Part 13: General Schedule 10: Single source defence contracts Reports
Section 25(1) of the DRA provides that the SSCRs must require a "designated person" to provide reports referred to in section 25(2) to the Secretary of State and the SSRO on overhead costs and forward planning issues, as well as matters specified in the SSCRs.  In relation to groups of companies, the designated person is the "ultimate parent undertaking" (subsection 25(3)(a)).  Otherwise, the designated person is "P", who is a party to one or more QDCs.  The purpose of such reports is to provide the Secretary of State with a long-term view of key suppliers’ capacity, and overheads relevant to the MOD’s current and future single source requirements.
	The obligation to provide reports under section 25 applies for a financial year where the designated person, or any person with whom the designated person is associated, has one or more ongoing QDCs above a specified value in which there are outstanding obligations to provide goods, works or services (section 25(1) and (5)).
	Paragraph 13(2) amends section 25 of the DRA by substituting subsection (3)(a).  This amendment will provide the Secretary of State with a power to make SSCRs to allow the Secretary of State to agree with the party which would otherwise be required to provide the report mentioned in section 25(2) that the report may instead be provided by another undertaking within the group.  If such agreement cannot be reached the default position is that the report is to be provided by the ultimate parent undertaking.
	Paragraph 13(3) amends section 25 of the DRA to insert subsection (8A).  Subsection (8A) amends the definition of "financial year" for the purposes of section 25 to enable the Secretary of State to agree with a contractor that the reports required by SSCRs made under section 25 may be related to the designated person’s financial year rather than the financial year as defined in the Act as unamended.