CASE OF A.H. v. FINLAND

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<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-1"><num><b>Part 1</b></num><heading>Defence procurement</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-defence-procurement-arrangements"><heading><i>Defence procurement arrangements</i></heading><section eId="section-1"><num>1</num><heading>Arrangements for providing defence procurement services</heading><subsection eId="section-1-1"><num>(1)</num><intro><p>This Part applies if the Secretary of State makes arrangements—</p></intro><level class="para1" eId="section-1-1-a"><num>(a)</num><content><p>for a company to provide defence procurement services to the Secretary of State under contract, and</p></content></level><level class="para1" eId="section-1-1-b"><num>(b)</num><intro><p>for that or another company—</p></intro><level class="para2" eId="section-1-1-b-i"><num>(i)</num><content><p>to acquire from the Secretary of State rights in or over premises and property used for the purposes of DE&amp;S, and</p></content></level><level class="para2" eId="section-1-1-b-ii"><num>(ii)</num><content><p>to become the employer of some or all of the persons who are employed in the civil service of the State in or in connection with DE&amp;S immediately before the time the company is to become their employer,</p></content></level><wrapUp><p>with a view to those premises, that property and the services of those employees being made available for providing the defence procurement services.</p></wrapUp></level></subsection><subsection eId="section-1-2"><num>(2)</num><intro><p>This Part also applies if—</p></intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content><p>the Secretary of State makes arrangements (“<term refersTo="#term-the-new-arrangements" eId="term-the-new-arrangements">the new arrangements</term>”) for a company to provide defence procurement services to the Secretary of State under contract, which may include arrangements for another company to make premises, property and the services of employees available for providing the defence procurement services, and</p></content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><content><p>the new arrangements are the successor to arrangements mentioned in subsection (1) or other arrangements mentioned in this subsection (“the old arrangements”).</p></content></level></subsection><subsection eId="section-1-3"><num>(3)</num><intro><p>The new arrangements are “the successor” to the old arrangements if—</p></intro><level class="para1" eId="section-1-3-a"><num>(a)</num><content><p>a company mentioned in subsection (2)(a) is or was a contractor under the old arrangements, or</p></content></level><level class="para1" eId="section-1-3-b"><num>(b)</num><content><p>for the purposes of the new arrangements, property, rights or liabilities of a company which is or was a contractor under the old arrangements are to be or have been transferred, by virtue of the old arrangements or by a transfer scheme under section 10, to a company mentioned in subsection (2)(a).</p></content></level></subsection><subsection eId="section-1-4"><num>(4)</num><intro><p>The new arrangements are also “the successor” to the old arrangements if—</p></intro><level class="para1" eId="section-1-4-a"><num>(a)</num><content><p>property, rights or liabilities of a contractor under the old arrangements have been transferred, by virtue of those arrangements or by a transfer scheme under section 10, to the Secretary of State, and</p></content></level><level class="para1" eId="section-1-4-b"><num>(b)</num><intro><p>the new arrangements provide for a company mentioned in subsection (2)(a)—</p></intro><level class="para2" eId="section-1-4-b-i"><num>(i)</num><content><p>to acquire from the Secretary of State rights in or over premises and property used for the purposes of the departmental defence procurement undertaking, and</p></content></level><level class="para2" eId="section-1-4-b-ii"><num>(ii)</num><content><p>to become the employer of some or all of the persons who are employed in the civil service of the State in or in connection with that undertaking immediately before the time the company is to become their employer,</p></content></level><wrapUp><p>with a view to those premises, that property and the services of those employees being made available for providing the defence procurement services.</p></wrapUp></level></subsection><subsection eId="section-1-5"><num>(5)</num><content><p>Subsections (1)(b) and (4)(b) apply whether the arrangements provide for the company to acquire rights in or over premises and property, or to become the employer of persons, on one, or on more than one, occasion.</p></content></subsection><subsection eId="section-1-6"><num>(6)</num><content><p>References to a company in subsection (2) include, in particular, a publicly owned company (and references to a company in the other provisions of this Part are to be read accordingly).</p></content></subsection><subsection eId="section-1-7"><num>(7)</num><content><p>Arrangements mentioned in this section may provide for a contractor to exercise to any extent a discretion of the Secretary of State in connection with the exercise by the Secretary of State of a function involving defence procurement.</p></content></subsection><subsection eId="section-1-8"><num>(8)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-contractor" eId="term-contractor">contractor</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a company—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>which provides defence procurement services to the Secretary of State under contract by virtue of arrangements mentioned in this section (“relevant arrangements”), or</p></item><item><num>(ii)</num><p>in relation to which relevant arrangements have been made for it to provide defence procurement services but which is not yet doing so, or</p></item></blockList></content></level><level class="para1"><num>(b)</num><content><p>a company—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>which, by making premises, property and the services of employees available, enables defence procurement services to be provided to the Secretary of State under contract by virtue of relevant arrangements, or</p></item><item><num>(ii)</num><p>in relation to which relevant arrangements have been made for it to make premises, property and the services of employees available for enabling defence procurement services to be provided but which is not yet making those things available;</p></item></blockList></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-des" eId="term-des">DE&amp;S</term>” means the undertaking carried on by the Secretary of State and known as Defence Equipment and Support;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-defence-procurement" eId="term-defence-procurement">defence procurement</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>the acquisition of anything (including support or logistics services) required for defence purposes,</p></content></level><level class="para1"><num>(b)</num><content><p>the management, monitoring or enforcement of contracts entered into for the acquisition of anything so required, and</p></content></level><level class="para1"><num>(c)</num><content><p>related support or logistics;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-defence-procurement-services" eId="term-defence-procurement-services">defence procurement services</term>” means services relating to defence procurement;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-defence-purposes" eId="term-defence-purposes">defence purposes</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>the purposes of defence (whether or not of the United Kingdom) or policing, or</p></content></level><level class="para1"><num>(b)</num><content><p>related purposes;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-departmental-defence-procurement-undertaking" eId="term-the-departmental-defence-procurement-undertaking">the departmental defence procurement undertaking</term>” means any undertaking carried on by the Secretary of State for the purposes of defence procurement after arrangements mentioned in subsection (1) have come to an end.</p></content></hcontainer></subsection></section><section eId="section-2"><num>2</num><heading>Financial assistance</heading><subsection eId="section-2-1"><num>(1)</num><content><p>The Secretary of State may give financial assistance to a contractor.</p></content></subsection><subsection eId="section-2-2"><num>(2)</num><content><p>The financial assistance may be given on terms and conditions that the Secretary of State thinks appropriate.</p></content></subsection><subsection eId="section-2-3"><num>(3)</num><content><p>“<term refersTo="#term-financial-assistance" eId="term-financial-assistance">Financial assistance</term>” means loans, guarantees or indemnities, or any other kind of financial assistance (actual or contingent).</p></content></subsection></section><section eId="section-3"><num>3</num><heading>Financial claims against contractors or former contractors</heading><subsection eId="section-3-1"><num>(1)</num><content><p>If a financial claim is brought in a court in the United Kingdom or elsewhere against a company which is, or has been, a contractor, any liability of the company resulting from the claim is transferred to the Ministry of Defence.</p></content></subsection><subsection eId="section-3-2"><num>(2)</num><content><p>The Secretary of State may make payments for the purpose of settling any liability of the Ministry of Defence that may arise, or has arisen, under this section.</p></content></subsection><subsection eId="section-3-3"><num>(3)</num><content><p>A company which is, or has been, a contractor must provide the Secretary of State with any assistance that the Secretary of State reasonably requires in connection with a financial claim that may be, or has been, brought against the company (including in connection with any appeal or further appeal in relation to the claim).</p></content></subsection><subsection eId="section-3-4"><num>(4)</num><intro><p>The assistance that a company may be required to provide includes in particular—</p></intro><level class="para1" eId="section-3-4-a"><num>(a)</num><content><p>providing documents, other information or explanations;</p></content></level><level class="para1" eId="section-3-4-b"><num>(b)</num><content><p>providing access to evidence;</p></content></level><level class="para1" eId="section-3-4-c"><num>(c)</num><content><p>making employees available for the purposes of court proceedings.</p></content></level></subsection><subsection eId="section-3-5"><num>(5)</num><content><p>An obligation imposed on a company under subsection (3) is enforceable as if contained in a contract between the company and the Secretary of State.</p></content></subsection><subsection eId="section-3-6"><num>(6)</num><intro><p>For the purposes of this section, a claim is a “financial claim” to the extent that—</p></intro><level class="para1" eId="section-3-6-a"><num>(a)</num><content><p>it is a claim for damages or any other claim for a sum of money,</p></content></level><level class="para1" eId="section-3-6-b"><num>(b)</num><content><p>it is brought by a person other than an excluded person, and</p></content></level><level class="para1" eId="section-3-6-c"><num>(c)</num><content><p>it is not an excluded claim.</p></content></level></subsection><subsection eId="section-3-7"><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-excluded-person" eId="term-excluded-person">excluded person</term>”, in relation to a claim against a company, means—</p></intro><level class="para1"><num>(a)</num><content><p>another company which is, or has been, a contractor, or</p></content></level><level class="para1"><num>(b)</num><content><p>a Minister of the Crown or Government department;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-excluded-claim" eId="term-excluded-claim">excluded claim</term>”, in relation to a claim against a company, means a claim which relates to—</p></intro><level class="para1"><num>(a)</num><content><p>services provided by the company otherwise than to the Secretary of State for Defence,</p></content></level><level class="para1"><num>(b)</num><content><p>a contract of employment to which the company is party,</p></content></level><level class="para1"><num>(c)</num><content><p>any contract (other than a contract of employment) entered into by the company for the purpose of enabling it to provide services,</p></content></level><level class="para1"><num>(d)</num><content><p>any health and safety obligation of the company, or</p></content></level><level class="para1"><num>(e)</num><content><p>anything done or omitted to be done by the company before it became, or after it ceased to be, a contractor;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-health-and-safety-obligation" eId="term-health-and-safety-obligation">health and safety obligation</term>”, in relation to a company, means an obligation (whether or not imposed by legislation)—</p></intro><level class="para1"><num>(a)</num><content><p>relating to the health, safety or welfare at work of the company's employees, or</p></content></level><level class="para1"><num>(b)</num><content><p>relating to risks to the health or safety of other persons arising out of or in connection with the company's activities.</p></content></level></hcontainer></subsection><subsection eId="section-3-8"><num>(8)</num><intro><p>Nothing in this section affects any arrangements between the Secretary of State and a company which is, or has been, a contractor under which the company is to compensate the Secretary of State in respect of—</p></intro><level class="para1" eId="section-3-8-a"><num>(a)</num><content><p>any liability under subsection (1), or</p></content></level><level class="para1" eId="section-3-8-b"><num>(b)</num><content><p>any payment made under subsection (2).</p></content></level></subsection></section><section eId="section-4"><num>4</num><heading>Exemptions relating to premises used by a contractor</heading><content><p>Schedule 1 (exemptions relating to premises used by a contractor) has effect.</p></content></section><section eId="section-5"><num>5</num><heading>Jurisdiction of Ministry of Defence Police</heading><subsection eId="section-5-1"><num>(1)</num><intro><p>The places to which section 2(2) of the Ministry of Defence Police Act 1987 (jurisdiction) applies include land, vehicles, vessels, aircraft and hovercraft which are—</p></intro><level class="para1" eId="section-5-1-a"><num>(a)</num><content><p>in the possession, under the control or used for the purposes of a contractor, and</p></content></level><level class="para1" eId="section-5-1-b"><num>(b)</num><content><p>used for the purposes of, or for purposes which include, the provision of defence procurement services to the Secretary of State by virtue of arrangements mentioned in section 1.</p></content></level></subsection><subsection eId="section-5-2"><num>(2)</num><intro><p>Section 2(3) of that Act has effect as if the reference to Crown property included a reference to property which—</p></intro><level class="para1" eId="section-5-2-a"><num>(a)</num><content><p>belongs to a contractor, is in its possession or under its control or has been unlawfully removed from its possession or control, and</p></content></level><level class="para1" eId="section-5-2-b"><num>(b)</num><content><p>is, or was immediately before its removal, used to any extent for the purpose of the provision of defence procurement services as mentioned in subsection (1)(b).</p></content></level></subsection><subsection eId="section-5-3"><num>(3)</num><content><p>Section 2(3) of that Act also has effect as if the reference to a contract entered into by the Secretary of State for Defence for the purposes of his Department or the Defence Council included a reference to a contract entered into by a contractor for the purposes of, or for purposes which include, the provision of defence procurement services as mentioned in subsection (1)(b).</p></content></subsection></section><section eId="section-6"><num>6</num><heading>Status of contractor</heading><subsection eId="section-6-1"><num>(1)</num><content><p>This section applies where arrangements mentioned in section 1 provide for a contractor to act on behalf of the Secretary of State for the purposes of a provision of a contract entered into by the Secretary of State at any time before the vesting date for the purposes of defence procurement.</p></content></subsection><subsection eId="section-6-2"><num>(2)</num><content><p>Any right or power of the Secretary of State under the provision of the contract may be exercised by the contractor on behalf of the Secretary of State.</p></content></subsection><subsection eId="section-6-3"><num>(3)</num><content><p>Any duty or liability of the Secretary of State under the provision of the contract may be discharged by the contractor on behalf of the Secretary of State.</p></content></subsection><subsection eId="section-6-4"><num>(4)</num><content><p>Nothing in the contract or otherwise prevents or penalises the exercise of a right or power of the Secretary of State, or the discharge of a duty or liability of the Secretary of State, in the way mentioned in subsection (2) or (3).</p></content></subsection></section><section eId="section-7"><num>7</num><heading>Restrictions on disclosure or use of information</heading><content><p>Schedule 2 (restrictions on disclosure or use of information) has effect.</p></content></section><section eId="section-8"><num>8</num><heading>Intellectual property rights</heading><subsection eId="section-8-1"><num>(1)</num><intro><p>The Secretary of State may provide a protected work to a contractor or a service provider to a contractor, without infringing copyright or database right, if—</p></intro><level class="para1" eId="section-8-1-a"><num>(a)</num><content><p>the Secretary of State acquired (whether before or after the coming into force of this section) a right to use the work under or in connection with a relevant contract, and</p></content></level><level class="para1" eId="section-8-1-b"><num>(b)</num><content><p>the provision of the work is necessary or expedient for the purposes of arrangements mentioned in section 1.</p></content></level></subsection><subsection eId="section-8-2"><num>(2)</num><intro><p>A contractor or former contractor, or a service provider to a contractor or former contractor, may, without infringing copyright or database right, provide a protected work provided to it under subsection (1) or this subsection—</p></intro><level class="para1" eId="section-8-2-a"><num>(a)</num><content><p>to a contractor or service provider to a contractor, or</p></content></level><level class="para1" eId="section-8-2-b"><num>(b)</num><content><p>to the Secretary of State,</p></content></level><wrapUp><p>if the provision of the work by the contractor, former contractor or service provider is necessary or expedient for the purposes of arrangements mentioned in section 1.</p></wrapUp></subsection><subsection eId="section-8-3"><num>(3)</num><content><p>A contractor or service provider to which a protected work has been provided under subsection (1) or (2) may, without infringing copyright or database right, make any use of the work that the Secretary of State could make as a result of the Secretary of State's right to use the work if the use of the work by the contractor or service provider is necessary or expedient for the purposes of arrangements mentioned in section 1.</p></content></subsection><subsection eId="section-8-4"><num>(4)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-ancillary-services" eId="term-ancillary-services">ancillary services</term>” means services certified by the Secretary of State to be services appearing to the Secretary of State to be calculated to facilitate, or to be conducive or incidental to, arrangements mentioned in section 1;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-copyright-work" eId="term-copyright-work">copyright work</term>” has the meaning given by Part 1 of the Copyright, Designs and Patents Act 1988 (see section 1(2) of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-database" eId="term-database">database</term>” has the meaning given by section 3A of that Act;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-database-right" eId="term-database-right">database right</term>” has the same meaning as in Part 3 of the Copyright and Rights in Databases Regulations 1997 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 1997/3032);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-former-contractor" eId="term-former-contractor">former contractor</term>” means a company which has been a contractor;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-protected-work" eId="term-protected-work">protected work</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>a copyright work, or</p></content></level><level class="para1"><num>(b)</num><content><p>a database in which database right subsists;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-contract" eId="term-relevant-contract">relevant contract</term>” means a contract entered into by the Secretary of State at any time before the vesting date for the purposes of defence procurement;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-service-provider" eId="term-service-provider">service provider</term>”, in relation to a contractor or former contractor, means a person who performs ancillary services for that contractor.</p></content></hcontainer></subsection><subsection eId="section-8-5"><num>(5)</num><content><p>In this section a reference to providing a protected work to a person includes a reference to the making of a copy of the work for the purposes of providing it to the person.</p></content></subsection><subsection eId="section-8-6"><num>(6)</num><intro><p>In this section a reference to the right to use a protected work—</p></intro><level class="para1" eId="section-8-6-a"><num>(a)</num><content><p>in relation to a copyright work, is a reference to a licence to exercise a right which would otherwise be exercisable by the owner of the copyright in the work;</p></content></level><level class="para1" eId="section-8-6-b"><num>(b)</num><content><p>in relation to a database, is a reference to a right to use the database under a licence to do an act restricted by database right in the database.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-transfers"><heading><i>Transfers</i></heading><section eId="section-9"><num>9</num><heading>Transfer of employees: application of <abbr class="acronym" title="Transfer of Undertakings (Protection of Employment)">TUPE</abbr> regulations</heading><subsection eId="section-9-1"><num>(1)</num><content><p>The <abbr class="acronym" title="Transfer of Undertakings (Protection of Employment)">TUPE</abbr> regulations apply to the transfer of a relevant undertaking or any part of it by virtue of arrangements mentioned in section 1 whether or not the relevant undertaking would otherwise be treated as an undertaking to whose transfer the regulations apply.</p></content></subsection><subsection eId="section-9-2"><num>(2)</num><content><p>For the purposes of the <abbr class="acronym" title="Transfer of Undertakings (Protection of Employment)">TUPE</abbr> regulations, the services of the relevant employees are to be treated as a part of that undertaking to whose transfer the regulations apply whether or not the company which is to become their employer also provides defence procurement services by virtue of arrangements mentioned in section 1.</p></content></subsection><subsection eId="section-9-3"><num>(3)</num><content><p>In this section—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>“relevant undertaking”—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in relation to arrangements mentioned in section 1(1)(b), means DE&amp;S;</p></item><item><num>(b)</num><p>in relation to arrangements mentioned in section 1(4)(b), means the departmental defence procurement undertaking;</p></item></blockList></item><item><p>“relevant employees”—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in relation to arrangements mentioned in section 1(1)(b), means the persons employed in the civil service of the State mentioned in section 1(1)(b);</p></item><item><num>(b)</num><p>in relation to arrangements mentioned in section 1(4)(b), means the persons employed in the civil service of the State mentioned in section 1(4)(b).</p></item></blockList></item></blockList></content></subsection></section><section eId="section-10"><num>10</num><heading>Transfer schemes</heading><subsection eId="section-10-1"><num>(1)</num><intro><p>The Secretary of State may make one or more schemes for the transfer of property, rights and liabilities (a “transfer scheme”) if—</p></intro><level class="para1" eId="section-10-1-a"><num>(a)</num><content><p>a relevant contractor is in breach of a services contract and the breach occurs in specified circumstances or is of a specified kind, or</p></content></level><level class="para1" eId="section-10-1-b"><num>(b)</num><content><p>a services contract has come to an end, whether by the expiry of the period for which it was in force or otherwise.</p></content></level></subsection><subsection eId="section-10-2"><num>(2)</num><intro><p>A transfer scheme may provide for the transfer of property, rights and liabilities to—</p></intro><level class="para1" eId="section-10-2-a"><num>(a)</num><content><p>the Crown,</p></content></level><level class="para1" eId="section-10-2-b"><num>(b)</num><content><p>the Secretary of State, or</p></content></level><level class="para1" eId="section-10-2-c"><num>(c)</num><content><p>a company mentioned in section 1(2)(a).