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Defence Reform Act 2014

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This is the original version (as it was originally enacted).

31Compliance notice

This section has no associated Explanatory Notes

(1)The Secretary of State may give a person a compliance notice if the Secretary of State thinks—

(a)that the person has contravened this section, and

(b)that there are steps that can be taken by the person to remedy the contravention.

(2)A compliance notice is a notice which—

(a)specifies those steps, and

(b)directs the person to take them.

(3)A person (“P”) contravenes this section if—

(a)P fails to comply with one or more specified requirements imposed by virtue of—

(i)section 23 (duty to keep accounting and other records), or

(ii)section 24 or 25 (reports),

(b)P provides a specified report under section 24 that is misleading in a material respect and P—

(i)knows that the report is misleading, or

(ii)is reckless as to whether the report is misleading,

(c)P fails to comply with the duty under section 26 (duty to notify Secretary of State of occurrence etc of a relevant event),

(d)in circumstances where P is required to make an assessment under section 29(1) or (3) in respect of a proposed contract, P fails to make such an assessment,

(e)P makes a negative assessment under section 29(1) or (3) in respect of a proposed contract and the Secretary of State believes that that assessment is incorrect, or

(f)in circumstances where P is required to give the notice mentioned in section 29(2)(b) or (4)(b) in respect of a proposed contract, P fails to give such a notice.

(4)In subsection (3)

(a)“specified” means specified in single source contract regulations;

(b)“negative assessment” means an assessment that the proposed contract would not be a qualifying sub-contract if it (and, in a case within section 29(3), the proposed qualifying defence contract) were entered into.

(5)A compliance notice must be given before the end of the period specified in single source contract regulations.

(6)A compliance notice must—

(a)give details of the contravention,

(b)specify the period within which the steps specified in the notice must be taken, and

(c)state that, if P fails to take those steps, the Secretary of State may give P a penalty notice under section 32.

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