Baseline profit rate methodology March 2025 Test
Web text to be added thisi s an update
Proposed updates to how the starting point for profit rates for vital single source defence contracts are calculated
We are consulting on updates to the way that profit rates for defence-related single source contracts are calculated. Each year, the SSRO undertakes a robust process to assess the appropriate baseline profit rate (BPR) for single source defence contracts using the published BPR methodology. The BPR is the first step of the four-step process in […]
Baseline Profit Rate assessment: Proposed methodology updates
Consultation description As part of determining the baseline profit rate (BPR) for non-competitive qualifying defence contracts and subcontracts, we identify benchmark comparable company profits using criteria stated in the published BPR methodology. Keeping this methodology accurate, up to date and reflective of appropriate comparators to ensure a fair and reasonable profit and contract price is […]
2025 contract profit rate assessment
Recommendation factsheet 2025 Ancillary Services factsheet 2025 Construction factsheet 2025 Information Technology Services factsheet 2025 Key questions and answers regarding the SSRO’s single source baseline profit rate and capital servicing rates methodology The Secretary of State for Defence has announced his determination of the rates to be used for 2025/26, and we are delighted that […]
Guidance on the baseline profit rate and its adjustment (version 8.2)
Details The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent four-step process which helps to ensure that value for money is obtained for taxpayers on qualifying contracts and that contractors are paid a fair and reasonable price under those contracts. This guidance explains how to apply […]
Guidance on the baseline profit rate and its adjustment (version 8.1)
Details The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent process that ensures value for money and fair prices are obtained. Taking effect in April 2024, legislation and regulations simplified the steps in this process from six to four. The four-step process relates to contracts that […]
2024 contract profit rate assessment
Details The baseline profit rate and capital servicing rates continue to be the most significant determinants of contract profit rates and help ensure pace and agility in the way that single source contracts can be priced. The Secretary of State for Defence has now announced his determination of the rates for this year and we […]
Guidance on the baseline profit rate and its adjustment (version 8)
Details The contract profit rate for single source defence contracts and subcontracts is determined through a clear and transparent process that ensures that value for money and fair prices are obtained. New legislation and regulations have simplified the steps in this process from six to four. The four step process relates to contracts that apply […]
Guidance on the baseline profit rate and its adjustment (version 7.3)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract (QDC) or qualifying sub-contract (QSC). The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have […]
2023 contract profit rate recommendation
Details Under the Defence Reform Act 2014, the Single Source Regulations Office (SSRO) is required to provide the Secretary of State each year with an assessment of the appropriate baseline profit rate, SSRO funding adjustment and capital servicing rates used to determine the contract profit rate for qualifying defence contracts (QDCs) and qualifying sub-contracts (QSCs). […]
Guidance on the baseline profit rate and its adjustment (version 7.2)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract (QDC) or qualifying sub-contract (QSC). The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have […]
Guidance on the baseline profit rate and its adjustment (version 7.1)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract (QDC) or qualifying sub-contract (QSC). The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have […]
Guidance on the baseline profit rate and its adjustment (version 7)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have regard to […]
Guidance on the baseline profit rate and its adjustment (version 6)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have regard to […]
Guidance on the baseline profit rate and its adjustment (version 5)
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and the Ministry of Defence and its contractors must have regard to […]
Guidance on the baseline profit rate and its adjustment 2018
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and contractors and the MOD must have regard to it, as specified […]
Guidance on adjustments to the Baseline Profit Rate 2016
Details Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract. It is a legal requirement to have regard to this guidance. This document provides guidance on the adjustments to make to the baseline profit rate when determining […]