</p></content></level></subsection><subsection eId="section-10-3"><num>(3)</num><intro><p>The property, rights and liabilities that may be transferred by a transfer scheme are—</p></intro><level class="para1" eId="section-10-3-a"><num>(a)</num><content><p>property, rights and liabilities of a relevant contractor;</p></content></level><level class="para1" eId="section-10-3-b"><num>(b)</num><content><p>securities in a relevant contractor;</p></content></level><level class="para1" eId="section-10-3-c"><num>(c)</num><content><p>any property or rights of a third party that was or were acquired from a relevant contractor and any liabilities of a third party so far as relating to any such property or rights.</p></content></level></subsection><subsection eId="section-10-4"><num>(4)</num><content><p>Subsection (3) does not apply to property, rights or liabilities to the extent that an agreement between the Secretary of State and the person entitled to or subject to them provides that they are not to be transferred by a transfer scheme.</p></content></subsection><subsection eId="section-10-5"><num>(5)</num><content><p>Schedule 3 makes further provision about transfer schemes under this section.</p></content></subsection><subsection eId="section-10-6"><num>(6)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-contractor" eId="term-relevant-contractor">relevant contractor</term>”, in relation to a services contract, means a company which is or was a contractor in relation to the arrangements to which that contract relates;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-services-contract" eId="term-services-contract">services contract</term>” means a contract for a company to provide defence procurement services to the Secretary of State entered into by virtue of arrangements mentioned in section 1;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-specified" eId="term-specified">specified</term>”, in relation to a services contract, means specified in the contract for the purposes of this section;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-third-party" eId="term-third-party">third party</term>” means a person other than a relevant contractor.</p></content></hcontainer></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-general"><heading><i>General</i></heading><section eId="section-11"><num>11</num><heading>Financial provisions</heading><intro><p>There is to be paid out of money provided by Parliament any expenditure of the Secretary of State incurred—</p></intro><level class="para1" eId="section-11-a"><num>(a)</num><content><p>in connection with the formation of any company formed with a view to, or for any purpose of, the provision of defence procurement services or otherwise in connection with the establishment of arrangements mentioned in section 1;</p></content></level><level class="para1" eId="section-11-b"><num>(b)</num><content><p>in assuming responsibility for any liabilities of a company which is or has been concerned in or in connection with the provision of defence procurement services which are liabilities arising out of the provision of such services or liabilities to or in respect of persons employed or formerly employed in or in connection with the provision of such services.</p></content></level></section><section eId="section-12"><num>12</num><heading>Interpretation of this Part</heading><subsection eId="section-12-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” means a company as defined in section 1(1) of the Companies Act 2006;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-contractor" eId="term-contractor">contractor</term>” has the meaning given by section 1(8);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-des" eId="term-des">DE&amp;S</term>” has the meaning given by section 1(8);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-defence-procurement" eId="term-defence-procurement">defence procurement</term>” has the meaning given by section 1(8);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-defence-procurement-services" eId="term-defence-procurement-services">defence procurement services</term>” has the meaning given by section 1(8);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-defence-purposes" eId="term-defence-purposes">defence purposes</term>” has the meaning given by section 1(8);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-departmental-defence-procurement-undertaking" eId="term-the-departmental-defence-procurement-undertaking">the departmental defence procurement undertaking</term>” has the meaning given by section 1(8);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-formed" eId="term-formed">formed</term>”, in relation to a company, includes the alteration of the company's articles so as to add, remove or alter a statement of the company's objects;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-minister-of-the-crown" eId="term-minister-of-the-crown">Minister of the Crown</term>” has the same meaning as in the Ministers of the Crown Act 1975;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-property" eId="term-property">property</term>” includes interests of any description;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-publicly-owned-company" eId="term-publicly-owned-company">publicly owned company</term>” means a company which is—</p></intro><level class="para1"><num>(a)</num><content><p>a company limited by shares in which no one other than a relevant person holds any of the shares, or</p></content></level><level class="para1"><num>(b)</num><content><p>a company limited by guarantee of which no one other than a relevant person is a member;</p></content></level></hcontainer><hcontainer name="definition"><content><p>the “<term refersTo="#term-tupe-regulations" eId="term-tupe-regulations"><abbr class="acronym" title="Transfer of Undertakings (Protection of Employment)">TUPE</abbr> regulations</term>” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2006/246);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-vesting-date" eId="term-the-vesting-date">the vesting date</term>” means a day appointed by the Secretary of State by order made by statutory instrument.</p></content></hcontainer></subsection><subsection eId="section-12-2"><num>(2)</num><intro><p>In the definition of “publicly owned company” in subsection (1), “<term refersTo="#term-relevant-person" eId="term-relevant-person">relevant person</term>” means—</p></intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content><p>a Minister of the Crown,</p></content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content><p>a publicly owned company, or</p></content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content><p>a nominee of a person falling within paragraph (a) or (b).</p></content></level></subsection></section></hcontainer></part>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1998/Math/MathML" eId="part-2"><num><b>Part 2</b></num><heading>Single source contracts</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-single-source-regulations-office"><heading><i>Single Source Regulations Office</i></heading><section eId="section-13"><num>13</num><heading>Single Source Regulations Office (or “SSRO”)</heading><subsection eId="section-13-1"><num>(1)</num><content><p>A body corporate called the Single Source Regulations Office (“the SSRO”) is established.</p></content></subsection><subsection eId="section-13-2"><num>(2)</num><intro><p>In carrying out its functions under or by virtue of this Part, the SSRO must aim to ensure—</p></intro><level class="para1" eId="section-13-2-a"><num>(a)</num><content><p>that good value for money is obtained in government expenditure on qualifying defence contracts, and</p></content></level><level class="para1" eId="section-13-2-b"><num>(b)</num><content><p>that persons (other than the Secretary of State) who are parties to qualifying defence contracts are paid a fair and reasonable price under those contracts.</p></content></level></subsection><subsection eId="section-13-3"><num>(3)</num><content><p>Schedule 4 contains further provision about the SSRO.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-qualifying-defence-contracts"><heading><i>Qualifying defence contracts</i></heading><section eId="section-14"><num>14</num><heading>Regulations relating to qualifying defence contracts</heading><subsection eId="section-14-1"><num>(1)</num><content><p>The Secretary of State may by regulations under this Part (“<term refersTo="#term-single-source-contract-regulations" eId="term-single-source-contract-regulations">single source contract regulations</term>”) make provision in relation to qualifying defence contracts.</p></content></subsection><subsection eId="section-14-2"><num>(2)</num><intro><p>For the purposes of this Part, a contract is a “qualifying defence contract” if—</p></intro><level class="para1" eId="section-14-2-a"><num>(a)</num><content><p>it is a contract under which the Secretary of State procures goods, works or services <ins class="first last" ukl:ChangeId="key-936366140a0beb9cb1669812a1eb5723-1709049445106" ukl:CommentaryRef="key-936366140a0beb9cb1669812a1eb5723"><noteRef uk:name="commentary" href="#key-936366140a0beb9cb1669812a1eb5723" class="commentary"/>wholly or substantially</ins> for defence purposes from another person (a “primary contractor”),</p></content></level><level class="para1" eId="section-14-2-b"><num>(b)</num><content><p>the value of the contract is of or above the amount specified in single source contract regulations,</p></content></level><level class="para1" eId="section-14-2-c"><num>(c)</num><content><p>the contract does not fall within a description specified in the regulations, and</p></content></level><level class="para1" eId="section-14-2-d"><num>(d)</num><content><p>subsection (3), (4) or (5) applies to the contract.</p></content></level></subsection><subsection eId="section-14-3"><num>(3)</num><intro><p>This subsection applies to a contract if—</p></intro><level class="para1" eId="section-14-3-a"><num>(a)</num><content><p>the contract is entered into on or after the relevant date, and</p></content></level><level class="para1" eId="section-14-3-b"><num>(b)</num><content><p>the award of the contract is not the result of a competitive process.</p></content></level></subsection><subsection eId="section-14-4"><num>(4)</num><intro><p>This subsection applies to a contract if—</p></intro><level class="para1" eId="section-14-4-a"><num>(a)</num><content><p>the contract was entered into before the relevant date,</p></content></level><level class="para1" eId="section-14-4-b"><num>(b)</num><content><p>the award of the contract was not the result of a competitive process,</p></content></level><level class="para1" eId="section-14-4-c"><num>(c)</num><content><p>the contract is amended on or after that date, and</p></content></level><level class="para1" eId="section-14-4-d"><num>(d)</num><content><p>in amending the contract, the Secretary of State and the primary contractor agree that it is to be a qualifying defence contract.</p></content></level></subsection><subsection eId="section-14-5"><num>(5)</num><intro><p>This subsection applies to a contract, whether entered into before or after the relevant date, if—</p></intro><level class="para1" eId="section-14-5-a"><num>(a)</num><content><p>the award of the contract is the result of a competitive process,</p></content></level><level class="para1" eId="section-14-5-b"><num>(b)</num><content><p>the contract is amended on or after the relevant date,</p></content></level><level class="para1" eId="section-14-5-c"><num>(c)</num><content><p>the amendment is not the result of a competitive process, and</p></content></level><level class="para1" eId="section-14-5-d"><num>(d)</num><content><p>in amending the contract, the Secretary of State and the primary contractor agree that it is to be a qualifying defence contract.</p></content></level></subsection><subsection eId="section-14-5A"><num><ins class="first" ukl:ChangeId="key-f49f03f04f6524a4a73e660400bd118d-1709049388964" ukl:CommentaryRef="key-f49f03f04f6524a4a73e660400bd118d"><noteRef uk:name="commentary" href="#key-f49f03f04f6524a4a73e660400bd118d" class="commentary"/>(5A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-f49f03f04f6524a4a73e660400bd118d-1709049388964" ukl:CommentaryRef="key-f49f03f04f6524a4a73e660400bd118d">Single source contract regulations may specify circumstances in which a contract entered into by the Secretary of State with a primary contractor is or is not to be treated as amending an existing contract between those parties for the purposes of this section.</ins></p></content></subsection><subsection eId="section-14-6"><num>(6)</num><content><p>Single source contract regulations must make provision for determining whether the award, or amendment, of a contract is the result of a competitive process.</p></content></subsection><subsection eId="section-14-7"><num>(7)</num><content><p>The Secretary of State may direct that a particular contract to which subsection (3) applies is not a qualifying defence contract even though the contract otherwise meets the requirements of subsection (2).</p></content></subsection><subsection eId="section-14-8"><num>(8)</num><content><p>In this section, “<term refersTo="#term-defence-purposes" eId="term-defence-purposes">defence purposes</term>” has the meaning given by the regulations.</p></content></subsection><subsection eId="section-14-8A"><num><ins class="first" ukl:ChangeId="key-95246ca9ae5d4629aee4490f65fdc680-1709049354576" ukl:CommentaryRef="key-95246ca9ae5d4629aee4490f65fdc680"><noteRef uk:name="commentary" href="#key-95246ca9ae5d4629aee4490f65fdc680" class="commentary"/>(8A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-95246ca9ae5d4629aee4490f65fdc680-1709049354576" ukl:CommentaryRef="key-95246ca9ae5d4629aee4490f65fdc680">The regulations may also specify when a contract is to be treated as substantially for defence purposes.</ins></p></content></subsection><subsection eId="section-14-9"><num>(9)</num><intro><p>In this Part—</p></intro><level class="para1" eId="section-14-9-a"><num>(a)</num><content><p>“<term refersTo="#term-relevant-date" eId="term-relevant-date">relevant date</term>” means the date on which the first single source contract regulations come into force;</p></content></level><level class="para1" eId="section-14-9-b"><num>(b)</num><content><p>references to “single source contract regulations” are to be read in accordance with subsection (1);</p></content></level><level class="para1" eId="section-14-9-c"><num>(c)</num><content><p>references to a “primary contractor” are to be read in accordance with subsection (2)(a).</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-pricing-of-contracts"><heading><i>Pricing of contracts</i></heading><section eId="section-15"><num>15</num><heading>Pricing of contracts</heading><subsection eId="section-15-1"><num>(1)</num><content><p>Single source contract regulations must make provision about determining the price payable under a qualifying defence contract <ins class="first last" ukl:ChangeId="key-740f8b7dd0b540a43dc26e8560ecfe6d-1709050740147" ukl:CommentaryRef="key-740f8b7dd0b540a43dc26e8560ecfe6d"><noteRef uk:name="commentary" href="#key-740f8b7dd0b540a43dc26e8560ecfe6d" class="commentary"/>, and, where the contract is divided into components, each component of that contract,</ins> to the primary contractor.</p></content></subsection><subsection eId="section-15-2"><num><ins class="substitution first" ukl:ChangeId="key-f707ffcbccb441d57d2e9fc47505da5b-1709049931607" ukl:CommentaryRef="key-f707ffcbccb441d57d2e9fc47505da5b"><noteRef uk:name="commentary" href="#key-f707ffcbccb441d57d2e9fc47505da5b" class="commentary"/>(2)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-f707ffcbccb441d57d2e9fc47505da5b-1709049931607" ukl:CommentaryRef="key-f707ffcbccb441d57d2e9fc47505da5b">The regulations must provide for the price payable under the contract, or any component, to be determined—</ins></p></intro><level class="para1" eId="section-15-2-a"><num><ins class="substitution" ukl:ChangeId="key-f707ffcbccb441d57d2e9fc47505da5b-1709049931607" ukl:CommentaryRef="key-f707ffcbccb441d57d2e9fc47505da5b">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-f707ffcbccb441d57d2e9fc47505da5b-1709049931607" ukl:CommentaryRef="key-f707ffcbccb441d57d2e9fc47505da5b">in accordance with the formula in subsection (4), or</ins></p></content></level><level class="para1" eId="section-15-2-b"><num><ins class="substitution" ukl:ChangeId="key-f707ffcbccb441d57d2e9fc47505da5b-1709049931607" ukl:CommentaryRef="key-f707ffcbccb441d57d2e9fc47505da5b">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-f707ffcbccb441d57d2e9fc47505da5b-1709049931607" ukl:CommentaryRef="key-f707ffcbccb441d57d2e9fc47505da5b">in such circumstances as may be specified in the regulations, in accordance with another method.</ins></p></content></level></subsection><subsection eId="section-15-2A"><num><ins class="substitution" ukl:ChangeId="key-f707ffcbccb441d57d2e9fc47505da5b-1709049931607" ukl:CommentaryRef="key-f707ffcbccb441d57d2e9fc47505da5b">(2A)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-f707ffcbccb441d57d2e9fc47505da5b-1709049931607" ukl:CommentaryRef="key-f707ffcbccb441d57d2e9fc47505da5b">The regulations must only specify circumstances for the purposes of subsection (2)(b) if the Secretary of State is satisfied that the factors referred to in section 13(2) may be ensured in those circumstances if another method is used.</ins></p></content></subsection><subsection eId="section-15-2B"><num><ins class="substitution" ukl:ChangeId="key-f707ffcbccb441d57d2e9fc47505da5b-1709049931607" ukl:CommentaryRef="key-f707ffcbccb441d57d2e9fc47505da5b">(2B)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-f707ffcbccb441d57d2e9fc47505da5b-1709049931607" ukl:CommentaryRef="key-f707ffcbccb441d57d2e9fc47505da5b">The regulations may also make provision requiring a particular method specified in the regulations to be used in certain of the circumstances specified for the purposes of subsection (2)(b).</ins></p></content></subsection><subsection eId="section-15-3"><num>(3)</num><intro><p>The regulations must provide that where the Secretary of State and the primary contractor propose to amend the contract <ins class="first last" ukl:ChangeId="key-0823045f0ae480b28d622d94284dcea9-1709050801036" ukl:CommentaryRef="key-0823045f0ae480b28d622d94284dcea9"><noteRef uk:name="commentary" href="#key-0823045f0ae480b28d622d94284dcea9" class="commentary"/>or each amended component of that contract,</ins> in a way that would affect the price determined by virtue of subsection (2) or this subsection—</p></intro><level class="para1" eId="section-15-3-a"><num>(a)</num><content><p>the price payable under the amended contract must be re-determined in accordance with <ins class="substitution first last" ukl:ChangeId="key-b7d35398e442310e2e44e572c15800fd-1709050871798" ukl:CommentaryRef="key-b7d35398e442310e2e44e572c15800fd"><noteRef uk:name="commentary" href="#key-b7d35398e442310e2e44e572c15800fd" class="commentary"/>the method applicable by virtue of subsection (2)</ins>, or</p></content></level><level class="para1" eId="section-15-3-b"><num>(b)</num><content><p>the price payable in respect of the amendment must be determined in accordance with that <ins class="substitution first last" ukl:ChangeId="key-15853422744e8374375b66c44e27fdb5-1709050913399" ukl:CommentaryRef="key-15853422744e8374375b66c44e27fdb5"><noteRef uk:name="commentary" href="#key-15853422744e8374375b66c44e27fdb5" class="commentary"/>method</ins>.</p></content></level></subsection><subsection eId="section-15-4"><num>(4)</num><content><p>The formula is—</p><tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2014/20/images/ukpga_20140020_en_sld_001"><default:mo> (</default:mo><default:mrow><default:mi> CPR</default:mi><default:mo> ×</default:mo><default:mi> AC</default:mi></default:mrow><default:mo> )</default:mo><default:mo> +</default:mo><default:mrow><default:mi> AC</default:mi></default:mrow></default:math></foreign><blockContainer class="where"><p>where—</p><blockList class="ordered alpha none" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="none"><item><num>a</num><p>“<abbr class="acronym" title="Civil Procedure Rules">CPR</abbr>” is the contract profit rate for the contract <ins class="first last" ukl:ChangeId="key-cf9cfded9c6923e6b9367679ff086e75-1709050971740" ukl:CommentaryRef="key-cf9cfded9c6923e6b9367679ff086e75"><noteRef uk:name="commentary" href="#key-cf9cfded9c6923e6b9367679ff086e75" class="commentary"/>or component</ins> (see section 17), and</p></item><item><num>b</num><p>“<term refersTo="#term-ac" eId="term-ac">AC</term>” means the primary contractor's allowable costs under the contract <ins class="first last" ukl:ChangeId="key-3f2dfa2304a2a89f8202b0cf11d245cb-1709051004731" ukl:CommentaryRef="key-3f2dfa2304a2a89f8202b0cf11d245cb"><noteRef uk:name="commentary" href="#key-3f2dfa2304a2a89f8202b0cf11d245cb" class="commentary"/>or component</ins> (see section 20).</p></item></blockList></blockContainer></tblock></content></subsection><subsection eId="section-15-5"><num>(5)</num><content><p>The regulations may provide for a determination by virtue of subsection (2) or (3) to be made at such times as may be specified in the regulations (and different times may be specified for different kinds of contract <ins class="first last" ukl:ChangeId="key-0c0c7f92d38ba0416d4042a1d648a47b-1709051048933" ukl:CommentaryRef="key-0c0c7f92d38ba0416d4042a1d648a47b"><noteRef uk:name="commentary" href="#key-0c0c7f92d38ba0416d4042a1d648a47b" class="commentary"/>or component</ins>).</p></content></subsection><subsection eId="section-15-6"><num><ins class="first" ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34"><noteRef uk:name="commentary" href="#key-9959e9ce6d47196b91eca8cae0855b34" class="commentary"/>(6)</ins></num><content><p><ins ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">In this Part, “</ins><term refersTo="#term-component"><ins ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">component</ins></term><ins ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">”, in relation to a contract, means a part of the contract that is to be treated distinctly from other such parts in determining the price payable under the contract.</ins></p></content></subsection><subsection eId="section-15-7"><num><ins ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">(7)</ins></num><intro><p><ins ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">For the purposes of subsection (6), a part of a contract is to be treated distinctly if—</ins></p></intro><level class="para1" eId="section-15-7-a"><num><ins ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">(a)</ins></num><content><p><ins ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">single source contract regulations contain provision to that effect, or</ins></p></content></level><level class="para1" eId="section-15-7-b"><num><ins ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">(b)</ins></num><content><p><ins ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">the parties to the contract agree that it should.</ins></p></content></level></subsection><subsection eId="section-15-8"><num><ins ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">(8)</ins></num><content><p><ins class="last" ukl:ChangeId="key-9959e9ce6d47196b91eca8cae0855b34-1709050015880" ukl:CommentaryRef="key-9959e9ce6d47196b91eca8cae0855b34">Single source contract regulations may make provision about when parts of a qualifying defence contract are or are not to be treated distinctly from other parts of the same contract.</ins></p></content></subsection></section><section eId="section-16"><num>16</num><heading>Pricing of contracts: supplementary</heading><subsection eId="section-16-1"><num>(1)</num><intro><p>Single source contract regulations may specify circumstances in which, if the Secretary of State and the primary contractor so agree—</p></intro><level class="para1" eId="section-16-1-a"><num>(a)</num><content><p>the price determined in accordance with section 15 is to be taken as a target price, and</p></content></level><level class="para1" eId="section-16-1-b"><num>(b)</num><intro><p>the total price payable under the contract is subject to adjustment by reference to any difference between—</p></intro><level class="para2" eId="section-16-1-b-i"><num>(i)</num><content><p>the amount of the primary contractor's actual allowable costs under the contract <ins class="first last" ukl:ChangeId="key-889785d16851e9f48277aad60639d55f-1709051690075" ukl:CommentaryRef="key-889785d16851e9f48277aad60639d55f"><noteRef uk:name="commentary" href="#key-889785d16851e9f48277aad60639d55f" class="commentary"/>or, where relevant, a component of that contract</ins>, and</p></content></level><level class="para2" eId="section-16-1-b-ii"><num>(ii)</num><content><p>the amount of the estimated allowable costs used for the purpose of determining the target price.</p></content></level></level></subsection><subsection eId="section-16-2"><num>(2)</num><intro><p>The amount of any adjustment by virtue of subsection (1)(b) must be determined—</p></intro><level class="para1" eId="section-16-2-a"><num>(a)</num><content><p>by agreement between the Secretary of State, or an authorised person, and the primary contractor, or</p></content></level><level class="para1" eId="section-16-2-b"><num>(b)</num><content><p>by the SSRO, where the matter is referred to it by the Secretary of State, an authorised person or the primary contractor.</p></content></level></subsection><subsection eId="section-16-3"><num>(3)</num><content><p>Section 21 (final price adjustment) does not apply to a contract in a case where an agreement of a kind mentioned in subsection (1) has effect.