Single Source Regulations Office - Provision of SSRO Opinions, SSRO Determinations & SSRO Answers

The Single Source Regulations Office (SSRO) acts as the independent expert in relation in the provision of opinions (pre-contract award) or determinations (post-contract award)in respect of the application of Part 2 of the Defence Reform Act 2014 and the Single Source Contract Regulations 2014. 

SSRO Opinions & Determinations

Generally the SSRO opinions and determinations are currently limited to some quite specific elements of the Defence Reform Act and the Single Source Contract Regulations. A slightly wider scope is possible if both the UK MoD and the Contractor agree to a specific referral to the SSRO to try to resolve a difference between the parties over the application or interpretation of the Act and the Regulations.

 SSRO Opinion 1 – November 2015

The SSRO opinion examined the extent to which the following cost/cost risks may be an allowable cost within the target cost of a planned contract:

(a) The price risk associated with (i) direct labour, direct material and technical risk 

(b) The price risk associated with indirect costs

(c) rework, defect and deficiencies costs

 Note: the SSRO allowable cost guidance has been updated post the date of this opinion and has added some additional clarity to item (c) above.

SSRO Determination 1 - May 2016 (Rolls Royce Adour Jet engine Availability Contract)

The SSRO determination examines the extent to which (i) Sales and Marketing costs were an allowable cost under the contract in question and (ii) reviews the contractor claimed adjustment factor under the cost risk adjustment element of the six step profit formula.

Note : This determination needs to be read in conjunction with the 2018 issue of the SSRO's allowable cost guidance that has revised the manner in which the contractor may seek to justify certain of its sales and marketing costs as allowable costs.

SSRO Opinion 2 – October 2016

The SSRO opinion examines the extent to which costs arising from work undertaken at risk by the contractor (pre-contract award) may be an allowable cost under any resulting contract.

SSRO Opinion 3 - March 2017

The SSRO considered the extent to which the requirements of the Act and the Regulations would apply to payments made under a pre-regime contract (that was not a QDC) given an identified relationship between those payments and proposed QDCs or QSCs. In particular, the SSRO considered the requirements of the following: 

(i) the contract reports required by Part 5 of the Regulations; and (ii) the overhead reports, strategic industry capacity reports or small or medium enterprises (SME) reports required under Part 6 of the Regulations. 

SSRO Opinion 4 - February 2018

The SSRO considered the status of costs incurred and agreed under the contract prior to its conversion to a QDC. These costs have been commonly referred to in SSRO publications as Sunk Costs.

SSRO Answers

To date the SSRO has only provided the above four opinions and one determination. This may be in part because contractors are more comfortable in asking the SSRO a question outside the formal regulatory framework of opinions & determinations. This has resulted in the SSRO issuing a specific "answers" publication updated monthly that provides answers for commonly asked questions from contractors.

SSRO Guidance & Publications

Link to SSRO Publications - Answers(to questions asked)