Consultation outcome

Reporting guidance consultation paper

Updated 11 November 2020

1. Introduction

1.1 The SSRO is consulting on proposed changes to its reporting guidance. The proposals are detailed in this document.

1.2 The SSRO’s guidance on the preparation and submission of reports is statutory guidance which helps contractors to meet their reporting requirements under the Defence Reform Act 2014 and the Single Source Contract Regulations 2014 (the Regulations). Regulation 22(9) requires a contractor to have regard to any relevant guidance issued by the SSRO when preparing contract reports. Regulation 33(8) requires the designated person to have regard to any relevant guidance issued by the SSRO when preparing supplier reports.

1.3 The SSRO regularly updates its reporting guidance to:

• reflect learning from operation of the regulatory framework, particularly feedback about preparing and submitting reports;
• align with the Defence Contract Analysis and Reporting System (DefCARS), where functionality is regularly improved to reduce the reporting burden on contractors; and
• support any changes in the reporting requirements set out in the legislation.

1.4 This consultation document has been issued to stakeholders and will be published on the SSRO’s website. Section 3 addresses how feedback can be provided.

2. Consultation topics

2.1 This section and the appendices detail proposed changes to the SSRO’s reporting guidance for contract reports. Consultation questions are included to guide feedback, but comments are welcome on any aspects of the proposals.

Date a contract completes

2.2 Contractors are required to report the contract completion date of each qualifying contract and of associated sub-contracts. The SSRO is proposing to provide guidance to assist contractors to consistently report the contract completion date in DefCARS and to update it if the date changes. The draft guidance is set out at Appendix 1.

2.3 Regulation 4(1) provides three approaches for determining the contract completion date. The draft guidance assists with determining the following matters, which are used to define contract completion date:

• whether a contract completion date is described in the contract;
• the date on which the contractor expects to complete all obligations entitling it to final payment; and
• the date on which the contract is terminated.

2.4 The draft guidance also identifies the circumstances in which the contract completion date may change and the implications for due dates of contract reports. The guidance details how the contractor may report a changed contract completion date in DefCARS, so that the contract reporting plan is updated and the correct due dates of reports are generated.

The SSRO seeks input from stakeholders on the proposed guidance at Appendix 1. Feedback would also be welcomed on any reporting issues experienced in identifying the contract completion date, or with reporting or updating the contract completion date in DefCARS.

Guidance on the initial contract reports

2.5 Contractors are required to submit three initial reports for a qualifying contract:

• contract pricing statement (CPS);
• contract reporting plan (CRP); and
• contract notification report (CNR).

2.6 DefCARS enables contractors to make a single submission for the initial reports through a Contract Initiation Report (CIR). The SSRO’s reporting guidance on contract reports deals with preparation of the CIR in section 4.

2.7 The SSRO proposes to update its guidance on the CIR as set out at Appendix 2. The changes are intended to:

• Include further definitions, such as the “price the contracting authority is committed to paying”, which contractors are required to report in the CRP following the Single Source Contract (Amendment) Regulations 2019, and “contract price”.
• Clarify who carries out some actions, for example whether it is the contractor, SSRO or the MOD.
• Specify what the contractor should do to complete some fields in DefCARS, including where “yes/no” fields are included in the system to assist contractors to complete their submissions.
• Improve readability, for example by including cross-references and defining abbreviations or acronyms.
• Better explain some DefCARS functionality, such as how it generates annual profile years, and describe what the contractor should expect to see on some pages.

2.8 The changes have been informed by changes to the Regulations, changes made to other parts of the SSRO’s guidance during 2019 and feedback received from contractors in onboarding discussions.

The SSRO seeks input from stakeholders on the proposed guidance at Appendix 2. Feedback would be welcomed on any reporting issues experienced with identifying the price the contracting authority is committed to paying, or with other aspects of completing the initial reports.

3. Consultation

3.1 The consultation period for this set of proposals is Thursday 20 February to Thursday 16 April 2020. Consultation responses should be sent to [email protected]. There is no specified format for response.

3.2 The Reporting and IT sub-group of the SSRO’s Operational Working Group continues to be a key source of input to the SSRO’s reporting guidance and DefCARS. We propose to discuss the proposed changes at the next meeting on Wednesday 26 February 2020. If you would like to speak to us outside of the Reporting and IT sub-group, please contact Simon McCullough at [email protected], or telephone 0203 771 4794.

3.3 Feedback on the consultation process and the final changes the SSRO has decided to implement will be provided to the Reporting and IT sub-group at its meeting in June 2020.

4. Next steps

4.1 The SSRO plans to publish version 8 of its reporting and DefCARS user guidance in June 2020. This will depend on changes in the wider work programme and any other material events, such as introduction of new Regulations.

4.2 The content of each planned guidance update will depend on stakeholder feedback and the timing of any associated DefCARS development. Each release may include additional minor, uncontroversial or urgent changes that have not been the subject of consultation.

5. Appendices

5.1 The following appendices set out the SSRO’s guidance proposals for consultation:

• Appendix 1 – Contract completion date guidance
• Appendix 2 – Contract initiation report guidance