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SSRO Allowable Costs Guidance 2018 (with effect from April 2018)

The SSRO has published on the 1st February 2018 its revised Allowable Costs Guidance following its recent consultation. This statutory cost guidance has to be utilised for UK MoD qualifying single source contracts (and qualifying subcontracts) entered into with effective from 1st April 2018.

A key feature of the revised guidance is a greater recognition by the SSRO of the potential benefits to the UK MoD of the contractor's non-UK MoD sales and marketing efforts that could for example increase the contractor's cost recovery base and hence reduce the cost recovery rate charged to the UK MoD under its single source contract and as a result the SSRO has introduced a fairer approach to the contractor's required justification of the benefits to the UK MoD of the contractors sales and marketing costs.