Citation and commencement

1. These Regulations may be cited as the Single Source Contract (Amendment) Regulations 2018 and come into force on the day after the day on which they are made.

General

2.The Single Source Contract Regulations 2014( 2 ) are amended in accordance with regulations 3 to 6.

Amendment of regulation 5 (calculating the value of a contract)

3. —(1) In regulation 5(3)(a), omit “12(1) (calculation of POCO adjustment) or”.

(2) In regulation 5(3)(a)(i), for “12(1) or 61 (as the case may be)” substitute “61”.

Amendment of regulation 7 (contracts that may not be qualifying defence contracts)

4. —(1) In regulation 7(b), after “programme” insert “, except where the parties to any such contract agree that it is a contract which should be a qualifying defence contract”.

(2) Omit regulation 7(c)(iii).

(3) After regulation 7(c) insert—

“ (d) in relation to which compliance with Part 4, 5 or 6 of the Regulations (records and reports), or section 26 of the Act (duty to report relevant events, circumstances and information), would require disclosure of information which the Secretary of State considers would create a risk to national security; or

(e) falling within sub-paragraph (f) below;

(f) a contract (B) falls within this sub-paragraph if—

(i) B is a contract to which the Secretary of State is a party,

(ii) B replaced a contract (A),

(iii) the purpose of B is to ensure the performance of contractual obligations which were to be performed under A,

(iv) the Secretary of State was a party to A, but it was not a qualifying defence contract, and

(v) B is in all material respects (save for the identity of any party to the contract other than the Secretary of State) identical to A. ” .

Amendment of regulation 13 (rates agreed on a group basis)

5. —(1) In regulation 13(2), after “allowable costs under” for “any qualifying defence contract” substitute “any such qualifying defence contract”.

(2) In regulation 13(4), after “allowable costs under” for “any qualifying defence contract” substitute “any such qualifying defence contract”.

(3) In regulation 13(5), after “primary contractor to perform” for “any qualifying defence contract” substitute “any such qualifying defence contract”.

Amendment of regulation 58 (requirements for qualifying sub-contracts)

6. —(1) In regulation 58(2)(a), after “programme” insert “, except where the parties to the contract agree that it is a contract which should be a qualifying sub-contract”.

(2) In regulation 58(2)(b)(ii), after “other structures;”, for “or” substitute “nor”.

(3) Omit regulation 58(2)(b)(iii).

(4) After regulation 58(2)(b) insert—

“ (c) a contract in relation to which compliance with Part 4, 5 or 6 of the Regulations (records and reports), or section 26 of the Act (duty to report relevant events, circumstances and information), would require disclosure of information which the Secretary of State considers would create a risk to national security; nor

(d) a contract falling within sub-paragraph (e) below;

(e) a contract (B) falls within this sub-paragraph if—

(i) B replaced a contract (A),

(ii) the purpose of B is to ensure the performance of contractual obligations which were to be performed under A,

(iii) A was not a qualifying defence contract or qualifying sub-contract,

(iv) at least one of the parties to A is also a party to B,

(v) at least one of the parties to B was not a party to A, and

(vi) B is in all material respects (save for the identity of the parties to the contract) identical to A. ” .