Pricing of UK MoD Single Source Contracts

Course Title: Pricing of UK MoD Single Source Contracts under the Defence Reform Act

Course Duration: 1 Day

Sample Course Content

Overview

This comprehensive one-day programme has been developed to provide the participants with an understanding of the new Defence Reform Act (DRA), and the related Single Source Contract Regulations (SSCRs).It also addresses the UK MoD issued DEFCON conditions relating to pricing of UK MoD single source contracts that are not qualifying contracts for the purposes of the application of the DRA and SSCR.    

Training Objectives

Having attended this event the participants will have a better understanding of the following:

• The Defence Reform Act and the related Single Source Contract Regulations and their implications for industry

• The role of the Single Source Regulations Office (SSRO) including SSRO issued statutory guidance

• The major differences from the prior Government Profit Formula and Associated Arrangments (the GPFAA or "yellow book" pricing regime)

• The major new reporting requirements

 Full topic details as below

Target Audience

Primarily commercial, accounting, project management and sales staff who are directly involved with the negotiation of the commercial/pricing aspects of a single source contract with the UK MoD procurement team together with those staff creating the sub-contracts that will be developed to flow down the UK MoD contract conditions through the supply chain.

The course will be of benefit to junior and senior commercial officers, together with more experienced contracts and commercial managers.

Format

This comprehensive one day course is based on formal presentation material from the expert trainer and practical case examples / studies. Time will be set aside for participants to raise issues of particular interest to them.

Special Features

The course is run in a workshop format to facilitate participants raising any issues of particular concern to them.

The Expert Trainer

Mike is a qualified accountant and commercial specialist and provides commercial consultancy services to clients in the UK and overseas related to contracting with the UK MoD and the aerospace industry.

He has a broad experience of practical commercial interaction with the UK MoD gained over a thirty year period of working within the UK aerospace and defence industry and has held a number of senior commercial positions in major companies within the UK defence industry including the post of Commercial Executive at Racal & Commercial Director at Thales Avionics Limited.

Course Content

Day 1

Overview of the new Defence Reform Act (DRA) and Single Source Contract Regulations (SSCRs) pricing framework

Background to the new Act and the Single Source Pricing Regulations

Role of the Single Source Regulations Office (SSRO) including SSRO issued statutory guidance.

Identification of the main similarities and differences from the prior "yellow book" pricing framework.

Qualifying Defence Contracts (QDC) / Qualifying Sub-contract (QSC)

Pricing: Allowable Costs, Profit Rate and Profit adjustment steps, (including relevant SSRO issued answers to questions raised by industry and SSRO opinions/determinations)

MoD Audit Rights - Open Book principles

Contract Reporting during & at the completion of the contract

Supplier Record Keeping & Reporting Obligations

Compliance and Remedies

Confidentiality

Related UK MoD issued Defcons:  Defcon 800, Defcon 801, Defcon 802, Defcon 803, Defcon 804

The course content includes a general review of the practical steps that industry can take to minimise the margin erosion resulting from the DRA. The course also considers the compliance reports issued by the SSRO and how these can assist industry to provide adequate supporting information to its single source tenders.

Pricing of Single Source contracts not subject to the Defence Reform Act (Non-Qualifying Contracts)

Contractual regime applicable to contracts that are not a QDC or QSC.

New Defcons 811, Defcon 812, Defcon 813, Defcon 814 and Defcon 815