Commons Sense

House of Commons · Written Ministerial Statement

Baseline Profit Rate 2020-21 for Single Source Defence Contracts

13 March 2020 · Ministry of Defence

Proposed by Ben Wallace Con Wyre and Preston North

Defence

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The Minister of State for the Ministry of Defence is announcing the baseline profit rate for single source defence contracts for the fiscal year 2020-21
  • Mr Ben Wallace has set the baseline profit rate at 8.22 percent
  • The changes will take effect from April 1, 2020

Issue summary

The Minister of State for the Ministry of Defence is announcing the baseline profit rate for single source defence contracts for the fiscal year 2020-21.

Action requested

Mr Ben Wallace has set the baseline profit rate at 8.22%, accepted new Capital Servicing Rates, and made an SSRO funding adjustment as recommended by the Single Source Regulations Office (SSRO). All changes will take effect from April 1, 2020.

Key facts

  • Baseline profit rate for single source defence contracts is set at 8.22%.
  • Capital Servicing Rates: Fixed - 3.66%, Working Positive - 1.22%, Working Negative - 0.61%.
  • SSRO Funding Adjustment of -0.052%.
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