OREANDA-NEWS. Section 19(2) of the Act requires the SSRO to provide the Secretary of State with its assessment of the appropriate baseline profit rate, SSRO funding adjustment and capital servicing rates for that year.

When publishing its updated methodology for calculating the single baseline profit rate for 2016/17 the SSRO stated that it would work towards having multiple profit rates in future, for adoption first in 2017/18.

Regulation 11(5) requires the SSRO funding adjustment to be zero until 31 March 2017 and, on or after 1 April 2017, the rate published in the London Gazette in accordance with section 19(4) of the Act.

The SSRO has published a consultation paper covering the planned introduction of multiple baseline profit rates and the SSRO funding adjustment.

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. The consultation will close on 18 August 2016. Following our consideration of responses to the consultation, we will publish the final guidance document by the end of October 2016.