# The Single Source Contract (Amendment) Regulations 2026, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations amend the Single Source Contract Regulations 2014 (S.I. 2014/3337, amended by S.I. 2024/420) (the “2014 Regulations”).
Regulation 2 amends regulation 11 of the 2014 Regulations, which sets out the steps to be followed by the Secretary of State in determining a contract profit rate for a qualifying defence contract under those Regulations. Regulation 2 amends regulation 11 to raise the permissible incentive adjustment from two to ten percentage points. It further amends regulation 11 such that the incentive adjustment may only be used in respect of outcomes which are objectively verifiable, and which relate to relevant provisions of the contract in question.
Regulation 3 amends regulation 51 of the 2014 Regulations in order to add the determination of an incentive adjustment to the list of matters on which the Single Source Regulations Office is required to give an opinion on a reference made to it by a person mentioned in section 35(2) of the Defence Reform Act 2014.
Regulation 4 amends regulation 65 of the 2014 Regulations, so that for qualifying sub-contracts the permissible incentive adjustment remains at two percentage points, and continues to be determined by the contracting authority.
A De Minimis Assessment of the effect that this instrument will have on the costs of business and the voluntary sector is published with the Explanatory Memorandum alongside the Statutory Instrument on www.legislation.gov.uk.

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Source: https://www.legislation.gov.uk/uksi/2026/510/note (the official version)
Page: https://openlegislation.uk/single-source-contract-amendment-regulations-2026/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.