{
  "url": "https://openlegislation.uk/single-source-contract-regulations-2014/regulation-26",
  "json_url": "https://openlegislation.uk/single-source-contract-regulations-2014/regulation-26.json",
  "legislation": "uksi/2014/3337",
  "legislation_title": "The Single Source Contract Regulations 2014",
  "legislation_url": "https://openlegislation.uk/single-source-contract-regulations-2014",
  "path": "regulation/26",
  "kind": "regulation",
  "number": "26",
  "heading": "Quarterly contract report",
  "text": "(1) Subject to paragraphs (2) to (5), the primary contractor must provide a quarterly contract report for the qualifying defence contract within one month of the end of each calendar quarter from the initial reporting date until the contract completion date.\n(2) No report is required for the calendar quarter in which the initial reporting date falls.\n(3) The first report must be for the period from the initial reporting date to the end of the next calendar quarter.\n(4) No report is required for the calendar quarter in which the contract completion date falls.\n(5) No report is required for a contract if the value of the contract is less than £50,000,000.\n(6) Except where the price of the contract is determined entirely in accordance with a contract pricing method under which costs are indistinguishable from profits, the report must contain the following information—\n(a) an annual profile (or, if the contractor is of the view that it is not possible to express these matters in an annual profile, the total amount) of the following matters which have been, or are expected to be, taken into account in determining the contract price—\n(i) any risk contingency element included in the allowable costs;\n(ii) planned amounts of profit, excluding any amount resulting from an adjustment determined under step 3 of regulation 11; and\n(iii) the maximum amount of profit resulting from an adjustment determined under step 3 of regulation 11;\n(b) an annual profile of the estimated costs (split by the contractor reporting structure) at the time of agreement;\n(c) an annual profile (or, if the contractor is of the view that it is not possible to express these matters in an annual profile, the total amount) of the following matters—\n(i) any risk contingency element,\n(ii) planned amounts of profit, excluding any amount resulting from an adjustment determined under step 3 of regulation 11, and\n(iii) the expected maximum amount of profit resulting from an adjustment determined under step 3 of regulation 11,\nthat reflect the costs already incurred and the forecast costs which are expected to be incurred, indicating for each year whether those costs have been incurred, are forecast, or a combination of both;\n(d) an annual profile of the costs already incurred and the forecast costs which are expected to be incurred, split by the contractor reporting structure and indicating for each year whether those costs have been incurred, are forecast, or a combination of both;\n(e) a breakdown of the costs already incurred and the forecast costs by reference to the calendar quarters of each of—\n(i) the financial year in which the calendar quarter to which the report relates falls,\n(ii) the previous financial year, and\n(iii) the next financial year,\nsplit by the contractor reporting structure;\n(f) a quantified analysis of the causes of variance (explaining not less than 90% of the total variance) between any estimated costs used to determine the contract price and the total actual and forecast costs;\n(g) a forecast of any TCIF adjustment or any final price adjustment (regulation 16) which the contractor expects will be made;\n(h) a description of any event that has occurred, or circumstances which have arisen, since the contract was entered into, that have had or are likely to have a material effect in relation to the contract, including—\n(i) the date on which the contractor became aware of the event or circumstances;\n(ii) whether the event or circumstances are covered by any contingency element of the contract price;\n(iii) the effect that the event or circumstances have had on the costs already incurred; and\n(iv) the forecast effect that the event or circumstances will have on the forecast costs which it is expected will be incurred;\n(i) a list of—\n(i) all delivery milestones set out in the contract;\n(ii) where the contract sets an expected date for a delivery milestone to be completed, that date; and\n(iii) the actual or expected delivery date for each delivery milestone;\n(j) a description of any actual or intended sub-contracts which the primary contractor has entered into, or intends to enter into, for the purposes of enabling it to perform its obligations under the qualifying defence contract (including the total proportion of the contract price of the qualifying defence contract which the contractor expects to sub-contract); and\n(k) in relation to each such sub-contract into which the primary contractor has entered in the period covered by the report, or intends to enter in the calendar quarter following the period covered by the report, and which has or is expected to have a value of not less than £1,000,000 ...—\n(i) if the sub-contractor is a registered company, its registered name and company number, and the address of its registered office;\n(ii) if the sub-contractor is not a registered company, its name;\n(iii) whether the sub-contractor is associated with the primary contractor;\n(iv) whether the sub-contractor is an SME;\n(v) a brief description of the goods, works or services that will be provided under the sub-contract;\n(vi) the date on which the sub-contract was, or is expected to be, entered into;\n(vii) the contract completion date (or, if that date is not known, the expected contract completion date);\n(viii) the (actual or estimated) price payable under the sub-contract; and\n(ix) if an assessment has been made under regulation 61(1) or (4), the outcome of that assessment;\n(l) in relation to each sub-contract which the primary contractor has entered into, or intends to enter into, and which has or is expected to have a value of not less than £15,000,000, if the primary contractor has made an assessment that the contract would not be a qualifying sub-contract—\n(i) the outcome of the negative assessment;\n(ii) confirmation of whether the award of the contract is not, or would not be, the result of a competitive process; and\n(iii) confirmation of whether the contract enables the performance of contracts other than a qualifying defence contract or qualifying sub-contract.\n(6A) Where the contract contains a component which was not priced in accordance with a contract pricing method under which costs are indistinguishable from profits, the report must also contain the relevant component information.