Part 2

Single source contracts

Qualifying defence contracts

Regulations relating to qualifying defence contracts
14
1
The Secretary of State may by regulations under this Part (“single source contract regulations”) make provision in relation to qualifying defence contracts.
2
For the purposes of this Part, a contract is a “qualifying defence contract” if—
a
it is a contract under which the Secretary of State procures goods, works or services wholly or substantially for defence purposes from another person (a “primary contractor”),
b
the value of the contract is of or above the amount specified in single source contract regulations,
c
the contract does not fall within a description specified in the regulations, and
d
subsection (3), (4) or (5) applies to the contract.
3
This subsection applies to a contract if—
a
the contract is entered into on or after the relevant date, and
b
the award of the contract is not the result of a competitive process.
4
This subsection applies to a contract if—
a
the contract was entered into before the relevant date,
b
the award of the contract was not the result of a competitive process,
c
the contract is amended on or after that date, and
d
in amending the contract, the Secretary of State and the primary contractor agree that it is to be a qualifying defence contract.
5
This subsection applies to a contract, whether entered into before or after the relevant date, if—
a
the award of the contract is the result of a competitive process,
b
the contract is amended on or after the relevant date,
c
the amendment is not the result of a competitive process, and
d
in amending the contract, the Secretary of State and the primary contractor agree that it is to be a qualifying defence contract.
5A
Single source contract regulations may specify circumstances in which a contract entered into by the Secretary of State with a primary contractor is or is not to be treated as amending an existing contract between those parties for the purposes of this section.
6
Single source contract regulations must make provision for determining whether the award, or amendment, of a contract is the result of a competitive process.
7
The Secretary of State may direct that a particular contract to which subsection (3) applies is not a qualifying defence contract even though the contract otherwise meets the requirements of subsection (2).
8
In this section, “defence purposes” has the meaning given by the regulations.
8A
The regulations may also specify when a contract is to be treated as substantially for defence purposes.
9
In this Part—
a
“relevant date” means the date on which the first single source contract regulations come into force;
b
references to “single source contract regulations” are to be read in accordance with subsection (1);
c
references to a “primary contractor” are to be read in accordance with subsection (2)(a).
S. 14 in force at 14.7.2014 for specified purposes by S.I. 2014/1751, art. 4(a)
S. 14 in force at 5.12.2014 in so far as not already in force by S.I. 2014/3162, art. 3(a)
S. 14(8A) inserted (19.1.2024) by Procurement Act 2023 (c. 54), s. 127(2), Sch. 10 para. 2(4); S.I. 2024/61, reg. 2(1)(b)(ii) (with reg. 3)
S. 14(5A) inserted (19.1.2024) by Procurement Act 2023 (c. 54), s. 127(2), Sch. 10 para. 2(3); S.I. 2024/61, reg. 2(1)(b)(ii) (with reg. 3)
Words in s. 14(2)(a) inserted (19.1.2024) by Procurement Act 2023 (c. 54), s. 127(2), Sch. 10 para. 2(2); S.I. 2024/61, reg. 2(1)(b)(ii) (with reg. 3)