</p></content></subsection><subsection eId="section-16-4"><num><ins class="first" ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee"><noteRef uk:name="commentary" href="#key-b4bd14124833ade7a0094f51129f80ee" class="commentary"/>(4)</ins></num><intro><p><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">Single source contract regulations may provide that the SSRO—</ins></p></intro><level class="para1" eId="section-16-4-a"><num><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">(a)</ins></num><content><p><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">must, on an application by a person within subsection (5), determine whether the method used to determine the price payable under a qualifying defence contract or a component of that contract was appropriate;</ins></p></content></level><level class="para1" eId="section-16-4-b"><num><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">(b)</ins></num><content><p><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">may, in consequence of a determination under paragraph </ins><ref href="#"><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">(a)</ins></ref><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">, determine that the price payable under the contract is to be adjusted by an amount specified by the SSRO.</ins></p></content></level></subsection><subsection eId="section-16-5"><num><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">(5)</ins></num><intro><p><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">The following persons are within this subsection—</ins></p></intro><level class="para1" eId="section-16-5-a"><num><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">(a)</ins></num><content><p><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">the Secretary of State,</ins></p></content></level><level class="para1" eId="section-16-5-b"><num><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">(b)</ins></num><content><p><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">an authorised person, and</ins></p></content></level><level class="para1" eId="section-16-5-c"><num><ins ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-b4bd14124833ade7a0094f51129f80ee-1709051664485" ukl:CommentaryRef="key-b4bd14124833ade7a0094f51129f80ee">the primary contractor.</ins></p></content></level></subsection></section><section eId="section-17"><num>17</num><heading>Contract profit rate</heading><subsection eId="section-17-1"><num>(1)</num><content><p>Single source contract regulations must make provision for determining the contract profit rate for a qualifying defence contract <ins class="first last" ukl:ChangeId="key-4958ac280087a609a8c9f92dab259bcb-1709055892991" ukl:CommentaryRef="key-4958ac280087a609a8c9f92dab259bcb"><noteRef uk:name="commentary" href="#key-4958ac280087a609a8c9f92dab259bcb" class="commentary"/>, or, where the contract is divided into components, any component of that contract</ins>.</p></content></subsection><subsection eId="section-17-2"><num>(2)</num><content><p>The regulations must provide for the determination to be made by taking the following sequence of steps, subject to section 18(2)—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p><i>Step 1</i> Take the baseline profit rate (see section 19) which is in force at the relevant time.“<term refersTo="#term-the-relevant-time" eId="term-the-relevant-time">The relevant time</term>” means—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>in a case within section 15(2)—</p><blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num><p>when the contract is entered into, if the contract is a qualifying defence contract by virtue of section 14(3), or</p></item><item><num>(ii)</num><p>when the contract is amended, if the contract is a qualifying defence contract by virtue of section 14(4) or (5);</p></item></blockList></item><item><num>(b)</num><p>in a case within section 15(3), when the contract is amended.</p></item></blockList></item><item><p><i>Step 2</i> Adjust that rate by an agreed amount, being an amount falling within specified parameters above or below the baseline profit rate, so as to reflect <ins class="substitution first last" ukl:ChangeId="key-3e5ea7275ce0765bb964f45a7da3c9c5-1709055946038" ukl:CommentaryRef="key-3e5ea7275ce0765bb964f45a7da3c9c5"><noteRef uk:name="commentary" href="#key-3e5ea7275ce0765bb964f45a7da3c9c5" class="commentary"/>the financial risks to the primary contractor of entering into the contract or component, taking into account the particular type of activities to be carried out by the primary contractor under that contract or component.</ins>.“<term refersTo="#term-specified" eId="term-specified">Specified</term>” means specified in the regulations.</p></item><item><p><i><noteRef href="#key-4a8d15d4314fda1a8db3c1d9ce363204" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</i></p></item><item><p><i><noteRef href="#key-4a8d15d4314fda1a8db3c1d9ce363204" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</i></p></item><item><p><i>Step <ins class="substitution first last" ukl:ChangeId="key-476330ef7596d5718108d40d6b78e2c5-1709056175224" ukl:CommentaryRef="key-476330ef7596d5718108d40d6b78e2c5"><noteRef uk:name="commentary" href="#key-476330ef7596d5718108d40d6b78e2c5" class="commentary"/>3</ins></i> Where the Secretary of State determines that the amount resulting from step <ins class="substitution first last" ukl:ChangeId="key-8d6855b18f3111dc9255005707ff96e5-1709056263163" ukl:CommentaryRef="key-8d6855b18f3111dc9255005707ff96e5"><noteRef uk:name="commentary" href="#key-8d6855b18f3111dc9255005707ff96e5" class="commentary"/>2</ins> should be increased so as to give the primary contractor a particular financial incentive as regards the performance of provisions of the contract <ins class="first last" ukl:ChangeId="key-845b46beb4e1056e97e85febba366f1f-1709056305309" ukl:CommentaryRef="key-845b46beb4e1056e97e85febba366f1f"><noteRef uk:name="commentary" href="#key-845b46beb4e1056e97e85febba366f1f" class="commentary"/>or component</ins> specified by the Secretary of State, increase that amount by an amount specified by the Secretary of State. <ins class="first last" ukl:ChangeId="key-a48563fc4bd12e3cca0fa144af0e6c60-1709056351419" ukl:CommentaryRef="key-a48563fc4bd12e3cca0fa144af0e6c60"><noteRef uk:name="commentary" href="#key-a48563fc4bd12e3cca0fa144af0e6c60" class="commentary"/>In specifying provisions of the contract or component, the Secretary of State must comply with any requirements imposed by the regulations, and</ins> any increase must not exceed the maximum increase permitted by the regulations.</p></item><item><p><i>Step <ins class="substitution first last" ukl:ChangeId="key-476330ef7596d5718108d40d6b78e2c5-1709056219479" ukl:CommentaryRef="key-476330ef7596d5718108d40d6b78e2c5"><noteRef uk:name="commentary" href="#key-476330ef7596d5718108d40d6b78e2c5" class="commentary"/>4</ins></i> Take the amount resulting from step <ins class="substitution first last" ukl:ChangeId="key-22f30fee671a1aeeec3b63b7fd6f1bc5-1709056396845" ukl:CommentaryRef="key-22f30fee671a1aeeec3b63b7fd6f1bc5"><noteRef uk:name="commentary" href="#key-22f30fee671a1aeeec3b63b7fd6f1bc5" class="commentary"/>3</ins> and add to or subtract from it an agreed amount, so as to ensure that the primary contractor receives an appropriate and reasonable return on the fixed and working capital employed by the primary contractor for the purposes of enabling the primary contractor to perform the contract <ins class="first last" ukl:ChangeId="key-6f0d544f75d001ebd8d55c6b70c3f63b-1709056488574" ukl:CommentaryRef="key-6f0d544f75d001ebd8d55c6b70c3f63b"><noteRef uk:name="commentary" href="#key-6f0d544f75d001ebd8d55c6b70c3f63b" class="commentary"/>or component</ins>. This adjustment—</p><blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num><p>is to be made having regard to the capital servicing rates determined under section 19, but</p></item><item><num>(b)</num><p>does not apply to the extent that the costs of the fixed and working capital employed by the primary contractor are allowable costs under the contract <ins class="first last" ukl:ChangeId="key-6f0d544f75d001ebd8d55c6b70c3f63b-1709056524546" ukl:CommentaryRef="key-6f0d544f75d001ebd8d55c6b70c3f63b"><noteRef uk:name="commentary" href="#key-6f0d544f75d001ebd8d55c6b70c3f63b" class="commentary"/>or component</ins>.</p></item></blockList></item></blockList></content></subsection><subsection eId="section-17-3"><num>(3)</num><intro><p>The contract profit rate is—</p></intro><level class="para1" eId="section-17-3-a"><num>(a)</num><content><p>the amount found at the end of step <ins class="substitution first last" ukl:ChangeId="key-7388e50174420e855762ba634ef9b551-1709056571192" ukl:CommentaryRef="key-7388e50174420e855762ba634ef9b551"><noteRef uk:name="commentary" href="#key-7388e50174420e855762ba634ef9b551" class="commentary"/>4</ins> in subsection (2), or</p></content></level><level class="para1" eId="section-17-3-b"><num>(b)</num><content><p>in a case where step <ins class="substitution first last" ukl:ChangeId="key-7388e50174420e855762ba634ef9b551-1709056597255" ukl:CommentaryRef="key-7388e50174420e855762ba634ef9b551"><noteRef uk:name="commentary" href="#key-7388e50174420e855762ba634ef9b551" class="commentary"/>4</ins> is disapplied under section 18(2)(a), the amount found at the end of the last of the steps in subsection (2) that apply in that case.</p></content></level></subsection><subsection eId="section-17-4"><num>(4)</num><intro><p>For the purposes of subsection (2)—</p></intro><level class="para1" eId="section-17-4-a"><num>(a)</num><content><p>“<term refersTo="#term-agreed" eId="term-agreed">agreed</term>” means agreed by the Secretary of State, or an authorised person, and the primary contractor;</p></content></level><level class="para1" eId="section-17-4-b"><num>(b)</num><content><p>the adjustment agreed under step 2, 3 or <ins class="substitution first last" ukl:ChangeId="key-5dfb2cc7f8686b3b5ca98bc863e5d625-1709056866786" ukl:CommentaryRef="key-5dfb2cc7f8686b3b5ca98bc863e5d625"><noteRef uk:name="commentary" href="#key-5dfb2cc7f8686b3b5ca98bc863e5d625" class="commentary"/>4</ins> may be zero.</p></content></level></subsection></section><section eId="section-18"><num>18</num><heading>Contract profit rate: supplementary</heading><subsection eId="section-18-1"><num>(1)</num><content><p>The Secretary of State or an authorised person, and the primary contractor, must have regard to guidance issued by the SSRO in relation to any of the steps set out in section 17(2).</p></content></subsection><subsection eId="section-18-2"><num>(2)</num><intro><p>Single source contract regulations may—</p></intro><level class="para1" eId="section-18-2-a"><num>(a)</num><content><p>disapply the requirement to take any or all of steps 2 to <ins class="substitution first last" ukl:ChangeId="key-dddc6536a3c3b1fe20a9e00f6f41b0af-1709052351681" ukl:CommentaryRef="key-dddc6536a3c3b1fe20a9e00f6f41b0af"><noteRef uk:name="commentary" href="#key-dddc6536a3c3b1fe20a9e00f6f41b0af" class="commentary"/>4</ins> in section 17(2) in relation to a qualifying defence contract the value of which is less than the amount specified for the purposes of this paragraph <ins class="first last" ukl:ChangeId="key-248d332948e4573e7d976f7cc23e2d39-1709052402232" ukl:CommentaryRef="key-248d332948e4573e7d976f7cc23e2d39"><noteRef uk:name="commentary" href="#key-248d332948e4573e7d976f7cc23e2d39" class="commentary"/>, or a component of such a contract</ins>;</p></content></level><level class="para1" eId="section-18-2-b"><num>(b)</num><content><p>provide for any or all of those steps to apply in relation to such a contract <ins class="first last" ukl:ChangeId="key-a8770e6a1fab5669c1bdf4f8a6154fbd-1709052444663" ukl:CommentaryRef="key-a8770e6a1fab5669c1bdf4f8a6154fbd"><noteRef uk:name="commentary" href="#key-a8770e6a1fab5669c1bdf4f8a6154fbd" class="commentary"/>or component</ins> with modifications set out in the regulations;</p></content></level><level class="para1" eId="section-18-2-c"><num>(c)</num><intro><p>where the Secretary of State is a party to a group of qualifying defence contracts with the same primary contractor, provide for section 17(2) to apply in relation to those contracts <ins class="first last" ukl:ChangeId="key-4062b777d6833c17c81119818111e3f9-1709052478555" ukl:CommentaryRef="key-4062b777d6833c17c81119818111e3f9"><noteRef uk:name="commentary" href="#key-4062b777d6833c17c81119818111e3f9" class="commentary"/>or components of those contracts</ins>—</p></intro><level class="para2" eId="section-18-2-c-i"><num>(i)</num><content><p>taken together or individually, and</p></content></level><level class="para2" eId="section-18-2-c-ii"><num>(ii)</num><content><p>with such modifications as may be set out in the regulations.</p></content></level></level></subsection><subsection eId="section-18-3"><num>(3)</num><intro><p>Single source contract regulations may provide that the SSRO—</p></intro><level class="para1" eId="section-18-3-a"><num><ins class="substitution first" ukl:ChangeId="key-6a79956806ff742574e88ec5850321da-1709052507996" ukl:CommentaryRef="key-6a79956806ff742574e88ec5850321da"><noteRef uk:name="commentary" href="#key-6a79956806ff742574e88ec5850321da" class="commentary"/>(a)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-6a79956806ff742574e88ec5850321da-1709052507996" ukl:CommentaryRef="key-6a79956806ff742574e88ec5850321da">may, on an application by a person within subsection (4), determine whether—</ins></p></intro><level class="para2" eId="section-18-3-a-i"><num><ins class="substitution" ukl:ChangeId="key-6a79956806ff742574e88ec5850321da-1709052507996" ukl:CommentaryRef="key-6a79956806ff742574e88ec5850321da">(i)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-6a79956806ff742574e88ec5850321da-1709052507996" ukl:CommentaryRef="key-6a79956806ff742574e88ec5850321da">the baseline profit rate identified under step 1 in section 17(2) is correct in relation to a qualifying defence contract or a component of such a contract;</ins></p></content></level><level class="para2" eId="section-18-3-a-ii"><num><ins class="substitution" ukl:ChangeId="key-6a79956806ff742574e88ec5850321da-1709052507996" ukl:CommentaryRef="key-6a79956806ff742574e88ec5850321da">(ii)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-6a79956806ff742574e88ec5850321da-1709052507996" ukl:CommentaryRef="key-6a79956806ff742574e88ec5850321da">an adjustment agreed under any of steps 2 to 4 in section 17(2) is appropriate;</ins></p></content></level><level class="para2" eId="section-18-3-a-iii"><num><ins class="substitution" ukl:ChangeId="key-6a79956806ff742574e88ec5850321da-1709052507996" ukl:CommentaryRef="key-6a79956806ff742574e88ec5850321da">(iii)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-6a79956806ff742574e88ec5850321da-1709052507996" ukl:CommentaryRef="key-6a79956806ff742574e88ec5850321da">an adjustment agreed under step 3 in section 17(2) is in accordance with the regulations</ins>;</p></content></level></level><level class="para1" eId="section-18-3-b"><num>(b)</num><content><p>may, in consequence of a determination by virtue of paragraph (a) that the amount of such an adjustment is not appropriate, determine that the price payable under the contract is to be adjusted by an amount specified by the SSRO.</p></content></level></subsection><subsection eId="section-18-4"><num>(4)</num><intro><p>The following persons are within this subsection—</p></intro><level class="para1" eId="section-18-4-a"><num>(a)</num><content><p>the Secretary of State,</p></content></level><level class="para1" eId="section-18-4-b"><num>(b)</num><content><p>an authorised person, and</p></content></level><level class="para1" eId="section-18-4-c"><num>(c)</num><content><p>the primary contractor.</p></content></level></subsection></section><section eId="section-19"><num>19</num><heading>Rates <abbr title="Et cetera" xml:lang="la">etc</abbr> relevant to determining contract profit rate</heading><subsection eId="section-19-1"><num>(1)</num><content><p>The Secretary of State must, for each financial year, determine—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>the baseline profit rate,</p></item><item><p><noteRef href="#key-a1741094ce85b4bd5fbb8a3f66bc1102" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></item><item><p>the capital servicing rate for fixed capital, and</p></item><item><p>the capital servicing rate for working capital.</p></item></blockList></content></subsection><subsection eId="section-19-2"><num>(2)</num><content><p>For the purpose of assisting the Secretary of State in determining for a financial year each of the rates mentioned in subsection (1) <noteRef href="#key-6fb12d5bf07b9cde7f2c2ea5515f4be1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>..., the SSRO must provide the Secretary of State with its assessment of what is the appropriate rate <noteRef href="#key-293644fe50273809e9a408e117317174" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... for that year.</p></content></subsection><subsection eId="section-19-3"><num>(3)</num><intro><p>The SSRO—</p></intro><level class="para1" eId="section-19-3-a"><num>(a)</num><content><p>must provide its assessment to the Secretary of State no later than 31 January in the preceding financial year, and</p></content></level><level class="para1" eId="section-19-3-b"><num>(b)</num><content><p>must, in preparing its assessment, have regard to such matters as may be specified in guidance issued by the Secretary of State (as well as other matters that appear to the SSRO to be relevant).</p></content></level></subsection><subsection eId="section-19-4"><num>(4)</num><content><p>The Secretary of State must publish each of the rates mentioned in subsection (1) for a financial year <noteRef href="#key-677af1fa9de2be274ea042ebf273a381" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... in the London Gazette no later than 15 March in the preceding financial year.</p></content></subsection><subsection eId="section-19-5"><num>(5)</num><content><p>Subsection (6) applies if, in the case of a particular rate <noteRef href="#key-07fc0a2a2f789542c754cb22b7c07121" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>..., there is a difference between the rate <noteRef href="#key-82b0a01d8257498a55f025f1e3ffffc5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... determined under subsection (1) and the SSRO's assessment of the appropriate rate <noteRef href="#key-82b0a01d8257498a55f025f1e3ffffc5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... for the financial year in question.</p></content></subsection><subsection eId="section-19-6"><num>(6)</num><content><p>The Secretary of State must, when publishing the relevant rate <noteRef href="#key-075a2fac884e41622008ab0d1bb3224b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>..., also publish reasons for the difference.</p></content></subsection></section><section eId="section-20"><num>20</num><heading>Allowable costs</heading><subsection eId="section-20-1"><num>(1)</num><content><p>The SSRO must issue guidance about determining whether costs are allowable costs under qualifying defence contracts.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><intro><p>In determining whether a particular cost is an allowable cost under a qualifying defence contract <ins class="first last" ukl:ChangeId="key-3a249a155fa7b7d5ea38951ae7762c1f-1709053174137" ukl:CommentaryRef="key-3a249a155fa7b7d5ea38951ae7762c1f"><noteRef uk:name="commentary" href="#key-3a249a155fa7b7d5ea38951ae7762c1f" class="commentary"/>, or, where the contract is divided into components, a component of that contract</ins>, the Secretary of State or an authorised person, and the primary contractor, must be satisfied that the cost is—</p></intro><level class="para1" eId="section-20-2-a"><num>(a)</num><content><p>appropriate,</p></content></level><level class="para1" eId="section-20-2-b"><num>(b)</num><content><p>attributable to the contract <ins class="first last" ukl:ChangeId="key-54ec1bc039cede3b46cb5ae25a36f13c-1709053251239" ukl:CommentaryRef="key-54ec1bc039cede3b46cb5ae25a36f13c"><noteRef uk:name="commentary" href="#key-54ec1bc039cede3b46cb5ae25a36f13c" class="commentary"/>or component</ins>, and</p></content></level><level class="para1" eId="section-20-2-c"><num>(c)</num><content><p>reasonable in the circumstances.</p></content></level></subsection><subsection eId="section-20-2A"><num><ins class="first" ukl:ChangeId="key-d28a49243d7e24c657a8911ca9dbe387-1709053068950" ukl:CommentaryRef="key-d28a49243d7e24c657a8911ca9dbe387"><noteRef uk:name="commentary" href="#key-d28a49243d7e24c657a8911ca9dbe387" class="commentary"/>(2A)</ins></num><content><p><ins ukl:ChangeId="key-d28a49243d7e24c657a8911ca9dbe387-1709053068950" ukl:CommentaryRef="key-d28a49243d7e24c657a8911ca9dbe387">Single source contract regulations may provide that the requirements set out in subsection (2)(a) to (c) are not met in relation to a cost where the cost arises from profits made by a person connected with the primary contractor.</ins></p></content></subsection><subsection eId="section-20-2B"><num><ins ukl:ChangeId="key-d28a49243d7e24c657a8911ca9dbe387-1709053068950" ukl:CommentaryRef="key-d28a49243d7e24c657a8911ca9dbe387">(2B)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d28a49243d7e24c657a8911ca9dbe387-1709053068950" ukl:CommentaryRef="key-d28a49243d7e24c657a8911ca9dbe387">The regulations may specify the circumstances in which a person is connected with the primary contractor.</ins></p></content></subsection><subsection eId="section-20-3"><num>(3)</num><content><p>In determining whether the requirements set out in subsection (2)(a) to (c) are met in relation to a particular cost, the Secretary of State or an authorised person, and the primary contractor, must have regard to guidance issued under subsection (1).</p></content></subsection><subsection eId="section-20-4"><num>(4)</num><content><p>The Secretary of State or an authorised person may at any time require a primary contractor to show (whether by reference to guidance issued under subsection (1) or otherwise) that the requirements set out in subsection (2)(a) to (c) are met in relation to a particular cost claimed by the primary contractor as an allowable cost under a qualifying defence contract <ins class="first last" ukl:ChangeId="key-e18c8e2a95e7e4df8f07d39c4c385129-1709053295984" ukl:CommentaryRef="key-e18c8e2a95e7e4df8f07d39c4c385129"><noteRef uk:name="commentary" href="#key-e18c8e2a95e7e4df8f07d39c4c385129" class="commentary"/>, or where the contract is divided into components, a component of that contract.</ins></p></content></subsection><subsection eId="section-20-5"><num><ins class="substitution first" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a"><noteRef uk:name="commentary" href="#key-e1c9f44f7f1aabab55af319b5643cb1a" class="commentary"/>(5)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">Where a person within subsection (5A) applies to the SSRO for such a determination, the SSRO must determine—</ins></p></intro><level class="para1" eId="section-20-5-a"><num><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">the extent to which a cost is or would be an allowable cost under a qualifying defence contract or a component of such a contract, or</ins></p></content></level><level class="para1" eId="section-20-5-b"><num><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">the extent to which a method which is used or may be used to determine a cost under a qualifying defence contract or a component of such a contract would result in that cost being an allowable cost under such a contract or component.</ins></p></content></level></subsection><subsection eId="section-20-5A"><num><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">(5A)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">The following persons are within this subsection—</ins></p></intro><level class="para1" eId="section-20-5A-a"><num><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">(a)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">the Secretary of State;</ins></p></content></level><level class="para1" eId="section-20-5A-b"><num><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">(b)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">an authorised person;</ins></p></content></level><level class="para1" eId="section-20-5A-c"><num><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">(c)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">a primary contractor under a qualifying defence contract;</ins></p></content></level><level class="para1" eId="section-20-5A-d"><num><ins class="substitution" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">(d)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-e1c9f44f7f1aabab55af319b5643cb1a-1709053092419" ukl:CommentaryRef="key-e1c9f44f7f1aabab55af319b5643cb1a">a potential primary contractor.</ins></p></content></level></subsection><subsection eId="section-20-6"><num>(6)</num><content><p>The SSRO may determine that the price payable under <ins class="substitution first last" ukl:ChangeId="key-74332194e886233e42201c0203d36ca8-1709053353028" ukl:CommentaryRef="key-74332194e886233e42201c0203d36ca8"><noteRef uk:name="commentary" href="#key-74332194e886233e42201c0203d36ca8" class="commentary"/>a qualifying defence contract</ins> is to be adjusted by an amount specified by the SSRO in consequence of a determination under subsection (5), having regard to the extent to which the cost in question was treated as an allowable cost when the price payable under the contract was determined (or last determined) in accordance with section 15.</p></content></subsection></section><section eId="section-21"><num>21</num><heading>Final price adjustment</heading><subsection eId="section-21-1"><num>(1)</num><content><p>Single source contract regulations may provide for adjustments to be made to the total price payable by the Secretary of State under a qualifying defence contract.</p></content></subsection><subsection eId="section-21-2"><num>(2)</num><content><p>The regulations must specify the procedure to be followed in determining the amount of any adjustment.