\n(6B) Where a component mentioned in paragraph (6A) has a value of less than £50,000,000, the report need only contain the relevant component information—\n(a) on each of—\n(i) a date agreed between the primary contractor and the Secretary of State at the time of agreement which is no more than five years following the time of agreement; and\n(ii) such further dates before the expected contract completion date as may be agreed between them, each date to be no more than five years after the date agreed under paragraph (i); or\n(b) if no agreement is made under sub-paragraph (a)—\n(i) on the date which is three years after the last day of the calendar quarter during which the initial reporting date fell; and\n(ii) on the date which is each third anniversary of that date.\n(6C) In paragraphs (6A) and (6B), “relevant component information” means the following information in relation to the component so far as it is different from the information provided in relation to the contract in accordance with paragraph (6)—\n(a) an annual profile (or, if the contractor is of the view that it is not possible to express these matters in an annual profile, the total amount) of the following matters which have been, or are expected to be, taken into account in determining the contract price of the component—\n(i) any risk contingency element included in the allowable costs of the component;\n(ii) planned amounts of profit in respect of the component, excluding any amount resulting from an adjustment determined under step 3 of regulation 11; and\n(iii) the maximum amount of profit in respect of the component resulting from an adjustment determined under step 3 of regulation 11;\n(b) an annual profile of the estimated costs of the component (split by the contractor reporting structure) at the time of agreement;\n(c) an annual profile (or, if the contractor is of the view that it is not possible to express these matters in an annual profile, the total amount) of the following matters—\n(i) any risk contingency element in respect of the component;\n(ii) planned amounts of profit in respect of the component, excluding any amount resulting from an adjustment determined under step 3 of regulation 11; and\n(iii) the expected maximum amount of profit in respect of the component resulting from an adjustment determined under step 3 of regulation 11,\nthat reflect the costs already incurred in respect of the component and the forecast costs which are expected to be incurred in respect of the component, indicating for each year whether those costs have been incurred, are forecast, or a combination of both;\n(d) an annual profile of the costs already incurred in respect of the component and the forecast costs which are expected to be incurred in respect of the component, split by the contractor reporting structure and indicating for each year whether those costs have been incurred, are forecast, or a combination of both;\n(e) a breakdown of the costs already incurred in respect of the component and the forecast costs of the component by reference to the calendar quarters of each of—\n(i) the financial year in which the calendar quarter to which the report relates falls;\n(ii) the previous financial year; and\n(iii) the next financial year,\nsplit by the contractor reporting structure;\n(f) a quantified analysis of the causes of variance (explaining not less than 90% of the total variance) between any estimated costs used to determine the contract price for the component and the total actual and forecast costs of the component;\n(g) a forecast of any TCIF adjustment or any final price adjustment (regulation 16) which the contractor expects will be made in respect of the component;\n(h) a description of any event that has occurred, or circumstances which have arisen, since the component was entered into, that have had or are likely to have a material effect in relation to the component, including—\n(i) the date on which the contractor became aware of the event or circumstances;\n(ii) whether the event or circumstances are covered by any contingency element of the contract price of the component;\n(iii) the effect that the event or circumstances have had on the costs already incurred in respect of the component; and\n(iv) the forecast effect that the event or circumstances will have on the forecast costs of the component which it is expected will be incurred; and\n(i) an explanation of whether, and if so how, each delivery milestone set out in the contract relates to the component.\n(6D) Where the price of the contract or a component of the contract is determined entirely in accordance with a contract pricing method under which costs are indistinguishable from profits, the report must contain the following information in relation to the contract or component—\n(a) the current estimate of the price; and\n(b) details of any variance between the current estimate of the price and previous estimates of the price, and the reasons for that variance.\n(7) In this regulation, “contractor reporting structure” means the breakdown of contract or component costs into the categories used by the contractor for its own internal contract management purposes.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in reg. 26(6) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 30(a)(i) (with reg. 44(2))"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Word in reg. 26(6)(a)(ii) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 30(a)(ii) (with reg. 44(2))"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Word in reg. 26(6)(a)(iii) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 30(a)(ii) (with reg. 44(2))"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Word in reg. 26(6)(c)(ii) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 30(a)(ii) (with reg. 44(2))"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Word in reg. 26(6)(c)(iii) substituted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 30(a)(ii) (with reg. 44(2))"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in reg. 26(6)(j) substituted (1.9.2019) by The Single Source Contract (Amendment) Regulations 2019 (S.I. 2019/1106), regs. 1, 10(2)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in reg. 26(6)(k) omitted (1.9.2019) by virtue of The Single Source Contract (Amendment) Regulations 2019 (S.I. 2019/1106), regs. 1, 10(3)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Reg. 26(6)(l) inserted (1.9.2019) by The Single Source Contract (Amendment) Regulations 2019 (S.I. 2019/1106), regs. 1, 10(4)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Reg. 26(6A)-(6D) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 30(b) (with reg. 44(2))"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in reg. 26(7) inserted (1.4.2024) by The Single Source Contract (Amendment) Regulations 2024 (S.I. 2024/420), regs. 1(2), 30(c) (with reg. 44(2))"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2014/3337/regulation/26",
    "retrieved_at": "2026-10-28T23:53:13.107571+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."
}