• Test 1

Expertise - UK Ministry of Defence Single Source Contracts

Metasums has provided technical support to major UK defence contractors and UK trade associations since 2008

Terry Hersey is a chartered management accountant with 40 years’ experience gained in senior finance posts within major defence contractors. An unrivalled industry-based understanding of the accounting requirements of the existing framework arrangement, the new commercial frameworks, and the recently implemented law.

Metasums can assist in you getting ready and safe.

Each contractor needs to become fully conversant with the MOD KiD website if he is to understand his rights and obligations that relate to single source contracts. The site (which is also open to contractors and public at large) is constructed by MOD to provide commercial guidance/instruction to its own commercial, accounting and procurement staff and is a source to standardised contracting templates together with existing and retired DEFCONs and DEFFORMs.

It is important that contractors distinguish between (1) Act and regulations (approved by Parliament), (2) statutory guidance (prepared and issued by the SSRO) and (3) commercial guidance in KiD or the SSRO website (FAQs) which have no status in law. Commercial guidance is often superficial and/or partial and does not address many areas that could represent significant risk to contractors.

Regardless of the framework applicable to a contract MOD expects to pay a fair and reasonable price for goods or services it acquires from contractors. When the contract or the contractor is subject to the single source pricing regulations (SSCRs) the law must be followed by MOD and the contractor. The contractor needs to understand and ensure compliance with the changing arrangements to make this happen.