</p></content></subsection><subsection eId="section-21-2A"><num><ins class="first" ukl:ChangeId="key-683d0b478289a113038dd39cb92e369f-1709048524868" ukl:CommentaryRef="key-683d0b478289a113038dd39cb92e369f"><noteRef uk:name="commentary" href="#key-683d0b478289a113038dd39cb92e369f" class="commentary"/>(2A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-683d0b478289a113038dd39cb92e369f-1709048524868" ukl:CommentaryRef="key-683d0b478289a113038dd39cb92e369f">Provision made under subsection (2) may include provision dealing with how, in the case of a qualifying defence contract divided into components, the components are to be taken into account in determining the amount of any adjustments to the total price payable under such a contract.</ins></p></content></subsection><subsection eId="section-21-3"><num>(3)</num><intro><p>Provision made under subsection (2) must include provision for the amount of any adjustment to be determined—</p></intro><level class="para1" eId="section-21-3-a"><num>(a)</num><content><p>by agreement between the Secretary of State, or an authorised person, and the primary contractor, or</p></content></level><level class="para1" eId="section-21-3-b"><num>(b)</num><content><p>by the SSRO, where the matter is referred to it by the Secretary of State, an authorised person or the primary contractor.</p></content></level></subsection><subsection eId="section-21-4"><num>(4)</num><intro><p>Provision under this section may be expressed so as to apply—</p></intro><level class="para1" eId="section-21-4-a"><num>(a)</num><content><p>to particular kinds of qualifying defence contracts;</p></content></level><level class="para1" eId="section-21-4-b"><num>(b)</num><content><p>to qualifying defence contracts the value of which is of or above the amount specified for the purposes of this paragraph.</p></content></level></subsection><subsection eId="section-21-5"><num>(5)</num><intro><p>The Secretary of State may direct that provision under this section does not apply in relation to a qualifying defence contract the value of which is—</p></intro><level class="para1" eId="section-21-5-a"><num>(a)</num><content><p>of or above the amount specified for the purposes of subsection (4)(b), but</p></content></level><level class="para1" eId="section-21-5-b"><num>(b)</num><content><p>less than the amount specified for the purposes of this paragraph in the regulations.</p></content></level></subsection><subsection eId="section-21-6"><num>(6)</num><content><p>The regulations may specify matters to which the Secretary of State must have regard in deciding whether to make a direction under subsection (5).</p></content></subsection></section><section eId="section-22"><num>22</num><heading>Recovery of unpaid amounts</heading><subsection eId="section-22-1"><num>(1)</num><intro><p>This section applies where—</p></intro><level class="para1" eId="section-22-1-a"><num>(a)</num><content><p>the SSRO determines by virtue of section <ins class="first last" ukl:ChangeId="key-4e94fb32cc05cd8026ac8adeabdf0abd-1709053950893" ukl:CommentaryRef="key-4e94fb32cc05cd8026ac8adeabdf0abd"><noteRef uk:name="commentary" href="#key-4e94fb32cc05cd8026ac8adeabdf0abd" class="commentary"/>16(4),</ins> 18(3)(b), 20(6) or 21(3)(b) that the price payable under a qualifying defence contract is to be adjusted, and</p></content></level><level class="para1" eId="section-22-1-b"><num>(b)</num><intro><p>as a result of the adjustment—</p></intro><level class="para2" eId="section-22-1-b-i"><num>(i)</num><content><p>the Secretary of State is required to pay an amount to the primary contractor, or</p></content></level><level class="para2" eId="section-22-1-b-ii"><num>(ii)</num><content><p>the primary contractor is required to repay an amount to the Secretary of State.</p></content></level></level></subsection><subsection eId="section-22-2"><num>(2)</num><content><p>If all or part of the amount mentioned in subsection (1)(b)(i) or (ii) is not paid or repaid before the payment date, the unpaid balance carries interest from that date at the rate for the time being specified in section 17 of the Judgments Act 1838.</p></content></subsection><subsection eId="section-22-3"><num>(3)</num><content><p>The “payment date” is the date determined by the SSRO, in making the determination in question, as the date by which the amount must be paid or repaid.</p></content></subsection><subsection eId="section-22-4"><num>(4)</num><content><p>The person to whom the amount is required to be paid or repaid (“<term refersTo="#term-the-creditor" eId="term-the-creditor">the creditor</term>”) may recover from the other person as a debt due to the creditor the unpaid balance and any unpaid interest.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-transparency"><heading><i>Transparency</i></heading><section eId="section-23"><num>23</num><heading>Records</heading><subsection eId="section-23-1"><num>(1)</num><content><p>Single source contract regulations must contain provision requiring a person (“P”) to keep relevant records.</p></content></subsection><subsection eId="section-23-2"><num>(2)</num><intro><p>“<term refersTo="#term-relevant-records" eId="term-relevant-records">Relevant records</term>” means accounting and other records (whether in hard or electronic form)—</p></intro><level class="para1" eId="section-23-2-a"><num>(a)</num><content><p>which P may reasonably be expected to keep, and</p></content></level><level class="para1" eId="section-23-2-b"><num>(b)</num><content><p>which are sufficiently up-to-date and accurate for use by the Secretary of State or an authorised person for any of the purposes listed in subsection (3).</p></content></level></subsection><subsection eId="section-23-3"><num>(3)</num><intro><p>Those purposes are—</p></intro><level class="para1" eId="section-23-3-a"><num>(a)</num><content><p>auditing reports provided by P under section 24 or 25;</p></content></level><level class="para1" eId="section-23-3-b"><num>(b)</num><intro><p>where P is a primary contractor, verifying—</p></intro><level class="para2" eId="section-23-3-b-i"><num>(i)</num><content><p>whether a cost of P is an allowable cost,</p></content></level><level class="para2" eId="section-23-3-b-ii"><num>(ii)</num><content><p>the reason for any difference between an estimated and actual allowable cost of P, or</p></content></level><level class="para2" eId="section-23-3-b-iii"><num>(iii)</num><content><p>any other matter relating to the price payable to P under a qualifying defence contract;</p></content></level></level><level class="para1" eId="section-23-3-c"><num>(c)</num><content><p>where P is a primary contractor, monitoring P's performance of the obligations to which it is subject under a qualifying defence contract;</p></content></level><level class="para1" eId="section-23-3-d"><num>(d)</num><content><p>where P is a primary contractor, determining whether a contract between P and another person is a qualifying sub-contract.</p></content></level></subsection><subsection eId="section-23-4"><num>(4)</num><intro><p>The regulations may provide for the requirement to keep relevant records—</p></intro><level class="para1" eId="section-23-4-a"><num>(a)</num><content><p>to begin at a time specified by or determined in accordance with the regulations (which may be before a qualifying defence contract is entered into), and</p></content></level><level class="para1" eId="section-23-4-b"><num>(b)</num><content><p>to end at a time so specified or determined.</p></content></level></subsection><subsection eId="section-23-5"><num>(5)</num><intro><p>The regulations may provide—</p></intro><level class="para1" eId="section-23-5-a"><num>(a)</num><content><p>for the Secretary of State or an authorised person to be entitled to examine relevant records where reasonably required for a purpose listed in subsection (3);</p></content></level><level class="para1" eId="section-23-5-b"><num>(b)</num><content><p>for the Secretary of State or an authorised person to require P to make copies available (in hard or electronic form) for the purpose of enabling relevant records to be examined;</p></content></level><level class="para1" eId="section-23-5-c"><num>(c)</num><intro><p>for any entitlement to examine relevant records to be exercisable subject to provision in the regulations—</p></intro><level class="para2" eId="section-23-5-c-i"><num>(i)</num><content><p>about the times at which relevant records may be examined, and</p></content></level><level class="para2" eId="section-23-5-c-ii"><num>(ii)</num><content><p>about notice to be given before they may be examined;</p></content></level></level><level class="para1" eId="section-23-5-d"><num>(d)</num><content><p>for P to be required to comply with any reasonable request by the Secretary of State or an authorised person for further information or explanation relating to relevant records (whether after examination of the records by virtue of paragraph (a) or otherwise).</p></content></level></subsection><subsection eId="section-23-6"><num>(6)</num><content><p>The SSRO may, on an application by P, review the way in which the Secretary of State or an authorised person has acted in exercising any function by virtue of subsection (5).</p></content></subsection><subsection eId="section-23-7"><num>(7)</num><content><p>If, on a review under subsection (6), the SSRO considers that the Secretary of State or an authorised person has acted unreasonably in exercising the function, the SSRO may make a declaration to that effect.</p></content></subsection></section><section eId="section-24"><num>24</num><heading>Reports on qualifying defence contracts</heading><subsection eId="section-24-1"><num>(1)</num><intro><p>Single source contract regulations must require a primary contractor to provide reports relating to qualifying defence contracts to which the primary contractor is a party—</p></intro><level class="para1" eId="section-24-1-a"><num>(a)</num><content><p>to the Secretary of State or an authorised person, and</p></content></level><level class="para1" eId="section-24-1-b"><num>(b)</num><content><p>to the SSRO.</p></content></level></subsection><subsection eId="section-24-2"><num>(2)</num><intro><p>The regulations—</p></intro><level class="para1" eId="section-24-2-a"><num>(a)</num><content><p>must specify the matters to be covered in reports;</p></content></level><level class="para1" eId="section-24-2-b"><num>(b)</num><content><p>must make provision about when reports are to be provided (which may include provision for the Secretary of State or authorised person and the primary contractor to agree when particular reports are to be provided);</p></content></level><level class="para1" eId="section-24-2-c"><num>(c)</num><content><p>may make provision about the form of reports (which may or may not be electronic);</p></content></level><level class="para1" eId="section-24-2-d"><num>(d)</num><content><p>may require a primary contractor to have regard to guidance issued by the SSRO in preparing reports.</p></content></level></subsection><subsection eId="section-24-3"><num>(3)</num><content><p>The regulations may provide for a requirement to provide a specified kind of report to apply, in the case of contracts of a specified kind, only at the request of the Secretary of State or an authorised person.</p><p>“<term refersTo="#term-specified" eId="term-specified">Specified</term>” means specified in the regulations.</p></content></subsection><subsection eId="section-24-4"><num>(4)</num><intro><p>The provision under this section that may, by virtue of section 42(2), be made by the regulations includes different provision—</p></intro><level class="para1" eId="section-24-4-a"><num>(a)</num><content><p>in relation to contracts of different values;</p></content></level><level class="para1" eId="section-24-4-b"><num>(b)</num><content><p>in relation to different kinds of contract;</p></content></level><level class="para1" eId="section-24-4-c"><num>(c)</num><content><p>about the matters to be covered in reports provided at different times.</p></content></level></subsection><subsection eId="section-24-5"><num>(5)</num><content><p>Provision under this section does not apply in cases specified in the regulations.</p></content></subsection></section><section eId="section-25"><num>25</num><heading>Reports on overheads and forward planning <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-25-1"><num>(1)</num><intro><p>Single source contract regulations must require a designated person, for a financial year in relation to which the ongoing contract condition is met, to provide the reports mentioned in subsection (2)—</p></intro><level class="para1" eId="section-25-1-a"><num>(a)</num><content><p>to the Secretary of State or an authorised person, and</p></content></level><level class="para1" eId="section-25-1-b"><num>(b)</num><content><p>to the SSRO.</p></content></level></subsection><subsection eId="section-25-2"><num>(2)</num><intro><p>The reports referred to in subsection (1) are—</p></intro><level class="para1" eId="section-25-2-a"><num>(a)</num><intro><p>reports relating to the overhead costs and forward planning of—</p></intro><level class="para2" eId="section-25-2-a-i"><num>(i)</num><content><p>a person (“P”) who is a party to one or more qualifying defence contracts, and</p></content></level><level class="para2" eId="section-25-2-a-ii"><num>(ii)</num><content><p>any person with whom P is associated, where that person provides anything for the purposes of any qualifying defence contract to which P is a party, and</p></content></level></level><level class="para1" eId="section-25-2-b"><num>(b)</num><content><p>other reports of a specified description.</p></content></level></subsection><subsection eId="section-25-3"><num>(3)</num><intro><p>In this section, “<term refersTo="#term-designated-person" eId="term-designated-person">designated person</term>” means—</p></intro><level class="para1" eId="section-25-3-a"><num><ins class="substitution first" ukl:ChangeId="key-72f4cb9d7e98922177d8368d59f03ec6-1709054029135" ukl:CommentaryRef="key-72f4cb9d7e98922177d8368d59f03ec6"><noteRef uk:name="commentary" href="#key-72f4cb9d7e98922177d8368d59f03ec6" class="commentary"/>(a)</ins></num><intro><p><ins class="substitution" ukl:ChangeId="key-72f4cb9d7e98922177d8368d59f03ec6-1709054029135" ukl:CommentaryRef="key-72f4cb9d7e98922177d8368d59f03ec6">where P is associated with one or more other persons—</ins></p></intro><level class="para2" eId="section-25-3-a-i"><num><ins class="substitution" ukl:ChangeId="key-72f4cb9d7e98922177d8368d59f03ec6-1709054029135" ukl:CommentaryRef="key-72f4cb9d7e98922177d8368d59f03ec6">(i)</ins></num><content><p><ins class="substitution" ukl:ChangeId="key-72f4cb9d7e98922177d8368d59f03ec6-1709054029135" ukl:CommentaryRef="key-72f4cb9d7e98922177d8368d59f03ec6">the ultimate parent undertaking in relation to P and those other persons, or</ins></p></content></level><level class="para2" eId="section-25-3-a-ii"><num><ins class="substitution" ukl:ChangeId="key-72f4cb9d7e98922177d8368d59f03ec6-1709054029135" ukl:CommentaryRef="key-72f4cb9d7e98922177d8368d59f03ec6">(ii)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-72f4cb9d7e98922177d8368d59f03ec6-1709054029135" ukl:CommentaryRef="key-72f4cb9d7e98922177d8368d59f03ec6">where permitted under the regulations in relation to a report mentioned in subsection (2), another person associated with P which that undertaking and the Secretary of State have agreed is to be a designated person in relation to that report, and</ins></p></content></level></level><level class="para1" eId="section-25-3-b"><num>(b)</num><content><p>otherwise, P.</p></content></level></subsection><subsection eId="section-25-4"><num>(4)</num><intro><p>A requirement imposed by virtue of subsection (1) does not apply unless—</p></intro><level class="para1" eId="section-25-4-a"><num>(a)</num><content><p>in a case where P is associated with other persons, P or any of those other persons is a party to at least one qualifying defence contract the value of which is of or above the amount specified in the regulations, or</p></content></level><level class="para1" eId="section-25-4-b"><num>(b)</num><content><p>in a case where P is not associated with other persons, P is a party to at least one qualifying defence contract the value of which is of or above that amount.</p></content></level></subsection><subsection eId="section-25-5"><num>(5)</num><content><p>The “ongoing contract condition” is met in relation to a financial year if, at any time in that year, obligations relating to the supply of goods, works or services under one or more of the qualifying defence contracts referred to in subsection (4)(a) or (b) (as the case may be) are outstanding.</p></content></subsection><subsection eId="section-25-6"><num>(6)</num><intro><p>The regulations—</p></intro><level class="para1" eId="section-25-6-a"><num>(a)</num><content><p>must specify the matters to be covered in reports;</p></content></level><level class="para1" eId="section-25-6-b"><num>(b)</num><content><p>must make provision about when reports are to be provided (which may include provision for the Secretary of State or authorised person and the designated person to agree when particular reports are to be provided);</p></content></level><level class="para1" eId="section-25-6-c"><num>(c)</num><content><p>may make provision about the form of reports (which may or may not be electronic);</p></content></level><level class="para1" eId="section-25-6-d"><num>(d)</num><content><p>may require designated persons to have regard to guidance issued by the SSRO in preparing the reports.</p></content></level></subsection><subsection eId="section-25-7"><num>(7)</num><content><p>The requirement to provide a report does not apply in cases specified in the regulations.</p></content></subsection><subsection eId="section-25-8"><num>(8)</num><content><p>The Secretary of State may direct that a particular contract is not to be taken into account in determining whether the ongoing contract condition is met in relation to a financial year.</p></content></subsection><subsection eId="section-25-9"><num>(9)</num><intro><p>An undertaking is the “<term refersTo="#term-ultimate-parent-undertaking" eId="term-ultimate-parent-undertaking">ultimate parent undertaking</term>” for the purposes of subsection (3) in relation to two or more persons who are associated with each other, or in relation to itself and one or more persons who are associated with it, if the undertaking—</p></intro><level class="para1" eId="section-25-9-a"><num>(a)</num><content><p>is a parent undertaking of those other persons, and</p></content></level><level class="para1" eId="section-25-9-b"><num>(b)</num><content><p>is not a subsidiary undertaking in relation to another undertaking.</p></content></level><wrapUp><p>“Parent undertaking” and “subsidiary undertaking” have the meanings given by section 1162 of the Companies Act 2006.</p></wrapUp></subsection></section><section eId="section-26"><num>26</num><heading>Duty to report relevant events, circumstances and information</heading><subsection eId="section-26-1"><num>(1)</num><intro><p>A primary contractor must notify the Secretary of State on becoming aware of—</p></intro><level class="para1" eId="section-26-1-a"><num>(a)</num><content><p>the occurrence, or likely occurrence, of an event that is likely to have a material effect in relation to a qualifying defence contract to which the primary contractor is a party,</p></content></level><level class="para1" eId="section-26-1-b"><num>(b)</num><content><p>circumstances that are likely to have a material effect in relation to such a contract, or</p></content></level><level class="para1" eId="section-26-1-c"><num>(c)</num><content><p>information that is likely to be materially relevant to such a contract.</p></content></level></subsection><subsection eId="section-26-2"><num>(2)</num><intro><p>For the purposes of this section—</p></intro><level class="para1" eId="section-26-2-a"><num>(a)</num><content><p>an event has a material effect in relation to a contract if it has a material effect in relation to any of the matters mentioned in subsection (3),</p></content></level><level class="para1" eId="section-26-2-b"><num>(b)</num><content><p>circumstances have a material effect in relation to a contract if they have a material effect in relation to any of those matters, and</p></content></level><level class="para1" eId="section-26-2-c"><num>(c)</num><content><p>information is materially relevant to a contract if it is materially relevant to any of those matters.</p></content></level></subsection><subsection eId="section-26-3"><num>(3)</num><intro><p>The matters referred to in subsection (2) are—</p></intro><level class="para1" eId="section-26-3-a"><num>(a)</num><content><p>the costs of the primary contractor under the contract,</p></content></level><level class="para1" eId="section-26-3-b"><num>(b)</num><content><p>the total price payable to the primary contractor under the contract, and</p></content></level><level class="para1" eId="section-26-3-c"><num>(c)</num><content><p>the primary contractor's ability to perform a material obligation of the contract.</p></content></level></subsection></section><section eId="section-27"><num>27</num><heading>Records and reports: restrictions</heading><subsection eId="section-27-1"><num>(1)</num><content><p>Single source contract regulations may disapply a requirement imposed by virtue of section 23(5), 24, 25 or 26 to the extent that compliance with the requirement would require a person (“P”) to contravene a relevant restriction.</p></content></subsection><subsection eId="section-27-2"><num>(2)</num><intro><p>A “relevant restriction” is—</p></intro><level class="para1" eId="section-27-2-a"><num>(a)</num><content><p>a prohibition or restriction imposed by an enactment, or</p></content></level><level class="para1" eId="section-27-2-b"><num>(b)</num><intro><p>an obligation of confidentiality owed by P to another person, unless that other person—</p></intro><level class="para2" eId="section-27-2-b-i"><num>(i)</num><content><p>is associated with P, or</p></content></level><level class="para2" eId="section-27-2-b-ii"><num>(ii)</num><content><p>gives consent to P's complying with the requirement in question.</p></content></level></level></subsection><subsection eId="section-27-3"><num>(3)</num><intro><p>The regulations may provide, in relation to a case where the Secretary of State or an authorised person reasonably suspects that an obligation of confidentiality has been entered into otherwise than for genuine commercial reasons—</p></intro><level class="para1" eId="section-27-3-a"><num>(a)</num><content><p>for the SSRO to investigate the matter on a reference by the Secretary of State or authorised person, and</p></content></level><level class="para1" eId="section-27-3-b"><num>(b)</num><content><p>for a requirement mentioned in subsection (1) to continue to apply (despite provision under that subsection) where the SSRO finds that the obligation was entered into otherwise than for genuine commercial reasons.</p></content></level></subsection><subsection eId="section-27-4"><num>(4)</num><content><p>An obligation of confidentiality entered into wholly or partly for the purpose of avoiding any requirement imposed by virtue of section 23(5), 24, 25 or 26 is to be treated for the purposes of provision under subsection (3) as entered into otherwise than for genuine commercial reasons.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-subcontracts"><heading><i>Sub-contracts</i></heading><section eId="section-28"><num>28</num><heading>Qualifying sub-contracts</heading><subsection eId="section-28-1"><num>(1)</num><content><p>Single source contract regulations may make provision in relation to qualifying sub-contracts.</p></content></subsection><subsection eId="section-28-2"><num>(2)</num><intro><p>For the purposes of this Part—</p></intro><level class="para1" eId="section-28-2-a"><num>(a)</num><content><p>“<term refersTo="#term-qualifying-sub-contract" eId="term-qualifying-sub-contract">qualifying sub-contract</term>” means a contract to which subsection (3) or (4) applies;</p></content></level><level class="para1" eId="section-28-2-b"><num>(b)</num><content><p>references to a “sub-contractor” are to a person who provides anything under such a contract.</p></content></level></subsection><subsection eId="section-28-3"><num>(3)</num><intro><p>This subsection applies to a contract between a primary contractor and another person if—</p></intro><level class="para1" eId="section-28-3-a"><num>(a)</num><content><p>the contract involves the provision by the other person of anything for the purposes of a qualifying defence contract to which the primary contractor is a party,</p></content></level><level class="para1" eId="section-28-3-b"><num>(b)</num><content><p>the award of the contract is not the result of a competitive process,</p></content></level><level class="para1" eId="section-28-3-c"><num>(c)</num><content><p>the value of the contract is of or above the amount specified in the regulations, and</p></content></level><level class="para1" eId="section-28-3-d"><num>(d)</num><content><p>the contract meets such other requirements as may be specified in the regulations.</p></content></level></subsection><subsection eId="section-28-4"><num>(4)</num><intro><p>This subsection applies to a contract (“contract B”) if—</p></intro><level class="para1" eId="section-28-4-a"><num>(a)</num><intro><p>contract B involves the provision of anything for the purposes of another contract (“contract A”) where contract A is—</p></intro><level class="para2" eId="section-28-4-a-i"><num>(i)</num><content><p>a contract to which subsection (3) applies, or</p></content></level><level class="para2" eId="section-28-4-a-ii"><num>(ii)</num><content><p>another contract to which this subsection applies,</p></content></level></level><level class="para1" eId="section-28-4-b"><num>(b)</num><content><p>the award of contract B is not the result of a competitive process,</p></content></level><level class="para1" eId="section-28-4-c"><num>(c)</num><content><p>the value of contract B is of or above the amount specified in the regulations, and</p></content></level><level class="para1" eId="section-28-4-d"><num>(d)</num><content><p>contract B meets such other requirements as may be specified in the regulations.