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The Single Source Regulations Office 

The primary functions of the the Single Source Regulations Office (SSRO) as set out in the Defence Reform Act are to support the regulatory framework, advise the Secretary of State on setting key rates to be used in pricing contracts (including the Baseline Profit Rate), monitor single source procurement, undertake analysis, and keep the single source contract pricing regulatory framework under review and recommend changes to it.

Setting the Baseline Profit Rate

A key function of Single Source Regulations Office is to recommend (in January of each year) to the Secretary of State the Baseline Profit Rate (BPR) to form the starting point of calculating the Contract Profit Rate. Once accepted by the Secretary of State the Baseline Profit Rate is published by mid-March and used in the pricing of single source contracts starting in the coming financial year i.e. from the 1st April of the same year.