Part 13: General Schedule 10: Single source defence contracts Qualifying sub-contracts
Section 29(1) of the DRA provides that SSCRs may require primary contractors to assess whether proposed sub-contracts would be a QSC, and therefore subject to Part 2 of the DRA and the SSCRs. Section 29(2) makes provision for what SSCRs may contain in relation to the records and reporting of an assessment by a primary contractor that a proposed sub-contract, if entered into, would be a QSC.  When the contractor makes a positive assessment (i.e. that the prospective sub-contract meets the conditions to be a QSC) then, under subsection (2 )(b), the contractor must notify the Secretary of State, an authorised person and the prospective sub-contractor of that assessment.  Section 29(3) and (4) make equivalent provision in respect of prospective QSCs.
	Paragraphs 15(2) and (3) amends section 29 of the DRA by inserting new subsections (2)(c) and (4)(c) to provide the Secretary of State with a power to make SSCRs to provide that if a primary contractor or a prospective primary contractor makes a negative assessment (i.e. that the prospective sub-contract does not meet the conditions to be a QSC) then the contractor must notify the Secretary of State, an authorised person and the prospective sub-contractor of that assessment and give reasons for that assessment.
	Section 30(4) of the DRA provides that SSCRs may make provision for "the sub-contractor to give notice to the SSRO that, in the sub-contractor's opinion, this Part and the regulations should cease to apply to the qualifying sub-contract".
	There is no provision for the primary contractor to give equivalent notice that in its opinion the contract has ceased to be a QSC. The sub-contractor may be unaware of a change in circumstances that render the sub-contract a non-QSC, because of relevant information that may only be known to the contracting authority, so it may be necessary for the primary contractor to give such notice.
	Paragraph 16 amends section 30(4)(a) of the DRA.  This amendment will provide the Secretary of State with a power to make SSCRs to provide that the primary contractor may give notice to the SSRO that in its opinion Part 2 of the DRA and the SSCRs should cease to apply to the QSC.