</p></content></level></subsection><subsection eId="section-28-5"><num>(5)</num><content><p>The regulations must make provision for determining for the purposes of this section whether the award of a contract is the result of a competitive process.</p></content></subsection><subsection eId="section-28-6"><num>(6)</num><content><p>The Secretary of State may direct that a particular contract is not a contract to which subsection (3) or (4) applies even though the requirements of that subsection are met in relation to it.</p></content></subsection></section><section eId="section-29"><num>29</num><heading>Determining whether a contract is a qualifying sub-contract</heading><subsection eId="section-29-1"><num>(1)</num><intro><p>Single source contract regulations may provide that where—</p></intro><level class="para1" eId="section-29-1-a"><num>(a)</num><content><p>a primary contractor proposes to enter into a contract with another person (the “prospective sub-contractor”), and</p></content></level><level class="para1" eId="section-29-1-b"><num>(b)</num><content><p>the proposed contract involves the provision by the prospective sub-contractor of anything for the purposes of a qualifying defence contract to which the primary contractor is a party,</p></content></level><wrapUp><p>the primary contractor must assess whether the proposed contract would be a qualifying sub-contract if it were entered into.</p></wrapUp></subsection><subsection eId="section-29-2"><num>(2)</num><intro><p>The regulations may require the primary contractor—</p></intro><level class="para1" eId="section-29-2-a"><num>(a)</num><content><p>to keep a record of an assessment made by virtue of subsection (1), for the purpose of its inclusion in the records which the primary contractor would be required to keep in relation to the proposed contract, by virtue of section 23(3)(d) (records relating to whether a contract is a qualifying sub-contract), if the contract were entered into;</p></content></level><level class="para1" eId="section-29-2-b"><num>(b)</num><content><p>where the assessment is that the proposed contract would be a qualifying sub-contract if it were entered into, to give notice in writing of that fact to the Secretary of State, an authorised person and the prospective sub-contractor;</p></content></level><level class="para1" eId="section-29-2-c"><num><ins class="first" ukl:ChangeId="key-c4f99b33240d3a38119d8d86e5971608-1709053485412" ukl:CommentaryRef="key-c4f99b33240d3a38119d8d86e5971608"><noteRef uk:name="commentary" href="#key-c4f99b33240d3a38119d8d86e5971608" class="commentary"/>(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-c4f99b33240d3a38119d8d86e5971608-1709053485412" ukl:CommentaryRef="key-c4f99b33240d3a38119d8d86e5971608">where the assessment is that the proposed contract would not be a qualifying sub-contract if it were entered into, to give notice in writing of that fact, and of reasons for the assessment, to the Secretary of State, an authorised person and the prospective sub-contractor.</ins></p></content></level></subsection><subsection eId="section-29-3"><num>(3)</num><intro><p>Single source contract regulations may provide that where—</p></intro><level class="para1" eId="section-29-3-a"><num>(a)</num><content><p>a person (“the prospective primary contractor”) proposes to enter into a qualifying defence contract with the Secretary of State (“the proposed qualifying defence contract”),</p></content></level><level class="para1" eId="section-29-3-b"><num>(b)</num><content><p>the prospective primary contractor also proposes to enter into a contract (“the proposed sub-contract”) with another person (“the prospective sub-contractor”), and</p></content></level><level class="para1" eId="section-29-3-c"><num>(c)</num><content><p>the proposed sub-contract involves the provision by the prospective sub-contractor of anything for the purposes of the proposed qualifying defence contract,</p></content></level><wrapUp><p>the prospective primary contractor must assess whether the proposed sub-contract would be a qualifying sub-contract if it and the proposed qualifying defence contract were entered into.</p></wrapUp></subsection><subsection eId="section-29-4"><num>(4)</num><intro><p>The regulations may require the prospective primary contractor—</p></intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content><p>to keep a record of an assessment made by virtue of subsection (3), for the purpose of its inclusion in the records which the prospective primary contractor would be required to keep, by virtue of section 23(3)(d), if the proposed contracts were entered into;</p></content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content><p>where the assessment is that the proposed sub-contract would be a qualifying sub-contract if it and the proposed qualifying defence contract were entered into, to give notice in writing of that fact to the Secretary of State, an authorised person and the prospective sub-contractor;</p></content></level><level class="para1" eId="section-29-4-c"><num><ins class="first" ukl:ChangeId="key-82bdb1259e00bc7f69b10f319a14cef3-1709053514802" ukl:CommentaryRef="key-82bdb1259e00bc7f69b10f319a14cef3"><noteRef uk:name="commentary" href="#key-82bdb1259e00bc7f69b10f319a14cef3" class="commentary"/>(c)</ins></num><content><p><ins class="last" ukl:ChangeId="key-82bdb1259e00bc7f69b10f319a14cef3-1709053514802" ukl:CommentaryRef="key-82bdb1259e00bc7f69b10f319a14cef3">where the assessment is that the proposed sub-contract would not be a qualifying sub-contract if it were entered into, to give notice in writing of that fact, and of reasons for the assessment, to the Secretary of State, an authorised person and the prospective sub-contractor.</ins></p></content></level></subsection><subsection eId="section-29-5"><num>(5)</num><intro><p>Single source contract regulations may contain provision—</p></intro><level class="para1" eId="section-29-5-a"><num>(a)</num><content><p>in relation to a case where an assessment is made by virtue of subsection (1), entitling the prospective sub-contractor to appeal to the SSRO against an assessment that a proposed contract would <ins class="first last" ukl:ChangeId="key-94ae647440dd97bbea054a205b0de2a9-1709053820174" ukl:CommentaryRef="key-94ae647440dd97bbea054a205b0de2a9"><noteRef uk:name="commentary" href="#key-94ae647440dd97bbea054a205b0de2a9" class="commentary"/>or would not</ins> be a qualifying sub-contract if it were entered into;</p></content></level><level class="para1" eId="section-29-5-b"><num>(b)</num><content><p>in relation to a case where an assessment is made by virtue of subsection (3), entitling the prospective sub-contractor to appeal to the SSRO against an assessment that the proposed sub-contract would <ins class="first last" ukl:ChangeId="key-cab41c33ae5d7ba06a66c5afc30fabc1-1709053850812" ukl:CommentaryRef="key-cab41c33ae5d7ba06a66c5afc30fabc1"><noteRef uk:name="commentary" href="#key-cab41c33ae5d7ba06a66c5afc30fabc1" class="commentary"/>or would not</ins> be a qualifying sub-contract if it and the proposed qualifying defence contract were entered into.</p></content></level></subsection><subsection eId="section-29-6"><num>(6)</num><content><p>The regulations must contain provision about the procedure to be followed by the SSRO in determining an appeal by virtue of subsection (5).</p></content></subsection></section><section eId="section-30"><num>30</num><heading>Application of Part to qualifying sub-contracts</heading><subsection eId="section-30-1"><num>(1)</num><content><p>This Part and single source contract regulations apply to qualifying sub-contracts (and to sub-contractors) as they apply to qualifying defence contracts (and to primary contractors).</p></content></subsection><subsection eId="section-30-2"><num>(2)</num><intro><p>In their application by virtue of subsection (1), this Part and single source contract regulations are subject to—</p></intro><level class="para1" eId="section-30-2-a"><num>(a)</num><content><p>such modifications as may be set out in those regulations, and</p></content></level><level class="para1" eId="section-30-2-b"><num>(b)</num><content><p>subsection (5).</p></content></level></subsection><subsection eId="section-30-3"><num>(3)</num><intro><p>The regulations—</p></intro><level class="para1" eId="section-30-3-a"><num>(a)</num><content><p>may provide for the application of this Part and the regulations, by virtue of subsection (1), to end at a time specified by or determined in accordance with the regulations;</p></content></level><level class="para1" eId="section-30-3-b"><num>(b)</num><intro><p>may, in making such provision, provide for determining when this Part and the regulations cease to apply to a qualifying sub-contract which is—</p></intro><level class="para2" eId="section-30-3-b-i"><num>(i)</num><content><p>partly for the purposes of a qualifying defence contract or another qualifying sub-contract, and</p></content></level><level class="para2" eId="section-30-3-b-ii"><num>(ii)</num><content><p>partly for other purposes.</p></content></level></level></subsection><subsection eId="section-30-4"><num>(4)</num><intro><p>The provision that may be made under subsection (3)(b) includes provision—</p></intro><level class="para1" eId="section-30-4-a"><num>(a)</num><content><p>for the <ins class="first last" ukl:ChangeId="key-4af5c96dd5377d9b04cd77bcd25d0f1c-1709054144296" ukl:CommentaryRef="key-4af5c96dd5377d9b04cd77bcd25d0f1c"><noteRef uk:name="commentary" href="#key-4af5c96dd5377d9b04cd77bcd25d0f1c" class="commentary"/>primary contractor or</ins> sub-contractor to give notice to the SSRO that, in <ins class="substitution first last" ukl:ChangeId="key-9df39db9933d9a48447d0f83cf628350-1709054193524" ukl:CommentaryRef="key-9df39db9933d9a48447d0f83cf628350"><noteRef uk:name="commentary" href="#key-9df39db9933d9a48447d0f83cf628350" class="commentary"/>their opinion</ins>, this Part and the regulations should cease to apply to the qualifying sub-contract, and</p></content></level><level class="para1" eId="section-30-4-b"><num>(b)</num><content><p>for the SSRO to be able to overrule such a notice (and accordingly for this Part and the regulations to continue to apply).</p></content></level></subsection><subsection eId="section-30-5"><num>(5)</num><content><p>The regulations may contain provision excluding the application of this Part and the regulations, by virtue of subsection (1), to a qualifying sub-contract in respect of which no notice is given under section 29(2)(b) or (4)(b).</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-compliance"><heading><i>Compliance</i></heading><section eId="section-31"><num>31</num><heading>Compliance notice</heading><subsection eId="section-31-1"><num>(1)</num><intro><p>The Secretary of State may give a person a compliance notice if the Secretary of State thinks—</p></intro><level class="para1" eId="section-31-1-a"><num>(a)</num><content><p>that the person has contravened this section, and</p></content></level><level class="para1" eId="section-31-1-b"><num>(b)</num><content><p>that there are steps that can be taken by the person to remedy the contravention.</p></content></level></subsection><subsection eId="section-31-2"><num>(2)</num><intro><p>A compliance notice is a notice which—</p></intro><level class="para1" eId="section-31-2-a"><num>(a)</num><content><p>specifies those steps, and</p></content></level><level class="para1" eId="section-31-2-b"><num>(b)</num><content><p>directs the person to take them.</p></content></level></subsection><subsection eId="section-31-3"><num>(3)</num><intro><p>A person (“P”) contravenes this section if—</p></intro><level class="para1" eId="section-31-3-a"><num>(a)</num><intro><p>P fails to comply with one or more specified requirements imposed by virtue of—</p></intro><level class="para2" eId="section-31-3-a-i"><num>(i)</num><content><p>section 23 (duty to keep accounting and other records), or</p></content></level><level class="para2" eId="section-31-3-a-ii"><num>(ii)</num><content><p>section 24 or 25 (reports),</p></content></level></level><level class="para1" eId="section-31-3-b"><num>(b)</num><intro><p>P provides a specified report under section 24 that is misleading in a material respect and P—</p></intro><level class="para2" eId="section-31-3-b-i"><num>(i)</num><content><p>knows that the report is misleading, or</p></content></level><level class="para2" eId="section-31-3-b-ii"><num>(ii)</num><content><p>is reckless as to whether the report is misleading,</p></content></level></level><level class="para1" eId="section-31-3-c"><num>(c)</num><content><p>P fails to comply with the duty under section 26 (duty to notify Secretary of State of occurrence <abbr title="Et cetera" xml:lang="la">etc</abbr> of a relevant event),</p></content></level><level class="para1" eId="section-31-3-d"><num>(d)</num><content><p>in circumstances where P is required to make an assessment under section 29(1) or (3) in respect of a proposed contract, P fails to make such an assessment,</p></content></level><level class="para1" eId="section-31-3-e"><num>(e)</num><content><p>P makes a negative assessment under section 29(1) or (3) in respect of a proposed contract and the Secretary of State believes that that assessment is incorrect <noteRef href="#key-96c3b1ca12718744870071863a632476" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="section-31-3-f"><num>(f)</num><content><p>in circumstances where P is required to give the notice mentioned in section 29(2)(b) or (4)(b) in respect of a proposed contract, P fails to give such a notice <ins class="first" ukl:ChangeId="key-bbd8e77dfb9d0c7926a7623a8f811fe2-1709054303174" ukl:CommentaryRef="key-bbd8e77dfb9d0c7926a7623a8f811fe2"><noteRef uk:name="commentary" href="#key-bbd8e77dfb9d0c7926a7623a8f811fe2" class="commentary"/>, or</ins></p></content></level><level class="para1" eId="section-31-3-g"><num><ins ukl:ChangeId="key-bbd8e77dfb9d0c7926a7623a8f811fe2-1709054303174" ukl:CommentaryRef="key-bbd8e77dfb9d0c7926a7623a8f811fe2">(g)</ins></num><content><p><ins class="last" ukl:ChangeId="key-bbd8e77dfb9d0c7926a7623a8f811fe2-1709054303174" ukl:CommentaryRef="key-bbd8e77dfb9d0c7926a7623a8f811fe2">in circumstances where P is required to give the notice mentioned in section 29(2)(c) or (4)(c) in respect of a proposed contract, P fails to give such a notice.</ins></p></content></level></subsection><subsection eId="section-31-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="section-31-4-a"><num>(a)</num><content><p>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in single source contract regulations;</p></content></level><level class="para1" eId="section-31-4-b"><num>(b)</num><content><p>“<term refersTo="#term-negative-assessment" eId="term-negative-assessment">negative assessment</term>” means an assessment that the proposed contract would not be a qualifying sub-contract if it (and, in a case within section 29(3), the proposed qualifying defence contract) were entered into.</p></content></level></subsection><subsection eId="section-31-5"><num>(5)</num><content><p>A compliance notice must be given before the end of the period specified in single source contract regulations.</p></content></subsection><subsection eId="section-31-6"><num>(6)</num><intro><p>A compliance notice must—</p></intro><level class="para1" eId="section-31-6-a"><num>(a)</num><content><p>give details of the contravention,</p></content></level><level class="para1" eId="section-31-6-b"><num>(b)</num><content><p>specify the period within which the steps specified in the notice must be taken, and</p></content></level><level class="para1" eId="section-31-6-c"><num>(c)</num><content><p>state that, if P fails to take those steps, the Secretary of State may give P a penalty notice under section 32.</p></content></level></subsection></section><section eId="section-32"><num>32</num><heading>Penalty notice</heading><subsection eId="section-32-1"><num>(1)</num><content><p>The Secretary of State may give a person a penalty notice in the cases set out in subsections (2) and (3).</p></content></subsection><subsection eId="section-32-2"><num>(2)</num><intro><p>The first case is where the Secretary of State thinks that the person—</p></intro><level class="para1" eId="section-32-2-a"><num>(a)</num><content><p>has failed to take the steps specified in a compliance notice, and</p></content></level><level class="para1" eId="section-32-2-b"><num>(b)</num><content><p>does not have a reasonable excuse for the failure.</p></content></level></subsection><subsection eId="section-32-3"><num>(3)</num><intro><p>The second case is where—</p></intro><level class="para1" eId="section-32-3-a"><num>(a)</num><content><p>the person has contravened section 31, and</p></content></level><level class="para1" eId="section-32-3-b"><num>(b)</num><content><p>the Secretary of State does not think that there are steps that can be taken by the person to remedy the contravention.</p></content></level></subsection><subsection eId="section-32-4"><num>(4)</num><content><p>A penalty notice is a notice requiring the person to pay a penalty to the Secretary of State before the end of the period of six months beginning with the date on which the notice is given.</p></content></subsection><subsection eId="section-32-5"><num>(5)</num><content><p>A penalty notice must be given before the end of the period specified in single source contract regulations.</p></content></subsection><subsection eId="section-32-6"><num>(6)</num><intro><p>A penalty notice must—</p></intro><level class="para1" eId="section-32-6-a"><num>(a)</num><content><p>specify the contravention to which the notice relates,</p></content></level><level class="para1" eId="section-32-6-b"><num>(b)</num><content><p>state the amount of the penalty (as to which, see section 33),</p></content></level><level class="para1" eId="section-32-6-c"><num>(c)</num><content><p>specify the date by which the penalty must be paid (subject to subsection (8)),</p></content></level><level class="para1" eId="section-32-6-d"><num>(d)</num><content><p>specify how the penalty may be paid,</p></content></level><level class="para1" eId="section-32-6-e"><num>(e)</num><content><p>give details of the interest that would be payable by virtue of section 34(2) in relation to any part of the penalty that is unpaid after the date specified under paragraph (c), and</p></content></level><level class="para1" eId="section-32-6-f"><num>(f)</num><content><p>explain how the person may apply to the SSRO, before the end of the period mentioned in subsection (4), for a determination of any of the matters mentioned in subsection (7).</p></content></level></subsection><subsection eId="section-32-7"><num>(7)</num><intro><p>Those matters are—</p></intro><level class="para1" eId="section-32-7-a"><num>(a)</num><content><p>whether the person has contravened section 31 or failed to take the steps specified in a compliance notice (or both);</p></content></level><level class="para1" eId="section-32-7-b"><num>(b)</num><content><p>whether the person had a reasonable excuse for contravening section 31 or failing to take the steps specified in a compliance notice (or both);</p></content></level><level class="para1" eId="section-32-7-c"><num>(c)</num><content><p>the amount of the penalty.</p></content></level></subsection><subsection eId="section-32-8"><num>(8)</num><intro><p>Where a person applies to the SSRO for a determination of a matter mentioned in subsection (7)—</p></intro><level class="para1" eId="section-32-8-a"><num>(a)</num><content><p>the SSRO must determine the matter and the penalty is not payable until it has done so,</p></content></level><level class="para1" eId="section-32-8-b"><num>(b)</num><intro><p>in determining the matter, the SSRO may—</p></intro><level class="para2" eId="section-32-8-b-i"><num>(i)</num><content><p>substitute its own decision for any decision of the Secretary of State (and may vary the amount of the penalty or cancel the penalty notice), and</p></content></level><level class="para2" eId="section-32-8-b-ii"><num>(ii)</num><content><p>state the date by which the penalty must be paid (except where the SSRO cancels the penalty notice), and</p></content></level></level><level class="para1" eId="section-32-8-c"><num>(c)</num><content><p>the SSRO's determination is final.</p></content></level></subsection><subsection eId="section-32-9"><num>(9)</num><content><p>A penalty notice may specify circumstances in which a penalty of a reduced amount specified in the notice is payable.</p></content></subsection><subsection eId="section-32-10"><num>(10)</num><content><p>Single source contract regulations may replace the time limit for the time being specified in subsection (4).</p></content></subsection></section><section eId="section-33"><num>33</num><heading>Amount of penalty</heading><subsection eId="section-33-1"><num>(1)</num><content><p>Where the Secretary of State gives a person a penalty notice in relation to a contravention of section 31, the amount of the penalty must not exceed the amount for the time being specified in relation to the contravention in single source contract regulations.</p></content></subsection><subsection eId="section-33-2"><num>(2)</num><content><p>Subsection (1) does not apply where the Secretary of State gives a person a penalty notice in relation to a contravention within section 31(3)(b) or (c); and in such a case the amount of the penalty is to be calculated as if the contravention were a breach of contract (and is to be calculated in accordance with the general law of contract having effect in England and Wales).</p></content></subsection><subsection eId="section-33-3"><num>(3)</num><content><p>In determining the amount of a penalty under section 32, the Secretary of State must have regard to guidance issued by the SSRO.</p></content></subsection><subsection eId="section-33-4"><num>(4)</num><content><p>The SSRO must publish guidance issued under subsection (3) in such manner as it thinks appropriate.</p></content></subsection><subsection eId="section-33-5"><num>(5)</num><content><p>Subsections (1) to (3) apply in relation to any determination by the SSRO by virtue of section 32(8)(b) as to the amount of a penalty as they apply to the Secretary of State.</p></content></subsection><subsection eId="section-33-6"><num>(6)</num><content><p>The provision that may be made under subsection (1) by virtue of section 42(2) includes power to specify penalties of different amounts according to the value of the contract to which the contravention relates.</p></content></subsection></section><section eId="section-34"><num>34</num><heading>Enforcement</heading><subsection eId="section-34-1"><num>(1)</num><content><p>This section applies where the Secretary of State has given a penalty notice to a person.</p></content></subsection><subsection eId="section-34-2"><num>(2)</num><content><p>If all or part of the penalty is not paid before the payment date, the unpaid balance carries interest from that date at the rate for the time being specified in section 17 of the Judgments Act 1838.</p></content></subsection><subsection eId="section-34-3"><num>(3)</num><content><p>The “payment date” is the date by which the penalty must be paid, as stated in the penalty notice.</p></content></subsection><subsection eId="section-34-4"><num>(4)</num><content><p>But where the SSRO, in determining a matter mentioned in section 32(7), states a new date by which the penalty must be paid, the “payment date” is that new date.</p></content></subsection><subsection eId="section-34-5"><num>(5)</num><content><p>The Secretary of State may recover from the person as a debt due to the Secretary of State the unpaid balance and any unpaid interest.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-ssro-other-functions"><heading>SSRO<i>: other functions</i></heading><section eId="section-35"><num>35</num><heading>Opinions and determinations</heading><subsection eId="section-35-1"><num>(1)</num><intro><p>The SSRO must, on a reference made to it by a person mentioned in subsection (2)—</p></intro><level class="para1" eId="section-35-1-a"><num>(a)</num><content><p>give an opinion on a matter relating to a <noteRef href="#key-930c0561a56bf183a65578d10c19807c" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... contract or a proposed <noteRef href="#key-930c0561a56bf183a65578d10c19807c" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... contract, where the matter is specified for the purposes of this paragraph, or</p></content></level><level class="para1" eId="section-35-1-b"><num>(b)</num><content><p>make a determination in relation to such a matter, where the matter is specified for the purposes of this paragraph.</p></content></level><wrapUp><p>“<term refersTo="#term-specified" eId="term-specified">Specified</term>” means specified in single source contract regulations.