Guidance on the baseline profit rate and its adjustment 2018
SSRO’s statutory guidance on the baseline profit rate and its adjustment 2018/19
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Section 17(2) of the Defence Reform Act 2014 sets out the six steps to be used when determining the contract profit rate for a qualifying defence contract or qualifying sub-contract. The SSRO may issue guidance in relation to any of these steps and contractors and the MOD must have regard to it, as specified in Section 18(1) of the Act.
On 15 March 2018 we reissued our statutory guidance on the application of each of these steps to include the rates which apply for 2018/19. No other part of the guidance has been updated.