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Baseline Profit Rate 2020-21 for Single Source Defence Contracts

13 March 2020

Proposing MP
Ben Wallace Con
Wyre and Preston North
Type
Written Ministerial Statement
Department
Ministry of Defence
View on Parliament.uk -->

At a Glance

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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