</p></wrapUp></subsection><subsection eId="section-35-2"><num>(2)</num><intro><p>The persons referred to in subsection (1) are—</p></intro><level class="para1" eId="section-35-2-a"><num>(a)</num><content><p>the Secretary of State;</p></content></level><level class="para1" eId="section-35-2-b"><num>(b)</num><content><p>an authorised person;</p></content></level><level class="para1" eId="section-35-2-c"><num><ins class="substitution first" ukl:ChangeId="key-988a7cb060336503c01bacf3f569d731-1716981384224" ukl:CommentaryRef="key-988a7cb060336503c01bacf3f569d731"><noteRef uk:name="commentary" href="#key-988a7cb060336503c01bacf3f569d731" class="commentary"/>(c)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-988a7cb060336503c01bacf3f569d731-1716981384224" ukl:CommentaryRef="key-988a7cb060336503c01bacf3f569d731">a person who has entered into a contract with the Secretary of State (a “contractor”);</ins></p></content></level><level class="para1" eId="section-35-2-d"><num>(d)</num><content><p> <ins class="substitution first last" ukl:ChangeId="key-baf79c8e0f5dd1df3a6067d01146eb2e-1716981405096" ukl:CommentaryRef="key-baf79c8e0f5dd1df3a6067d01146eb2e"><noteRef uk:name="commentary" href="#key-baf79c8e0f5dd1df3a6067d01146eb2e" class="commentary"/>a</ins> person who proposes to enter into the contract with the Secretary of State <noteRef href="#key-b79f1c2a43cdd2e1c926d9ae2ea1bb09" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>....</p></content></level></subsection><subsection eId="section-35-3"><num><ins class="substitution first" ukl:ChangeId="key-51dc0e82f68b919f146b3b61ae9e9815-1716981433967" ukl:CommentaryRef="key-51dc0e82f68b919f146b3b61ae9e9815"><noteRef uk:name="commentary" href="#key-51dc0e82f68b919f146b3b61ae9e9815" class="commentary"/>(3)</ins></num><content><p><ins class="substitution last" ukl:ChangeId="key-51dc0e82f68b919f146b3b61ae9e9815-1716981433967" ukl:CommentaryRef="key-51dc0e82f68b919f146b3b61ae9e9815">The SSRO may, on a reference made to it by a person mentioned in subsection (2), give an opinion on any other matter relating to the application or interpretation of this Part or single source contract regulations.</ins></p></content></subsection><subsection eId="section-35-4"><num>(4)</num><intro><p>When giving an opinion or making a determination in relation to any matter under or by virtue of this Part, the SSRO may require the payment of such costs as the SSRO considers appropriate—</p></intro><level class="para1" eId="section-35-4-a"><num>(a)</num><content><p>in the case of a <noteRef href="#key-8c95f48e6c7678a92454f0ce68df4a81" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... contract, by one party to the contract to the other, or</p></content></level><level class="para1" eId="section-35-4-b"><num>(b)</num><content><p>in the case of a proposed contract, by one proposed party to the contract to the other.</p></content></level></subsection><subsection eId="section-35-5"><num>(5)</num><content><p>The costs that the Secretary of State may be required to pay under subsection (4) include, in particular, costs incurred by a <noteRef href="#key-dda2cf78641d443589d0b634399874f3" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... contractor in taking a step specified in a compliance notice under section 31, where the SSRO determines that it was unreasonable for the <noteRef href="#key-dda2cf78641d443589d0b634399874f3" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>... contractor to be required to take that step.</p></content></subsection><subsection eId="section-35-6"><num>(6)</num><content><p>Subsection (7) applies where, in the case of a contract entered into before the relevant date, the contract requires the Review Board for Government Contracts to make a determination or give an opinion in relation to any matter referred to it.</p></content></subsection><subsection eId="section-35-7"><num>(7)</num><content><p>If a party to the contract refers the matter after the relevant date, the determination or opinion is to be made or given instead by the SSRO.</p></content></subsection></section><section eId="section-35A"><num><ins class="first" ukl:ChangeId="key-9849484e424c7c0198587c73966a7de8-1716981276537" ukl:CommentaryRef="key-9849484e424c7c0198587c73966a7de8"><noteRef uk:name="commentary" href="#key-9849484e424c7c0198587c73966a7de8" class="commentary"/>35A</ins></num><heading><ins ukl:ChangeId="key-9849484e424c7c0198587c73966a7de8-1716981276537" ukl:CommentaryRef="key-9849484e424c7c0198587c73966a7de8">Guidance</ins></heading><content><p><ins class="last" ukl:ChangeId="key-9849484e424c7c0198587c73966a7de8-1716981276537" ukl:CommentaryRef="key-9849484e424c7c0198587c73966a7de8">The SSRO may issue such guidance as it considers appropriate in relation to the application or interpretation of this Part or single source contract regulations.</ins></p></content></section><section eId="section-36"><num>36</num><heading>Recording, review and analysis functions</heading><subsection eId="section-36-1"><num>(1)</num><intro><p>The SSRO must keep an up-to-date record of—</p></intro><level class="para1" eId="section-36-1-a"><num>(a)</num><content><p>qualifying defence contracts and qualifying sub-contracts, and</p></content></level><level class="para1" eId="section-36-1-b"><num>(b)</num><content><p>the duration of those contracts.</p></content></level></subsection><subsection eId="section-36-2"><num>(2)</num><content><p>The SSRO must keep under review the extent to which persons subject to requirements under section 24 or 25 (reports) are complying with them.</p></content></subsection><subsection eId="section-36-3"><num>(3)</num><intro><p>The SSRO must, where requested to do so by the Secretary of State—</p></intro><level class="para1" eId="section-36-3-a"><num>(a)</num><content><p>analyse reports provided to it under section 24 or 25, and</p></content></level><level class="para1" eId="section-36-3-b"><num>(b)</num><content><p>provide the results of such analysis to the Secretary of State or an authorised person.</p></content></level></subsection><subsection eId="section-36-4"><num>(4)</num><content><p>In analysing reports provided to it under section 24 or 25, the SSRO may have regard to such matters (other than matters contained in the reports) as it considers appropriate.</p></content></subsection></section><section eId="section-37"><num>37</num><heading>Provision of other services to Secretary of State</heading><subsection eId="section-37-1"><num>(1)</num><content><p>The SSRO and the Secretary of State may make arrangements for the SSRO to provide assistance or other services to the Secretary of State or an authorised person.</p></content></subsection><subsection eId="section-37-2"><num>(2)</num><intro><p>Arrangements made under subsection (1)—</p></intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content><p>may in particular include arrangements for the SSRO to provide information relating to the results of analysis carried out by the SSRO under section 36(3), and</p></content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content><p>may provide for the making of payments by the Secretary of State to the SSRO.</p></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-disclosure-of-information"><heading><i>Disclosure of information</i></heading><section eId="section-38"><num>38</num><heading>Disclosure of information</heading><content><p>Schedule 5 contains provision about disclosure of information obtained under this Part.</p></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-review"><heading><i>Review</i></heading><section eId="section-39"><num>39</num><heading>Review of Part and regulations under it</heading><subsection eId="section-39-1"><num>(1)</num><intro><p>The SSRO must keep under review the provision made by—</p></intro><level class="para1" eId="section-39-1-a"><num>(a)</num><content><p>this Part, and</p></content></level><level class="para1" eId="section-39-1-b"><num>(b)</num><content><p>single source contract regulations which are for the time being in force.</p></content></level></subsection><subsection eId="section-39-2"><num>(2)</num><content><p>The SSRO may recommend to the Secretary of State such changes to the provision mentioned in subsection (1) as it considers appropriate.</p></content></subsection><subsection eId="section-39-3"><num>(3)</num><intro><p>Before the end of each review period, the Secretary of State must—</p></intro><level class="para1" eId="section-39-3-a"><num>(a)</num><content><p>carry out a review of the provision mentioned in subsection (1), and</p></content></level><level class="para1" eId="section-39-3-b"><num>(b)</num><content><p>in doing so, have regard to any recommendations made under subsection (2) at least 6 months before the end of the review period.</p></content></level></subsection><subsection eId="section-39-4"><num>(4)</num><intro><p>In subsection (3), “<term refersTo="#term-review-period" eId="term-review-period">review period</term>” means—</p></intro><level class="para1" eId="section-39-4-a"><num>(a)</num><content><p>the period of 3 years beginning with the relevant date;</p></content></level><level class="para1" eId="section-39-4-b"><num>(b)</num><content><p>each subsequent 5-year period.</p></content></level></subsection></section><section eId="section-40"><num>40</num><heading>Power to repeal Part</heading><subsection eId="section-40-1"><num>(1)</num><content><p>The Secretary of State may by order repeal this Part (apart from this section).</p></content></subsection><subsection eId="section-40-2"><num>(2)</num><content><p>An order under subsection (1) may transfer the SSRO's property, rights and liabilities.</p></content></subsection><subsection eId="section-40-3"><num>(3)</num><content><p>An order under subsection (1) may make consequential, supplementary, incidental or transitional provision.</p></content></subsection><subsection eId="section-40-4"><num>(4)</num><content><p>An order under subsection (1) is to be made by statutory instrument.</p></content></subsection><subsection eId="section-40-5"><num>(5)</num><content><p>An order under subsection (1) may not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.</p></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-general"><heading><i>General</i></heading><section eId="section-41"><num>41</num><heading>Single source contract regulations: time limits and determinations</heading><subsection eId="section-41-1"><num>(1)</num><content><p>Single source contract regulations may make provision imposing limits in relation to the time within which an application, reference or appeal to the SSRO under this Part or the regulations may be made.</p></content></subsection><subsection eId="section-41-2"><num>(2)</num><content><p>Single source contract regulations may specify matters to which the SSRO must have regard in making a determination under this Part or the regulations.</p></content></subsection></section><section eId="section-42"><num>42</num><heading>Single source contract regulations: general</heading><subsection eId="section-42-1"><num>(1)</num><content><p>Single source contract regulations may make consequential, supplementary incidental or transitional provision.</p></content></subsection><subsection eId="section-42-2"><num>(2)</num><content><p>Single source contract regulations may make different provision for different purposes.</p></content></subsection><subsection eId="section-42-3"><num>(3)</num><content><p>Single source contract regulations are to be made by statutory instrument.</p></content></subsection><subsection eId="section-42-4"><num>(4)</num><intro><p>A statutory instrument containing—</p></intro><level class="para1" eId="section-42-4-a"><num>(a)</num><content><p>the first single source contract regulations,</p></content></level><level class="para1" eId="section-42-4-b"><num>(b)</num><content><p>provision made by virtue of section 14(2), (6) or (8) (contracts to which single source contract regulations apply), whether alone or with other provision, <noteRef href="#key-c1ba03c05ea030e6ac47d934f85f528f" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</p></content></level><level class="para1" eId="section-42-4-ba"><num><ins class="first" ukl:ChangeId="key-d2828d81309359e4978e0ddc622d6e65-1709054421057" ukl:CommentaryRef="key-d2828d81309359e4978e0ddc622d6e65"><noteRef uk:name="commentary" href="#key-d2828d81309359e4978e0ddc622d6e65" class="commentary"/>(ba)</ins></num><content><p><ins class="last" ukl:ChangeId="key-d2828d81309359e4978e0ddc622d6e65-1709054421057" ukl:CommentaryRef="key-d2828d81309359e4978e0ddc622d6e65">provision made by virtue of section 15(2)(b) (pricing of contracts), whether alone or with other provision, or</ins></p></content></level><level class="para1" eId="section-42-4-c"><num>(c)</num><content><p>provision made by virtue of section 33 (amount of penalty), whether alone or with other provision,</p></content></level><wrapUp><p>may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.</p></wrapUp></subsection><subsection eId="section-42-5"><num>(5)</num><content><p>Any other statutory instrument containing single source contract regulations is subject to annulment in pursuance of a resolution of either House of Parliament.</p></content></subsection></section><section eId="section-43"><num>43</num><heading>Interpretation <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-43-1"><num>(1)</num><intro><p>In this Part—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-authorised-person" eId="term-authorised-person">authorised person</term>” means a person authorised by the Secretary of State;</p></content></hcontainer><hcontainer name="definition"><content><p> <ins class="first" ukl:ChangeId="key-e0d5039efc40aab7b1aeeb8134e69e16-1709054505668" ukl:CommentaryRef="key-e0d5039efc40aab7b1aeeb8134e69e16"><noteRef uk:name="commentary" href="#key-e0d5039efc40aab7b1aeeb8134e69e16" class="commentary"/>“</ins><term refersTo="#term-component"><ins ukl:ChangeId="key-e0d5039efc40aab7b1aeeb8134e69e16-1709054505668" ukl:CommentaryRef="key-e0d5039efc40aab7b1aeeb8134e69e16">component</ins></term><ins class="last" ukl:ChangeId="key-e0d5039efc40aab7b1aeeb8134e69e16-1709054505668" ukl:CommentaryRef="key-e0d5039efc40aab7b1aeeb8134e69e16">” has the meaning given by section 15(6)</ins>; </p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-financial-year" eId="term-financial-year">financial year</term>” means a year beginning with 1 April;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-primary-contractor" eId="term-primary-contractor">primary contractor</term>” has the meaning given by section 14(9);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-defence-contract" eId="term-qualifying-defence-contract">qualifying defence contract</term>” has the meaning given by section 14(2);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-qualifying-sub-contract" eId="term-qualifying-sub-contract">qualifying sub-contract</term>” has the meaning given by section 28(2);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-date" eId="term-relevant-date">relevant date</term>” has the meaning given by section 14(9);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-single-source-contract-regulations" eId="term-single-source-contract-regulations">single source contract regulations</term>” has the meaning given by section 14(9);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-ssro" eId="term-ssro">SSRO</term>” means the Single Source Regulations Office;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-sub-contractor" eId="term-sub-contractor">sub-contractor</term>” has the meaning given by section 28(2).</p></content></hcontainer></subsection><subsection eId="section-43-2"><num>(2)</num><intro><p>In this Part—</p></intro><level class="para1" eId="section-43-2-a"><num>(a)</num><intro><p>references to the value of a contract—</p></intro><level class="para2" eId="section-43-2-a-i"><num>(i)</num><content><p>are to its value as determined in accordance with single source contract regulations, and</p></content></level><level class="para2" eId="section-43-2-a-ii"><num>(ii)</num><content><p>include references to its value as estimated in accordance with such regulations;</p></content></level></level><level class="para1" eId="section-43-2-b"><num>(b)</num><intro><p>references to costs include references to—</p></intro><level class="para2" eId="section-43-2-b-i"><num>(i)</num><content><p>costs as estimated in accordance with single source contract regulations;</p></content></level><level class="para2" eId="section-43-2-b-ii"><num>(ii)</num><content><p>a combination of actual costs and costs as so estimated.</p></content></level></level></subsection><subsection eId="section-43-3"><num>(3)</num><content><p>For the purposes of this Part, one person is “associated” with another if they are group undertakings in relation to each other.</p></content></subsection><subsection eId="section-43-4"><num>(4)</num><content><p>In subsection (3), “<term refersTo="#term-group-undertaking" eId="term-group-undertaking">group undertaking</term>” has the meaning given by section 1161 of the Companies Act 2006.</p></content></subsection><subsection eId="section-43-5"><num>(5)</num><content><p>So far as there is any inconsistency between a provision of this Part or regulations made under it (provision A) and a provision of a qualifying defence contract (provision B), provision A prevails.</p></content></subsection></section></hcontainer></part>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-3"><num><b>Part 3</b></num><heading>Reserve forces</heading><section eId="section-44"><num>44</num><heading>Renaming of Army Reserve and Territorial Army</heading><subsection eId="section-44-1"><num>(1)</num><content><p>The Army Reserve is renamed the Regular Reserve.</p></content></subsection><subsection eId="section-44-2"><num>(2)</num><content><p>The Territorial Army is renamed the Army Reserve.</p></content></subsection><subsection eId="section-44-3"><num>(3)</num><intro><p>Accordingly, wherever it appears in the enactments mentioned in subsection (4) (unless the context requires otherwise)—</p></intro><level class="para1" eId="section-44-3-a"><num>(a)</num><content><p><mod>for “Army Reserve” substitute <quotedText>“ Regular Reserve ”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-44-3-b"><num>(b)</num><content><p><mod>for “Territorial Army” substitute <quotedText>“ Army Reserve ”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-44-4"><num>(4)</num><content><p>The enactments are—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 68 of the Marriage Act 1949,</p></item><item><p>the Reserve Forces Act 1980 (including any headings),</p></item><item><p>section 22 of the Criminal Appeal Act 1995,</p></item><item><p>the Reserve Forces Act 1996 (other than paragraph 9 of Schedule 8), and</p></item><item><p>the Armed Forces Act 2006.</p></item></blockList></content></subsection><subsection eId="section-44-5"><num>(5)</num><intro><p>In any enactment passed before the relevant date (other than those dealt with by subsections (3) and (4)), and in any instrument or other document made before that date—</p></intro><level class="para1" eId="section-44-5-a"><num>(a)</num><content><p>references to the Army Reserve are to be read, in relation to any time on or after that date, as references to the Regular Reserve, and</p></content></level><level class="para1" eId="section-44-5-b"><num>(b)</num><content><p>references to the Territorial Army (including references which are treated as references to the Territorial Army) are to be read, in relation to any time on or after that date, as references to the Army Reserve.</p></content></level></subsection><subsection eId="section-44-6"><num>(6)</num><content><p>The “relevant date” is the date on which this section comes into force.</p></content></subsection></section><section eId="section-45"><num>45</num><heading>Call out of members of reserve forces</heading><subsection eId="section-45-1"><num>(1)</num><content><p><mod>In Part 4 of the Reserve Forces Act 1996 (special agreements for call out), in section 28(3)(a) (maximum period of service), for “9 months” substitute <quotedText>“ 12 months ”</quotedText>.</mod></p></content></subsection><subsection eId="section-45-2"><num>(2)</num><content><p>Part 6 of that Act (call out for permanent service) is amended as follows.</p></content></subsection><subsection eId="section-45-3"><num>(3)</num><content><p><mod>In section 54(1) (call out for warlike operations), after “order” insert <quotedText>“ under this section ”</quotedText>.</mod></p></content></subsection><subsection eId="section-45-4"><num>(4)</num><content><p><mod>In section 56 (call out for certain operations), for subsections (1) and (1A) substitute—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><content><p>The Secretary of State may make an order under this section authorising the calling out of members of a reserve force if it appears to the Secretary of State that it is necessary or desirable to use members of a reserve force for any purpose for which members of the regular services may be used.</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-45-5"><num>(5)</num><content><p><mod>In the heading of that section, for “operations” substitute <quotedText>“ purposes ”</quotedText>.</mod></p></content></subsection><subsection eId="section-45-6"><num>(6)</num><intro><p>In section 57 (maximum duration of service for call out under section 56)—</p></intro><level class="para1" eId="section-45-6-a"><num>(a)</num><content><p><mod>in subsection (4), for “9 months” substitute <quotedText>“ 12 months ”</quotedText>,</mod></p></content></level><level class="para1" eId="section-45-6-b"><num>(b)</num><content><p><mod>in subsection (6), for “9 months” substitute <quotedText>“ 12 months ”</quotedText>,</mod></p></content></level><level class="para1" eId="section-45-6-c"><num>(c)</num><content><p><mod>in subsection (8)(c), for “3 months” substitute <quotedText>“ 6 months ”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-45-6-d"><num>(d)</num><content><p><mod>in subsection (11), for “27 months” substitute <quotedText>“ 3 years ”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-45-7"><num>(7)</num><content><p><mod>In section 57A (agreement to alter limits in section 57), in subsection (3), for “9 months” substitute <quotedText>“ 12 months ”</quotedText>.</mod></p></content></subsection><subsection eId="section-45-8"><num>(8)</num><intro><p>In section 64 (interpretation of Part 6)—</p></intro><level class="para1" eId="section-45-8-a"><num>(a)</num><content><p>number the existing text as subsection (1), and</p></content></level><level class="para1" eId="section-45-8-b"><num>(b)</num><content><p><mod>after that subsection insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content><p>The powers under sections 52, 54 and 56 to make a call-out order are each to be interpreted as including power to do so in circumstances in which an order could also be made under another of those sections.</p></content></subsection></quotedStructure></mod></p></content></level></subsection><subsection eId="section-45-9"><num>(9)</num><content><p>Schedule 6 contains provision about transitional classes.</p></content></subsection><subsection eId="section-45-10"><num>(10)</num><content><p>In consequence of the amendments made by this section, omit section 28 of the Armed Forces Act 2011.</p></content></subsection></section><section eId="section-46"><num>46</num><heading>Payments to employers <abbr title="Et cetera" xml:lang="la">etc</abbr> of members of reserve forces</heading><subsection eId="section-46-1"><num>(1)</num><content><p><mod>In Part 8 of the Reserve Forces Act 1996 (schemes for exemption and financial assistance), after section 84 insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>84A</num><heading>Other payments to employers <abbr title="Et cetera" xml:lang="la">etc</abbr> of members of reserve forces</heading><subsection><num>(1)</num><intro><p>The Secretary of State may by regulations provide for the making of payments by the Secretary of State to—</p></intro><level class="para1"><num>(a)</num><content><p>an employer whose employee is undertaking relevant reserve force activities or has undertaken such activities while employed by the employer, and</p></content></level><level class="para1"><num>(b)</num><content><p>a person carrying on business in partnership whose partner in the business is undertaking relevant reserve force activities or has undertaken such activities while a partner of the person,</p></content></level><wrapUp><p>but see subsections (3) to (5).</p></wrapUp></subsection><subsection><num>(2)</num><intro><p>For the purposes of this section, a person undertakes relevant reserve force activities when the person—</p></intro><level class="para1"><num>(a)</num><content><p>is in permanent service under Part 4 or under a call-out order,</p></content></level><level class="para1"><num>(b)</num><content><p>undertakes training of a prescribed description while an ordinary member of a reserve force, or</p></content></level><level class="para1"><num>(c)</num><content><p>performs other voluntary duties of a prescribed description while an ordinary member of a reserve force.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The Secretary of State may make regulations under this section only if satisfied that the payments provided for, or such payments taken together with other measures, are likely to encourage persons—</p></intro><level class="para1"><num>(a)</num><content><p>to employ, or continue to employ, members of the reserve forces, or</p></content></level><level class="para1"><num>(b)</num><content><p>to carry on business, or continue to carry on business, in partnership with members of the reserve forces.</p></content></level></subsection><subsection><num>(4)</num><content><p>Regulations under subsection (1)(a) may provide for the making of payments to employers who are self-employed, but not in respect of their own relevant reserve force activities.</p></content></subsection><subsection><num>(5)</num><content><p>Regulations under this section may not provide for the making of payments to be conditional on a financial loss suffered by the employer or the person carrying on business in partnership.</p></content></subsection><subsection><num>(6)</num><content><p>A person making a claim under regulations under this section who is dissatisfied with the determination of the claim may appeal against the determination to a reserve forces appeal tribunal.