Consultation outcome

Consultation on the compliance and review methodology - September 2016

From:: Single Source Regulations Office
Published: 27 September 2016
Last updated: 24 January 2017 — See all updates

Read the full outcome

Compliance and review methodology: Consultation response January 2017

PDF, 157 KB, 9 pages

Consolidated consultation responses

PDF, 1.21 MB, 24 pages

Detail of outcome

The Defence Reform Act 2014 places obligations on the SSRO to keep under review the regulatory framework and the extent to which organisations subject to reporting requirements are complying with them.

The SSRO has recently reviewed its model of regulation, in the light of these obligations, its experience to date and current regulatory best practice. It consulted on its updated compliance and review methodology between 27 September and 8 November 2016.

The SSRO received responses from industry, government and defence consultants during the six-week consultation, which provided us with constructive feedback on the principles behind the methodology and the format of the next annual compliance report.

All feedback received has been carefully considered. The consultation response document summarises the key issues raised and provides the SSRO’s response to them.

The final compliance methodology sets out an approach that:

makes the compliance methodology more closely aligned with best practice models of regulation;
clarifies the distinction between the work / roles of the SSRO and the Cost Assurance and Analysis Service (CAAS);
clarifies the legislative roles and responsibilities of the SSRO, the MOD and industry;
improves collaboration and understanding between the SSRO, the MOD and industry, whilst still maintaining the SSRO’s independence;
reduces the overall ‘compliance burden’ on industry and the MOD; and
focuses on the actions taken by industry and the MOD, as the intermediary assurance authority, as a result of issues that are identified by the SSRO.

Original consultation

Consultation description

The SSRO has recently reviewed its model of regulation, in the light of these obligations, its experience to date and current regulatory best practice.

While the SSRO has a duty to ensure compliance with the Act and the Regulations, it is our view that doing so is not the sole responsibility of the SSRO, and there is a greater role for self-assurance. As a result, we have updated our compliance rating methodology to propose an approach that:

makes the compliance methodology more closely aligned with best practice models of regulation;
makes clearer the distinction between the work / roles of the SSRO and the Cost Assurance and Analysis Service (CAAS);
makes clearer the legislative roles and responsibilities of the SSRO, the MOD and industry;
improves collaboration and understanding between the SSRO, the MOD and industry, whilst still maintaining the SSRO’s independence;
reduces the overall ‘compliance burden’ on industry and the MOD; and
focuses on the actions taken by industry and the MOD, as the intermediary assurance authority, as a result of issues that are identified by the SSRO.

The SSRO is publishing a consultation paper covering the planned update to its compliance and review methodology. We believe our proposed new compliance methodology makes best use of current resources and ensures there is no duplication with the work of the MOD or unnecessary burden on industry.

The SSRO publishes an annual Compliance Report, which summarises compliance by the MOD and single source suppliers to the provisions of the Act and Regulations. The purpose of the SSRO’s Compliance Report is to be an effective tool to monitor and encourage compliance with the single source procurement regime. It is also central to the SSRO’s objective of a transparent and accessible regulatory framework. We are proposing that the annual Compliance Report should be compiled using the approach described in the compliance methodology document.

This is a public consultation, which is open to anyone with an interest in the SSRO’s two statutory aims of obtaining good value for taxpayers’ money and a fair and reasonable return for industry. We also welcome comments from people or organisations with a particular interest in defence (non-competitive) procurement. Please respond by 8 November 2016.

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