Commons Sense

House of Commons · Written Ministerial Statement

Baseline Profit Rate for Single Source Contracts 2024-25.

15 March 2024 · Ministry of Defence

Proposed by James Cartlidge Con South Suffolk

Defence

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

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At a glance

Key points

  • Baseline profit rate for single source defence contracts for 2024-25 is set at 8.24%
  • The rate represents a decrease from 8.29% in the previous year
  • The SSRO funding adjustment has been removed as recommended

Issue summary

The Minister of State for Defence Procurement is announcing the baseline profit rate for single source defence contracts for 2024-25 as recommended by the Single Source Regulations Office.

Action requested

I have set the baseline profit rate at 8.24%, a decrease from 8.29% in the previous year, and removed the SSRO funding adjustment as per recommendations. The new rates will take effect on April 1, 2024.

Key facts

  • Single Source Regulations Office recommended a Baseline Profit Rate of 8.24% for single source defence contracts.
  • This is a decrease of 0.05% from the previous year's rate of 8.29%.
  • The Capital Servicing Rates have been updated as follows: Fixed Capital Servicing Rate at 3.26%, Working Capital Servicing Rate (positive) at 3.1%, and Working Capital Servicing Rate (negative) at 1.61%.
  • The SSRO funding adjustment has been removed.
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