has given the firms, currently anonymous, until January to stop extra charges or face being named in its annual report.
scrutinise deals where there is just one bidder for a lucrative defence contract.
will play its role in making information about single source procurement more publically available and transparent.
In its first opinion, the SSRO
challenged charges of labour inflation at 6 million and learning curve of 12.
has in its new consultation suggested six different categories for single source contracts.
On the first of the issues addressed by todays ruling, the SSRO
decided that Rolls Royce had not established a clear link between some of the costs being claimed and the contract in question.
Marcine Waterman, Chief Executive of the SSRO
, said: Setting a fair baseline profit rate and being clear about what adjustments can be made is critical to maintaining the credibility of single source procurement.
Clive Tucker said: The SSRO
has quickly become an important organisation which is generating efficiency savings for investment elsewhere in defence capability.
Explaining the changes, Jeremy Newman, Chair of the SSRO
The final methodology document is available on the SSRO
Explaining the proposals, Jeremy Newman, Chair of the SSRO
, said: The current approach provides a single baseline profit rate for every type of defence work.
The Defence Reform Act 2014 gave MOD the power to establish the SSRO
to ensure best value for money for the taxpayer as well as a fair price for companies.