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Defence Reform Act 2014

Section 28: Qualifying sub-contracts

104.This section permits the SSCRs to make provision in relation to qualifying sub-contracts, and sets the conditions that must be met in order for a sub-contract to be a qualifying sub-contract. A sub-contract will be a qualifying sub-contract if it meets all of the following conditions:


it involves provision for the purposes of another qualifying contract – subsection (3)(a) relates to sub-contracts entered into directly under a primary contract and subsection (4)(a) relates to further sub-contracts entered into under any other qualifying sub-contract (to allow for flow-down to more than the first tier of sub-contractors);


it is not the result of a competitive process. The SSCRs will make provision for determining whether the award of the contract is the result of a competitive process (which will mean resulting from a transparent procurement process in which it is reasonably considered that more than one offer will be capable of acceptance);


it is of or above a value to be specified in the SSCRs (which will initially be £25m); and


it meets any other requirements that may be specified in the SSCRs.

105.As with primary contracts (see section 14(7)), the Secretary of State may direct that a sub-contract is not a qualifying sub-contract even though it otherwise meets the conditions for being a qualifying sub-contract (subsection (6)). This power will be exercised on a case by case basis.

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