{
  "url": "https://openlegislation.uk/draft-single-source-contract-regulations-2014/regulation-32",
  "json_url": "https://openlegislation.uk/draft-single-source-contract-regulations-2014/regulation-32.json",
  "legislation": "ukdsi/2014/9780111122440",
  "legislation_title": "The Single Source Contract Regulations 2014",
  "legislation_url": "https://openlegislation.uk/draft-single-source-contract-regulations-2014",
  "path": "regulation/32",
  "kind": "regulation",
  "number": "32",
  "heading": "Interpretation",
  "text": "(1) In this Part, “QBU” (qualifying business unit) means—\n(a) a unit to which paragraph (3) applies in respect of a relevant period;\n(b) an undertaking to which paragraph (4) applies in respect of a relevant period; or\n(c) a group of undertakings to which paragraph (5) applies in respect of a relevant period.\n(2) A period is relevant if it ends on a day falling within the relevant financial year.\n(3) This paragraph applies to a unit in respect of any period if—\n(a) the unit carries on any activities for the purposes of an undertaking which is, or is associated with, the designated person;\n(b) separate financial accounting statements are produced in respect of it for that period;\n(c) in that period it provides anything for the purposes of any qualifying defence contract or qualifying sub-contract to which the designated person, or any person associated with the designated person, is party; and\n(d) the total value of what it provides for those purposes in that period is at least £10,000,000.\n(4) This paragraph applies to an undertaking in respect of any period if—\n(a) no unit is a QBU in respect of that period by virtue of carrying on activities for the purposes of that undertaking;\n(b) the undertaking is, or is associated with, the designated person;\n(c) financial accounting statements are produced in respect of it for that period;\n(d) in that period it provides anything for the purposes of any qualifying defence contract or qualifying sub-contract to which the designated person, or any person associated with the designated person, is party; and\n(e) the total value of what it provides for those purposes in that period is at least £10,000,000.\n(5) This paragraph applies to a group of undertakings in respect of any period if—\n(a) no unit is a QBU in respect of that period by virtue of carrying on activities for the purposes of any of those undertakings;\n(b) none of those undertakings is a QBU in respect of that period;\n(c) each of those undertakings either is, or is associated with, the designated person;\n(d) a single set of financial accounting statements is produced in respect of the group for that period, separate from those of the parent undertakings of any of those undertakings;\n(e) in that period the group provides anything for the purposes of any qualifying defence contract or qualifying sub-contract to which the designated person, or any person associated with the designated person, is party; and\n(f) the total value of what the group provides for those purposes in that period is at least £10,000,000.\n(6) In this Part—\n(a) “defence contract” means—\n(i) any contract to which the Secretary of State for Defence is party; or\n(ii) any contract entered into for the purpose of enabling a contract within paragraph (i), or this paragraph, to be fulfilled;\n(b) “the designated person” means—\n(i) where the person mentioned in regulation 31(1) (“P”) is associated with one or more other persons, the ultimate parent undertaking in relation to P and those other persons,\n(ii) otherwise, P,\nand section 25(9) (definition of “ultimate parent undertaking”) applies for the purposes of this sub-paragraph as it applies for the purposes of section 25(3);\n(c) “direct costs” means costs which have not been calculated using a cost recovery rate;\n(d) “pricing QBU” means a QBU in relation to which a cost recovery rate has been used for determining the price payable under any contract mentioned in paragraph (3)(c), (4)(d) or (5)(e), as the case may be;\n(e) “the relevant accounting period”, in relation to a QBU, means the period in respect of which paragraph (3), (4) or (5) applies to the QBU.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2014/9780111122440/regulation/32",
    "retrieved_at": "2026-10-30T15:11:52.928990+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}