

We communicate with key stakeholders through our Operational Working Group and its Reporting and IT sub-group. We provide email updates to members of the group and hold regular meetings at which we discuss the regulatory framework and the SSRO’s activities. All companies with a qualifying contract can be an Operational Working Group member. If you would like to be included in this group, please contact xxx@xxx.xx (mailto:xxx@xxx.xx).

Upcoming meetings:
- 30 April 2025
- 15 October 2025
Reporting and IT sub-group

We have a Reporting and IT sub-group where we discuss matters relating to the SSRO’s reporting guidance and DefCARS. We receive feedback from users of DefCARS on how it can be improved. All companies with a qualifying contract can be a Reporting and IT sub-group member. If you would like to be included in this group, please contact xxx@xxx.xx (mailto:xxx@xxx.xx).

Upcoming meetings:
- 19 March 2025
- 23 July 2025
- 19 November 2025
Assessment notifications

Regulation 61 specifies the circumstances in which an assessment must be carried out of whether a proposed sub-contract would be a Qualifying Sub-Contract (a QSC assessment). A QSC assessment must be carried out by the primary contractor or other person who proposes to enter into a sub-contract if the proposed sub-contract involves the provision of anything for the purposes of a QDC or QSC to which the contractor or other person is a party. Regulation 61 also specifies that the person carrying out the assessment must keep a record of the assessment, give written notice to the MOD and the sub-contractor if it considers the contract would be a QSC, and in all cases give written notice that an assessment has been made to the MOD and the SSRO. The requirement upon contractors to provide a notification for the purposes of regulations 61(3) and (6) and 61(8) is not satisfied through the submission of sub-contract information or statutory reports in DefCARS.

For assessments in all cases, an assessment notification template, together with guidance on submitting the notification, is available for contractors to use: Notice of sub-contract assessment (https://assets.publishing.service.gov.uk/media/688734fa1e72aed40611af63/202506_Notice_of_QSC_assessment_form.docx) (MS Word Document, 34.9 KB)

If a contractor wishes to provide the template to the MOD and/or the SSRO in DefCARS, this can be done by uploading the completed template to the sub-contracts page of the next applicable report. The Contract Notification Report, Quarterly Contract Report, Interim Contract Report or Contract Completion Report submitted for the parent contract may be the most appropriate as these already include a page on sub-contract information, but contractors remain free to adopt other approaches should they wish to. A separate template has been developed by the SSRO which can be used to notify the MOD and the proposed sub-contractor of a positive QSC assessment: Notice of a positive qualifying sub-contract assessment (https://assets.publishing.service.gov.uk/media/68873505be2291b14d11af6e/202506_Notice_of_Positive_QSC_Assessment_form.docx) (MS Word Document, 53.6 KB)

Assessments should be done in a timely way (before or upon entering into the sub-contract), as the requirements of the regulatory framework will only apply to the QSC once notice has been given and in order that the sub-contractor can meet its own reporting obligations in a timely manner.