Commentary on Sections Part 2: Single Source Contracts Section 19: Rates etc relevant to determining contract profit rate
67.Certain standard rates will be used in the determination of the CPR. These are:
68.All of these standard rates will be set annually by the Secretary of State (subsection (1)), and will be set for each financial year (beginning on 1 April).
69.To support the Secretary of State in determining these standard rates, the SSRO has a duty to recommend these annually to the Secretary of State (subsection (2)). In making its assessment, the SSRO must have regard to guidance issued by the Secretary of State (subsection (3)(b)).
70.Having received the assessment of the SSRO, subsection (4) requires the Secretary of State to publish the rates in the London Gazette no later than 15 March of the preceding financial year, along with (subsections (5) and (6)) reasons for any differences from the SSRO’s assessment.