Commons Sense

Hansard-based summaries and metrics

<-- Back to proposed bills

Baseline Profit Rate for Single Source Contracts 2024-25.

15 March 2024

Proposing MP
James Cartlidge Con
South Suffolk
Type
Written Ministerial Statement
Department
Ministry of Defence
View on Parliament.uk -->

At a Glance

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.
▸ Assessment & feedback
Summary accuracy