Questionnaire on the Method of Allocation of Costs (QMAC)
A contractor undertaking UK MoD single source contracts is expected to have in place a QMAC. The purpose of the QMAC from the UK MoD's and the SSRO's perspective is to ensure consistency of the contractors approach to the classification and method of allocating costs within the contractor's organisation. The QMAC will typically for example describe if a specific type of cost is classified as a direct or indirect cost.
Under the new single source pricing framework the contractors disclosure under the QMAC (as under the previous single source pricing regime) does not determine if a cost is an allowable cost. The determining document under the new single source pricing framework is the Single Source Regulations Office's publication: Single Source Cost Standards - Statutory Guidance on Allowable Costs.
The QMAC however remains a very important document from the perspective of the contractor as its completion can avoid potential cost allocation disputes and we can assist with its completion if help is required.
Cost Recovery Rates
The new single source pricing framework also makes an assumption that (as with the previous single source pricing regime) the contractor will submit to the UK MoD its claimed estimated and actual cost recovery rates applicable to UK MoD single source contracts as these must be used for pricing and subsequently the cost recording for the contract