</p></content></subsection><subsection><num>(7)</num><intro><p>In this section—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-ordinary-member">ordinary member</term>”, in relation to a reserve force, means a member who—</p></intro><level class="para1"><num>(a)</num><content><p>is not a special member of that force, and</p></content></level><level class="para1"><num>(b)</num><content><p>is not a member of that force for the purpose only of becoming a special member;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-prescribed">prescribed</term>” means prescribed by regulations made under this section.</p></content></hcontainer></subsection></section></quotedStructure></mod></p></content></subsection><subsection eId="section-46-2"><num>(2)</num><content><p>Schedule 7 contains supplementary provision.</p></content></subsection></section><section eId="section-47"><num>47</num><heading>Report on volunteer reserve forces</heading><content><p><mod>In Part 11 of the Reserve Forces Act 1996 (reserve associations), after section 113 insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>113A</num><heading>Duty to prepare report on volunteer reserve forces</heading><subsection><num>(1)</num><content><p>An association must prepare an annual report on the state of the volunteer reserve forces so far as concerns the area for which the association is established.</p></content></subsection><subsection><num>(2)</num><content><p>A report on the state of the volunteer reserve forces is a report that sets out the association's assessment of the capabilities of the volunteer reserve forces, having regard to the duties that may be imposed on members of those forces by or under this Act or any other enactment.</p></content></subsection><subsection><num>(3)</num><intro><p>The assessment referred to in subsection (2) must, in particular, include the association's views on the effect of each of the following matters on the capabilities of the volunteer reserve forces—</p></intro><level class="para1"><num>(a)</num><content><p>the recruiting of members for the volunteer reserve forces;</p></content></level><level class="para1"><num>(b)</num><content><p>the retention of members of those forces;</p></content></level><level class="para1"><num>(c)</num><content><p>the provision of training for those forces;</p></content></level><level class="para1"><num>(d)</num><content><p>the upkeep of land and buildings for whose management and maintenance the association is responsible.</p></content></level></subsection><subsection><num>(4)</num><content><p>A report under subsection (1) must also set out the association's assessment of the provision that is made as regards the mental welfare of members and former members of the volunteer reserve forces.</p></content></subsection><subsection><num>(5)</num><intro><p>An association must send a report under subsection (1) to the Secretary of State—</p></intro><level class="para1"><num>(a)</num><content><p>in the case of the first report, before the first anniversary of the day on which the last Future Reserves 2020 report prepared before the coming into force of this section was presented to the Secretary of State, and</p></content></level><level class="para1"><num>(b)</num><content><p>in the case of subsequent reports, before the anniversary of the day on which the first report was laid before Parliament under subsection (6).</p></content></level></subsection><subsection><num>(6)</num><content><p>On receiving a report under subsection (1), the Secretary of State must lay a copy of it before Parliament.</p></content></subsection><subsection><num>(7)</num><content><p>The duties under this section may, instead of being performed by an association, be performed by a joint committee appointed under section 116 by two or more associations in relation to their combined areas.</p></content></subsection><subsection><num>(8)</num><intro><p>Where by virtue of subsection (7) a joint committee has the duty to prepare a report—</p></intro><level class="para1"><num>(a)</num><content><p>references in subsections (1) to (5) to an association are to be read as if they were to the joint committee, and</p></content></level><level class="para1"><num>(b)</num><content><p>section 117(1)(a) (power to regulate manner in which functions are exercised) has effect as if the reference to associations were to the joint committee.</p></content></level></subsection><subsection><num>(9)</num><content><p>In subsection (5)(a), “<term refersTo="#term-future-reserves-2020-report">Future Reserves 2020 report</term>” means a report prepared by the External Scrutiny Group on the Future Reserves 2020 programme.</p></content></subsection></section></quotedStructure></mod></p></content></section><section eId="section-48"><num>48</num><heading>Unfair dismissal of reserve forces: no qualifying period of employment</heading><subsection eId="section-48-1"><num>(1)</num><content><p>The Employment Rights Act 1996 is amended as follows.</p></content></subsection><subsection eId="section-48-2"><num>(2)</num><content><p><mod>In section 108 (unfair dismissal: qualifying period of employment), at the end insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5)</num><content><p>Subsection (1) does not apply if the reason (or, if more than one, the principal reason) for the dismissal is, or is connected with, the employee's membership of a reserve force (as defined in section 374 of the Armed Forces Act 2006).</p></content></subsection></quotedStructure></mod></p></content></subsection><subsection eId="section-48-3"><num>(3)</num><content><p><mod>In section 192(2)(e) (armed forces), after “104C” insert <quotedText>“ , 108(5) ”</quotedText>.</mod></p></content></subsection><subsection eId="section-48-4"><num>(4)</num><content><p>The amendment made by subsection (2) applies only where, in relation to the employee, the effective date of termination (as defined in section 97 of the Employment Rights Act 1996) falls on or after the day on which this section comes into force.</p></content></subsection></section></part>
<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="part-4"><num><b>Part 4</b></num><heading>Final provisions</heading><section eId="section-49"><num>49</num><heading>Extent</heading><subsection eId="section-49-1"><num>(1)</num><content><p>This Act extends to England and Wales, Scotland and Northern Ireland (subject to subsection (2)).</p></content></subsection><subsection eId="section-49-2"><num>(2)</num><content><p>The amendments and repeals made by Part 3 have the same extent as the provisions amended or repealed (ignoring extent by virtue of an Order in Council).</p></content></subsection><subsection eId="section-49-3"><num>(3)</num><content><p>The power conferred by section 158(3) of the Reserve Forces Act 1980 (power to extend to Isle of Man) is exercisable in relation to the amendments of that Act made by section 44.</p></content></subsection><subsection eId="section-49-4"><num>(4)</num><content><p>The power conferred by section 132(3) of the Reserve Forces Act 1996 (power to extend to Channel Islands and Isle of Man) is exercisable in relation to any amendment of that Act that is made by this Act.</p></content></subsection><subsection eId="section-49-5"><num>(5)</num><content><p>The power conferred by section 384(1) of the Armed Forces Act 2006 (power to extend to Channel Islands) is exercisable in relation to the amendments of that Act made by section 44.</p></content></subsection></section><section eId="section-50"><num>50</num><heading>Commencement</heading><subsection eId="section-50-1"><num>(1)</num><content><p>Parts 1 to 3 come into force on such day or days as the Secretary of State may by order made by statutory instrument appoint.</p></content></subsection><subsection eId="section-50-2"><num>(2)</num><content><p>An order under subsection (1) may appoint different days for different purposes.</p></content></subsection><subsection eId="section-50-3"><num>(3)</num><content><p>No statutory instrument containing an order under subsection (1) in respect of Part 1 (with or without provision under subsection (10)) is to be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.</p></content></subsection><subsection eId="section-50-4"><num>(4)</num><intro><p>Before a draft is laid before Parliament in accordance with subsection (3), the Secretary of State must—</p></intro><level class="para1" eId="section-50-4-a"><num>(a)</num><content><p>prepare and lay before Parliament a report on the options for carrying out defence procurement, and</p></content></level><level class="para1" eId="section-50-4-b"><num>(b)</num><content><p>publish the report.</p></content></level></subsection><subsection eId="section-50-5"><num>(5)</num><intro><p>A report on the options for carrying out defence procurement is a report about—</p></intro><level class="para1" eId="section-50-5-a"><num>(a)</num><content><p>the arrangements of a kind mentioned in section 1 that the Secretary of State proposes to make following the coming into force of that section, and</p></content></level><level class="para1" eId="section-50-5-b"><num>(b)</num><content><p>any other options for carrying out defence procurement that the Secretary of State has considered as an alternative to those proposed arrangements.</p></content></level></subsection><subsection eId="section-50-6"><num>(6)</num><intro><p>The report must include—</p></intro><level class="para1" eId="section-50-6-a"><num>(a)</num><content><p>an assessment of the impact of the proposed arrangements and the other options, and</p></content></level><level class="para1" eId="section-50-6-b"><num>(b)</num><content><p>any other information the Secretary of State considers appropriate for the purpose of enabling a proper comparison to be made between the proposed arrangements and the other options.</p></content></level></subsection><subsection eId="section-50-7"><num>(7)</num><content><p>The report must deal with at least one other option under subsection (5)(b), namely the carrying out of defence procurement by the Secretary of State in the way it is carried out at the time of the report.</p></content></subsection><subsection eId="section-50-8"><num>(8)</num><content><p>In subsections (4) to (7) “<term refersTo="#term-defence-procurement" eId="term-defence-procurement">defence procurement</term>” has the meaning given by section 1(8).</p></content></subsection><subsection eId="section-50-9"><num>(9)</num><content><p>This Part comes into force on the day on which this Act is passed.</p></content></subsection><subsection eId="section-50-10"><num>(10)</num><content><p>The Secretary of State may by order made by statutory instrument make transitional, transitory or saving provision in connection with the coming into force of any provision of this Act.</p></content></subsection><subsection eId="section-50-11"><num>(11)</num><content><p>An order under subsection (10) may make different provision for different purposes.</p></content></subsection></section><section eId="section-51"><num>51</num><heading>Short title</heading><content><p>This Act may be cited as the Defence Reform Act 2014.</p></content></section></part>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedules" eId="schedules"><heading>SCHEDULES</heading><hcontainer name="schedule" eId="schedule-1"><num>SCHEDULE 1<authorialNote class="referenceNote"><p> Section 4</p></authorialNote></num><heading>Exemptions relating to premises used by a contractor</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-crossheading-introduction"><heading><i>Introduction</i></heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-premises" eId="term-relevant-premises">relevant premises</term>” means any premises used by a contractor for the purposes of, or for purposes which include, providing defence procurement services to the Secretary of State by virtue of arrangements mentioned in section 1;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-designated-premises" eId="term-designated-premises">designated premises</term>” means relevant premises which are for the time being designated for the purposes of a provision of this Schedule by order made by the Secretary of State.</p></content></hcontainer></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-crossheading-landlord-and-tenant-act-1954-c-56"><heading><i>Landlord and Tenant Act 1954 (c. 56)</i></heading><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><intro><p>Part 2 of the Landlord and Tenant Act 1954 (security of tenure for business and other tenants) does not apply to—</p></intro><level class="para1" eId="schedule-1-paragraph-2-a"><num>(a)</num><content><p>any tenancy granted by the Secretary of State to a contractor in respect of any land in relevant premises, or</p></content></level><level class="para1" eId="schedule-1-paragraph-2-b"><num>(b)</num><content><p>any sub-tenancy of the whole or part of the land comprised in such a tenancy or in a sub-tenancy to which this sub-paragraph applies.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-crossheading-nuclear-installations-act-1965-c-57"><heading><i>Nuclear Installations Act 1965 (c. 57)</i></heading><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-1-paragraph-3-1"><num>(1)</num><content><p>For the purposes of sections 1 and 2 of the Nuclear Installations Act 1965 (restriction of certain installations to licensed sites and prohibition of certain operations), any site in designated premises is to be treated as a site used by a government department.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-3-2"><num>(2)</num><content><p>Sub-paragraph (3) applies if a contractor uses any site in designated premises for a purpose which, if section 1 of that Act applied to the contractor in relation to the site, would require the authority of a nuclear site licence.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-3-3"><num>(3)</num><intro><p>The provisions of that Act other than sections 1 to 6 and 22 have effect as if—</p></intro><level class="para1" eId="schedule-1-paragraph-3-3-a"><num>(a)</num><content><p>the contractor were the licensee under a nuclear site licence in respect of the site, and</p></content></level><level class="para1" eId="schedule-1-paragraph-3-3-b"><num>(b)</num><content><p>any reference to the period of the licensee's responsibility were a reference to any period during which the contractor occupies the site.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-crossheading-health-and-safety-at-work-etc-act-1974-c-37"><heading><i>Health and Safety at Work <abbr title="Et cetera" xml:lang="la">etc</abbr> Act 1974 (c. 37)</i></heading><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-1-paragraph-4-1"><num>(1)</num><intro><p>The Secretary of State may by order exempt a contractor, in relation to relevant premises or activities carried on by a contractor at relevant premises, from any of the following—</p></intro><level class="para1" eId="schedule-1-paragraph-4-1-a"><num>(a)</num><content><p>sections 21 to 25 of the Health and Safety at Work <abbr title="Et cetera" xml:lang="la">etc</abbr> Act 1974;</p></content></level><level class="para1" eId="schedule-1-paragraph-4-1-b"><num>(b)</num><content><p>any other provision of Part 1 of that Act;</p></content></level><level class="para1" eId="schedule-1-paragraph-4-1-c"><num>(c)</num><content><p>any provision of regulations made under that Part.</p></content></level></subparagraph><subparagraph eId="schedule-1-paragraph-4-2"><num>(2)</num><content><p>But an exemption may be conferred by virtue of sub-paragraph (1)(b) or (c) only if, and to the extent that, it appears to the Secretary of State necessary or expedient to do so in the interests of the safety of the State.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-4-3"><num>(3)</num><intro><p>An exemption conferred by virtue of sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-1-paragraph-4-3-a"><num>(a)</num><content><p>may have effect generally or only in particular respects;</p></content></level><level class="para1" eId="schedule-1-paragraph-4-3-b"><num>(b)</num><content><p>may be expressed as having effect in relation to premises for the time being specified in the order.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-crossheading-radioactive-substances-act-1993-c-12"><heading><i>Radioactive Substances Act 1993 (c. 12)</i></heading><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><content><p>The Radioactive Substances Act 1993 has effect, in relation to designated premises and a contractor, as if the designated premises were occupied by the contractor on behalf of the Crown for the purposes of the department of the Secretary of State having responsibility for defence.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-crossheading-environmental-permitting-england-and-wales-regulations-2010-si-2010675"><heading><i> <ins class="substitution first last" ukl:ChangeId="key-898acba9543165bb2f1260ca368e7cf5-1490404297018" ukl:CommentaryRef="key-898acba9543165bb2f1260ca368e7cf5"><noteRef uk:name="commentary" href="#key-898acba9543165bb2f1260ca368e7cf5" class="commentary"/>Environmental Permitting (England and Wales) Regulations 2016</ins> </i></heading><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><content><p> <ins class="substitution first" ukl:ChangeId="key-36efafa630fc66f6e061c79c28569f67-1490404585353" ukl:CommentaryRef="key-36efafa630fc66f6e061c79c28569f67"><noteRef uk:name="commentary" href="#key-36efafa630fc66f6e061c79c28569f67" class="commentary"/>The Environmental Permitting (England and Wales) Regulations 2016 (</ins><ref eId="c00094" href="http://www.legislation.gov.uk/id/uksi/2016/1154"><ins class="substitution" ukl:ChangeId="key-36efafa630fc66f6e061c79c28569f67-1490404585353" ukl:CommentaryRef="key-36efafa630fc66f6e061c79c28569f67">S.I. 2016/1154</ins></ref><ins class="substitution last" ukl:ChangeId="key-36efafa630fc66f6e061c79c28569f67-1490404585353" ukl:CommentaryRef="key-36efafa630fc66f6e061c79c28569f67">)</ins> have effect, in relation to designated premises and a contractor, as if the designated premises were used or occupied by the contractor on behalf of the Crown for the purposes of the department of the Secretary of State having responsibility for defence.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-crossheading-power-to-create-other-exemptions"><heading><i>Power to create other exemptions</i></heading><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-1-paragraph-7-1"><num>(1)</num><content><p>The Secretary of State may by order provide for exemptions for a contractor, in relation to relevant premises or activities carried on by a contractor at relevant premises, from any provision of subordinate legislation.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-7-2"><num>(2)</num><content><p>An order under this paragraph may confer an exemption only if the exemption corresponds or is similar to an exemption for, or immunity of, the Crown.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-7-3"><num>(3)</num><intro><p>An exemption conferred by virtue of sub-paragraph (1)—</p></intro><level class="para1" eId="schedule-1-paragraph-7-3-a"><num>(a)</num><content><p>may have effect generally or only in particular respects;</p></content></level><level class="para1" eId="schedule-1-paragraph-7-3-b"><num>(b)</num><content><p>may be expressed as having effect in relation to premises for the time being specified in the order.</p></content></level></subparagraph><subparagraph eId="schedule-1-paragraph-7-4"><num>(4)</num><content><p>In this paragraph “<term refersTo="#term-subordinate-legislation" eId="term-subordinate-legislation">subordinate legislation</term>” has the same meaning as in the Interpretation Act 1978 (see section 21(1) of that Act).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-crossheading-orders-under-this-schedule"><heading><i>Orders under this Schedule</i></heading><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-1-paragraph-8-1"><num>(1)</num><content><p>Orders under this Schedule are to be made by statutory instrument.</p></content></subparagraph><subparagraph eId="schedule-1-paragraph-8-2"><num>(2)</num><content><p>A statutory instrument containing an order under this Schedule is subject to annulment in pursuance of a resolution of either House of Parliament.</p></content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-2"><num>SCHEDULE 2<authorialNote class="referenceNote"><p> Section 7</p></authorialNote></num><heading>Restrictions on disclosure or use of information</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-introduction"><heading><i>Introduction</i></heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-2-paragraph-1-1"><num>(1)</num><content><p>This Schedule applies where the disclosure or use of relevant information is restricted by an obligation of confidence.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-1-2"><num>(2)</num><content><p>In this Schedule, “<term refersTo="#term-relevant-information" eId="term-relevant-information">relevant information</term>” means information obtained by the Secretary of State (whether before or after the coming into force of this Schedule) under or in connection with a relevant contract.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-1-3"><num>(3)</num><content><p>“<term refersTo="#term-relevant-contract" eId="term-relevant-contract">Relevant contract</term>” means a contract entered into by the Secretary of State at any time before the vesting date for the purposes of defence procurement.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-disclosure-between-the-parties-etc"><heading><i>Disclosure between the parties <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-2-paragraph-2-1"><num>(1)</num><intro><p>The obligation does not prevent or penalise the disclosure of relevant information—</p></intro><level class="para1" eId="schedule-2-paragraph-2-1-a"><num>(a)</num><content><p>between the Secretary of State or an authorised officer of the Secretary of State and a contractor or an employee of or service provider to a contractor,</p></content></level><level class="para1" eId="schedule-2-paragraph-2-1-b"><num>(b)</num><content><p>between a contractor and an employee of or service provider to the contractor, between one such employee and another, between one such service provider and another or between one such employee and one such service provider, or</p></content></level><level class="para1" eId="schedule-2-paragraph-2-1-c"><num>(c)</num><content><p>between a contractor or an employee of or service provider to the contractor and another contractor or an employee of or service provider to the other contractor,</p></content></level><wrapUp><p>if the disclosure is necessary or expedient for the purposes of arrangements mentioned in section 1.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-2-2"><num>(2)</num><intro><p>The obligation does not prevent or penalise the disclosure of relevant information—</p></intro><level class="para1" eId="schedule-2-paragraph-2-2-a"><num>(a)</num><content><p>by a former contractor or an employee of or service provider to a former contractor to the Secretary of State or an authorised officer of the Secretary of State,</p></content></level><level class="para1" eId="schedule-2-paragraph-2-2-b"><num>(b)</num><content><p>by a former contractor or an employee of or service provider to a former contractor to a contractor or an employee of or service provider to a contractor, or</p></content></level><level class="para1" eId="schedule-2-paragraph-2-2-c"><num>(c)</num><content><p>between a former contractor and an employee of or service provider to the former contractor, between one such employee and another, between one such service provider and another or between one such employee and one such service provider,</p></content></level><wrapUp><p>if the disclosure is necessary or expedient for the purposes of arrangements mentioned in section 1.</p></wrapUp></subparagraph><subparagraph eId="schedule-2-paragraph-2-3"><num>(3)</num><intro><p>The obligation does not prevent or penalise the use of relevant information disclosed to a contractor or an employee of or service provider to a contractor under this paragraph if—</p></intro><level class="para1" eId="schedule-2-paragraph-2-3-a"><num>(a)</num><content><p>the information is used by the contractor or the employee or service provider for any purpose for which the Secretary of State could have used the information, and</p></content></level><level class="para1" eId="schedule-2-paragraph-2-3-b"><num>(b)</num><content><p>the use of the information is necessary or expedient for the purposes of arrangements mentioned in section 1.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-disclosure-and-use-for-audit-purposes"><heading><i>Disclosure and use for audit purposes</i></heading><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-2-paragraph-3-1"><num>(1)</num><intro><p>The obligation does not prevent or penalise the disclosure of relevant information by a contractor or an employee of or service provider to a contractor, or the use of that information by the person to whom it is disclosed, if—</p></intro><level class="para1" eId="schedule-2-paragraph-3-1-a"><num>(a)</num><content><p>the disclosure is to the Comptroller and Auditor General, or a person exercising an audit function of the Comptroller's, and the information could lawfully be disclosed to the Comptroller or that person by the Secretary of State, or</p></content></level><level class="para1" eId="schedule-2-paragraph-3-1-b"><num>(b)</num><content><p>the disclosure is to an accounting officer, or a person exercising an audit function of the officer's, and the information could lawfully be disclosed to that officer or person by the Secretary of State.