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Ministry of Defence (the Department) requires high-quality equipment to fulfil its operational objectives, and support arrangements to maintain this equipment. The Department has found it more difficult to secure value for money from procurement where there is no competition to assure it is paying the best possible price. An independent review commissioned by the Department found that the system put in place in the 1960s to review acceptable levels of cost and profit on non-competitive contracts was outdated and ineffective. In response, the government introduced the statutory Single Source Contract Regulations (the Regulations) via the Defence Reform Act 2014.
