Allowable Costs guidance April 2018
The Allowable Costs guidance is statutory guidance, which contractors and the Ministry of Defence must have regard to when determining whether costs are Allowable in single source qualifying defence contracts.
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Details
The SSRO started to review its existing statutory guidance in April 2017 and undertook a programme of engagement with stakeholders, consulting on proposed guidance changes in October and November 2017. We received 12 responses to our consultation, which we have considered and reflected in our final Allowable Costs guidance.
The consultation response document explains the changes we have made to the guidance in response to feedback.
The guidance will apply to qualifying defence contracts and qualifying sub-contracts entered into on and after 1 April 2018, but is being released at this time so that stakeholders can familiarise themselves with it in advance. It will replace the current guidance (published on 1 July 2016) from 1 April 2018.
Please contact us at [email protected] if you require any clarification, advice or further information. The SSRO helpdesk is unable to provide advice on contract specific queries but referrals for an opinion or determination can be made.
The SSRO seeks to review its statutory guidance with any changes being implemented at the same time each year to provide certainty for its stakeholders. We will shortly discuss priorities for the next review with our stakeholders with the aim of providing any further updates by 1 April 2019 should they be required. Any changes to this timetable will be communicated on this page.