Annual compliance report 2018
This report presents a commentary from our review of the report submissions made by contractors for the procurement of military goods, works and services.
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The regulatory framework for single source defence contracts was introduced by Part 2 of the Defence Reform Act 2014 (the Act) and the Single Source Contract Regulations 2014 (the Regulations). It requires contractors to submit a range of statutory reports to the MOD and the SSRO.
The SSRO’s Annual Compliance Report brings together our work in respect of:
- reviewing the extent to which persons subject to reporting requirements are complying with them, as required by section 36(2) of the Act; and
- considering any implications for the provision of the regulatory framework established by Part 2 of the Act and the Regulations, which we are required to keep under review by section 39(1) of the Act.
The report presents the issues that have been identified, the key resulting messages, and the actions taken, or that need to be taken, as a result.
We have been working with stakeholders to improve compliance with reporting requirements, looking for efficiencies and taking a more risk based and proportionate approach to monitoring. We have introduced further automatic validation into our Defence Contract Analysis and Reporting System (DefCARS) and we have made it possible for reporting issues to be raised and tracked within the system. We are placing greater reliance on the MOD to verify reports against contract information. Looking forward, we plan to supplement these changes by analysing submitted reports on a thematic basis, to inform improvements to systems and guidance, and recommendations for legislative change. The SSRO additionally intends to spot check reports in order to carry out more detailed reviews.