Commentary on Sections Part 2: Single Source Contracts Section 14: Regulations relating to qualifying defence contracts
54.This section identifies the primary contracts which will be subject to Part 2 and permits the Secretary of State to make regulations in relation to them. Such contracts are called qualifying defence contracts (“QDCs”) (sub-contracts of QDCs may themselves be subject to Part 2 - this is dealt with under sections 28 to 30 below). These regulations are to be called single source contract regulations (“SSCRs”) and it is intended that they will come into force no later than 6 April 2015. The date that the first SSCRs come into force is called the “relevant date”.
55.The criteria for a contract to be a QDC are set out in subsections (2) to (5). They are:
56.There are three cases where contracts which meet these criteria will be QDCs:
57.Subsection (7) enables the Secretary of State to exempt contracts that would otherwise be QDCs. This power will be exercised on a case-by-case basis.