</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-3-2"><num>(2)</num><intro><p>In this paragraph—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-accounting-officer" eId="term-accounting-officer">accounting officer</term>” means an officer appointed by the Treasury under section 5(6) or (8) of the Government Resources and Accounts Act 2000 (resource accounts);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-audit-function" eId="term-audit-function">audit function</term>” in relation to the Comptroller and Auditor General, includes any function under Part 2 of the National Audit Act 1983 (examinations into economy, efficiency and effectiveness).</p></content></hcontainer></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-unauthorised-disclosure-of-information"><heading><i>Unauthorised disclosure of information</i></heading><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-2-paragraph-4-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-2-paragraph-4-1-a"><num>(a)</num><content><p>information is disclosed to a person in accordance with paragraph 2 or 3 (“the original disclosure”), and</p></content></level><level class="para1" eId="schedule-2-paragraph-4-1-b"><num>(b)</num><content><p>that person, or any other person to whom the information is subsequently so disclosed, discloses the information otherwise than in accordance with paragraph 2 or 3 (“the unauthorised disclosure”).</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-4-2"><num>(2)</num><content><p>The person making the unauthorised disclosure is to be treated for all purposes as if that person were subject to the obligation which restricted the original disclosure.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-4-3"><num>(3)</num><content><p>But where the person making the unauthorised disclosure is an employee, the information is to be treated as if it had been disclosed by the person's employer.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-unauthorised-use-of-information"><heading><i>Unauthorised use of information</i></heading><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-2-paragraph-5-1"><num>(1)</num><intro><p>This paragraph applies where—</p></intro><level class="para1" eId="schedule-2-paragraph-5-1-a"><num>(a)</num><content><p>information is disclosed in accordance with paragraph 2 to a person other than the Secretary of State or an authorised officer of the Secretary of State, and</p></content></level><level class="para1" eId="schedule-2-paragraph-5-1-b"><num>(b)</num><content><p>the information is used by that person otherwise than in accordance with paragraph 2(3) (“the unauthorised use”).</p></content></level></subparagraph><subparagraph eId="schedule-2-paragraph-5-2"><num>(2)</num><content><p>The person making the unauthorised use is to be treated for all purposes as if that person were subject to the obligation which restricted the use of the information by the Secretary of State.</p></content></subparagraph><subparagraph eId="schedule-2-paragraph-5-3"><num>(3)</num><content><p>But where the person making the unauthorised use is an employee, the information is to be treated as if it had been used by the person's employer.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-2-crossheading-interpretation-general"><heading><i>Interpretation: general</i></heading><paragraph eId="schedule-2-paragraph-6" class="schProv1"><num>6</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-ancillary-services" eId="term-ancillary-services">ancillary services</term>” means services certified by the Secretary of State to be services appearing to the Secretary of State to be calculated to facilitate, or to be conducive or incidental to, arrangements mentioned in section 1;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-authorised-officer" eId="term-authorised-officer">authorised officer</term>”, in relation to the Secretary of State, means an officer of the Secretary of State who is authorised by the Secretary of State to disclose or (as the case may be) obtain the information in question;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-former-contractor" eId="term-former-contractor">former contractor</term>” means a company which has been a contractor;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-relevant-information" eId="term-relevant-information">relevant information</term>” has the meaning given by paragraph 1(2);</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-service-provider" eId="term-service-provider">service provider</term>”, in relation to a contractor or former contractor, means—</p></intro><level class="para1"><num>(a)</num><content><p>a person who performs ancillary services for that contractor, and</p></content></level><level class="para1"><num>(b)</num><content><p>an employee of such a person.</p></content></level></hcontainer></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-3"><num>SCHEDULE 3<authorialNote class="referenceNote"><p> Section 10</p></authorialNote></num><heading>Transfer schemes under section 10</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-transfer-of-property-rights-and-liabilities"><heading><i>Transfer of property, rights and liabilities</i></heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-3-paragraph-1-1"><num>(1)</num><content><p>On the transfer date, the designated property, rights and liabilities that are to be transferred from the transferor to the transferee are transferred and vest in accordance with the transfer scheme.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-2"><num>(2)</num><content><p>The rights and liabilities that may be transferred by a transfer scheme include those arising under or in connection with a contract of employment.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-1-3"><num>(3)</num><content><p>A certificate by the Secretary of State that anything specified in the certificate has vested in a person by virtue of a transfer scheme is conclusive evidence of that fact for all purposes.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-provision-that-may-be-made-by-a-transfer-scheme"><heading><i>Provision that may be made by a transfer scheme</i></heading><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-3-paragraph-2-1"><num>(1)</num><intro><p>A transfer scheme may make provision—</p></intro><level class="para1" eId="schedule-3-paragraph-2-1-a"><num>(a)</num><content><p>for anything done by or in relation to the transferor in connection with any property, rights or liabilities transferred by the scheme to be treated as done, or to be continued, by or in relation to the transferee;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-b"><num>(b)</num><content><p>for references to the transferor in any agreement (whether written or not), instrument or other document relating to any property, rights or liabilities transferred by the scheme to be treated as references to the transferee;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-c"><num>(c)</num><content><p>about the continuation of legal proceedings;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-d"><num>(d)</num><content><p>for transferring property, rights or liabilities which could not otherwise be transferred or assigned;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-e"><num>(e)</num><content><p>for transferring property, rights and liabilities irrespective of any requirement for consent which would otherwise apply;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-f"><num>(f)</num><content><p>for preventing a right of pre-emption, right of reverter, right of forfeiture, right to compensation or other similar right from arising or becoming exercisable as a result of the transfer of property, rights or liabilities;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-g"><num>(g)</num><content><p>for dispensing with any formality in relation to the transfer of property, rights or liabilities by the scheme;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-h"><num>(h)</num><content><p>for transferring property acquired, or rights or liabilities arising, after the scheme is made but before it takes effect;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-i"><num>(i)</num><content><p>for apportioning property, rights or liabilities;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-j"><num>(j)</num><content><p>for creating rights, or imposing liabilities, in connection with property, rights or liabilities transferred by the scheme;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-k"><num>(k)</num><content><p>for requiring the transferee to enter into any agreement of any kind, or for a purpose, specified in or determined in accordance with the scheme;</p></content></level><level class="para1" eId="schedule-3-paragraph-2-1-l"><num>(l)</num><content><p>which is the same as or similar to that made by the <abbr class="acronym" title="Transfer of Undertakings (Protection of Employment)">TUPE</abbr> regulations, in a case where those regulations do not apply in relation to the transfer.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-2-2"><num>(2)</num><content><p>Sub-paragraph (1)(b) does not apply to references in primary legislation or subordinate legislation.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-compensation"><heading><i>Compensation</i></heading><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><content><p>A transfer scheme may contain provision for the payment of compensation by the Secretary of State to any person whose interests are adversely affected by it.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-foreign-property"><heading><i>Foreign property</i></heading><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-3-paragraph-4-1"><num>(1)</num><content><p>Where a transfer scheme transfers foreign property or a foreign right or liability, the transferor and the transferee must take all necessary steps to ensure that the vesting of the foreign property, right or liability in the transferee by this Schedule is effective under the applicable foreign law.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-4-2"><num>(2)</num><intro><p>Until the vesting of the foreign property, right or liability is effective under the applicable foreign law, the transferor must—</p></intro><level class="para1" eId="schedule-3-paragraph-4-2-a"><num>(a)</num><content><p>hold the property or right for the benefit of the transferee, or</p></content></level><level class="para1" eId="schedule-3-paragraph-4-2-b"><num>(b)</num><content><p>discharge the liability on behalf of the transferee.</p></content></level></subparagraph><subparagraph eId="schedule-3-paragraph-4-3"><num>(3)</num><content><p>Nothing in sub-paragraph (1) or (2) prejudices the effect under the law of a part of the United Kingdom of the vesting of any foreign property, right or liability in the transferee in accordance with a transfer scheme.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-4-4"><num>(4)</num><intro><p>Where—</p></intro><level class="para1" eId="schedule-3-paragraph-4-4-a"><num>(a)</num><content><p>any foreign property, right or liability is acquired or incurred by the transferor in respect of any other property, right or liability, and</p></content></level><level class="para1" eId="schedule-3-paragraph-4-4-b"><num>(b)</num><content><p>by virtue of this paragraph, the transferor holds the other property or right for the benefit of another person or is required to discharge the liability on behalf of another person,</p></content></level><wrapUp><p>the property, right or liability acquired or incurred immediately becomes the property, right or liability of that other person.</p></wrapUp></subparagraph><subparagraph eId="schedule-3-paragraph-4-5"><num>(5)</num><content><p>Sub-paragraphs (1) to (4) have effect in relation to foreign property, rights or liabilities transferred to a person under sub-paragraph (4) as they have effect in relation to property, rights or liabilities transferred in accordance with a transfer scheme.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-4-6"><num>(6)</num><content><p>References in this paragraph to foreign property, or to a foreign right or liability, are references to any property, right or liability as respects which an issue arising in any proceedings would be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-4-7"><num>(7)</num><content><p>Expenses incurred by a transferor under this paragraph must be met by the transferee.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-4-8"><num>(8)</num><content><p>An obligation imposed under this paragraph in relation to property, rights or liabilities is enforceable as if contained in a contract between the transferor and the transferee.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-incidental-etc-provision"><heading><i>Incidental <abbr title="Et cetera" xml:lang="la">etc</abbr> provision</i></heading><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><intro><p>A transfer scheme may—</p></intro><level class="para1" eId="schedule-3-paragraph-5-a"><num>(a)</num><content><p>include incidental, supplementary and consequential provision;</p></content></level><level class="para1" eId="schedule-3-paragraph-5-b"><num>(b)</num><content><p>make transitory or transitional provision or savings;</p></content></level><level class="para1" eId="schedule-3-paragraph-5-c"><num>(c)</num><content><p>make different provision for different purposes;</p></content></level><level class="para1" eId="schedule-3-paragraph-5-d"><num>(d)</num><content><p>make provision subject to exceptions.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-modification-of-transfer-schemes"><heading><i>Modification of transfer schemes</i></heading><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-3-paragraph-6-1"><num>(1)</num><content><p>The Secretary of State may modify a transfer scheme.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-2"><num>(2)</num><content><p>But if a transfer under the scheme has taken effect, any modification that relates to the transfer may be made only with the agreement of the person affected by the modification.</p></content></subparagraph><subparagraph eId="schedule-3-paragraph-6-3"><num>(3)</num><content><p>A modification takes effect from a date specified by the Secretary of State (which may be the date the original scheme came into effect).</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-interpretation-etc"><heading><i>Interpretation <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><paragraph eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><intro><p>In this Schedule—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-designated" eId="term-designated">designated</term>”, in relation to a transfer scheme, means specified in or determined in accordance with the scheme;</p></content></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-primary-legislation" eId="term-primary-legislation">primary legislation</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>an Act of Parliament,</p></content></level><level class="para1"><num>(b)</num><content><p>an Act of the Scottish Parliament,</p></content></level><level class="para1"><num>(c)</num><content><p>an Act or Measure of the National Assembly for Wales, or</p></content></level><level class="para1"><num>(d)</num><content><p>Northern Ireland legislation;</p></content></level></hcontainer><hcontainer name="definition"><intro><p>“<term refersTo="#term-subordinate-legislation" eId="term-subordinate-legislation">subordinate legislation</term>” means—</p></intro><level class="para1"><num>(a)</num><content><p>subordinate legislation within the meaning of the Interpretation Act 1978 (see section 21(1) of that Act), or</p></content></level><level class="para1"><num>(b)</num><content><p>an instrument made under primary legislation of the kind mentioned in paragraph (b), (c) or (d) of the definition of primary legislation above;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-transfer-date" eId="term-the-transfer-date">the transfer date</term>” means a date specified by a transfer scheme as the date on which the scheme is to have effect;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-transferee" eId="term-transferee">transferee</term>”, in relation to a transfer scheme, means a person who is a transferee in respect of property, rights or liabilities for whose transfer the scheme provides;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-transferor" eId="term-transferor">transferor</term>”, in relation to a transfer scheme, means the person for the transfer of whose property, rights or liabilities the scheme provides.</p></content></hcontainer></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-4"><num>SCHEDULE 4<authorialNote class="referenceNote"><p> Section 13</p></authorialNote></num><heading>Single Source Regulations Office</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-membership"><heading><i>Membership</i></heading><paragraph eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-4-paragraph-1-1"><num>(1)</num><intro><p>The SSRO is to consist of the following members—</p></intro><level class="para1" eId="schedule-4-paragraph-1-1-a"><num>(a)</num><content><p>a chair appointed by the Secretary of State,</p></content></level><level class="para1" eId="schedule-4-paragraph-1-1-b"><num>(b)</num><content><p>at least two other members so appointed, and</p></content></level><level class="para1" eId="schedule-4-paragraph-1-1-c"><num>(c)</num><content><p>a chief executive, a chief operating officer and other members appointed in accordance with paragraph 2.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-1-2"><num>(2)</num><content><p>The number of executive members must be less than the number of non-executive members.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-1-3"><num>(3)</num><intro><p>In this Schedule—</p></intro><level class="para1" eId="schedule-4-paragraph-1-3-a"><num>(a)</num><content><p>references to “non-executive members” of the SSRO are to the members mentioned in sub-paragraph (1)(a) and (b), and</p></content></level><level class="para1" eId="schedule-4-paragraph-1-3-b"><num>(b)</num><content><p>references to “executive members” of the SSRO are to the chief executive, the chief operating officer and the other members mentioned in sub-paragraph (1)(c).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-executive-members-appointment-and-status"><heading><i>Executive members: appointment and status</i></heading><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-4-paragraph-2-1"><num>(1)</num><content><p>The executive members of the SSRO are to be appointed by the non-executive members.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-2"><num>(2)</num><content><p>A person may not be appointed as an executive member without the consent of the Secretary of State.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-2-3"><num>(3)</num><content><p>The executive members are to be employees of the SSRO.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-nonexecutive-members-tenure"><heading><i>Non-executive members: tenure</i></heading><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-4-paragraph-3-1"><num>(1)</num><content><p>A person holds and vacates office as a non-executive member of the SSRO in accordance with the terms and conditions of his or her appointment.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-2"><num>(2)</num><intro><p>Appointment as a member of the SSRO is for a term of—</p></intro><level class="para1" eId="schedule-4-paragraph-3-2-a"><num>(a)</num><content><p>not less than three years, and</p></content></level><level class="para1" eId="schedule-4-paragraph-3-2-b"><num>(b)</num><content><p>not more than six years.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-3-3"><num>(3)</num><content><p>A person may at any time resign from office as a non-executive member by giving notice to the Secretary of State.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-4"><num>(4)</num><intro><p>The Secretary of State may at any time remove a member from office on any of the following grounds—</p></intro><level class="para1" eId="schedule-4-paragraph-3-4-a"><num>(a)</num><content><p>incapacity;</p></content></level><level class="para1" eId="schedule-4-paragraph-3-4-b"><num>(b)</num><content><p>misconduct (which may include breach of a term or condition of the member's appointment);</p></content></level><level class="para1" eId="schedule-4-paragraph-3-4-c"><num>(c)</num><content><p>failure to carry out his or her duties.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-3-5"><num>(5)</num><content><p>The Secretary of State may suspend a person from office as a non-executive member if it appears to the Secretary of State that there are or may be grounds to remove the person from office under sub-paragraph (4).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-3-6"><num>(6)</num><content><p>A person who ceases to be a non-executive member is eligible for reappointment.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-suspension-from-office"><heading><i>Suspension from office</i></heading><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-4-paragraph-4-1"><num>(1)</num><content><p>This paragraph applies where a person is suspended under paragraph 3(5).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-2"><num>(2)</num><content><p>The Secretary of State must give notice of the decision to the person; and the suspension takes effect on receipt by the person of the notice.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-3"><num>(3)</num><intro><p>The notice may be—</p></intro><level class="para1" eId="schedule-4-paragraph-4-3-a"><num>(a)</num><content><p>delivered in person (in which case, the person is taken to receive it when it is delivered), or</p></content></level><level class="para1" eId="schedule-4-paragraph-4-3-b"><num>(b)</num><content><p>sent by first-class post to the person's last known address (in which case, the person is taken to receive it on the third day after the day on which it is posted).</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-4"><num>(4)</num><content><p>The initial period of suspension must not exceed six months.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-5"><num>(5)</num><content><p>The Secretary of State may at any time review the suspension.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-4-6"><num>(6)</num><intro><p>The Secretary of State—</p></intro><level class="para1" eId="schedule-4-paragraph-4-6-a"><num>(a)</num><content><p>must review the suspension if requested in writing by the person to do so, but</p></content></level><level class="para1" eId="schedule-4-paragraph-4-6-b"><num>(b)</num><content><p>need not review the suspension less than three months after the beginning of the initial period of suspension.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-7"><num>(7)</num><intro><p>Following a review during a period of suspension, the Secretary of State may—</p></intro><level class="para1" eId="schedule-4-paragraph-4-7-a"><num>(a)</num><content><p>revoke the suspension, or</p></content></level><level class="para1" eId="schedule-4-paragraph-4-7-b"><num>(b)</num><content><p>suspend the person for another period of not more than six months from the expiry of the current period.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-4-8"><num>(8)</num><intro><p>The Secretary of State must revoke the suspension if the Secretary of State decides—</p></intro><level class="para1" eId="schedule-4-paragraph-4-8-a"><num>(a)</num><content><p>that there are no grounds to remove the person from office under paragraph 3(4), or</p></content></level><level class="para1" eId="schedule-4-paragraph-4-8-b"><num>(b)</num><content><p>that there are grounds to do so but does not remove the person from office under that provision.</p></content></level></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-4-paragraph-5-1"><num>(1)</num><content><p>Where a person is suspended from office as the chair under paragraph 3(5), the Secretary of State may appoint a non-executive member as interim chair to exercise the chair's functions.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-5-2"><num>(2)</num><intro><p>Appointment as interim chair is for a term not exceeding the shorter of—</p></intro><level class="para1" eId="schedule-4-paragraph-5-2-a"><num>(a)</num><intro><p>the period ending with either—</p></intro><level class="para2" eId="schedule-4-paragraph-5-2-a-i"><num>(i)</num><content><p>the appointment of a new chair, or</p></content></level><level class="para2" eId="schedule-4-paragraph-5-2-a-ii"><num>(ii)</num><content><p>the revocation or expiry of the existing chair's suspension, and</p></content></level></level><level class="para1" eId="schedule-4-paragraph-5-2-b"><num>(b)</num><content><p>the remainder of the interim chair's term as a non-executive member.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-5-3"><num>(3)</num><content><p>A person who ceases to be the interim chair is eligible for reappointment.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-payment-of-nonexecutive-members"><heading><i>Payment of non-executive members</i></heading><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><intro><p>The SSRO may, with the approval of the Secretary of State—</p></intro><level class="para1" eId="schedule-4-paragraph-6-a"><num>(a)</num><content><p>pay remuneration and allowances to the non-executive members, and</p></content></level><level class="para1" eId="schedule-4-paragraph-6-b"><num>(b)</num><content><p>pay or provide for the payment of pensions, allowances and gratuities to or in respect of a person who is or has been a non-executive member of the SSRO.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-staff-etc"><heading><i>Staff <abbr title="Et cetera" xml:lang="la">etc</abbr></i></heading><paragraph eId="schedule-4-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-4-paragraph-7-1"><num>(1)</num><content><p>The SSRO may appoint employees.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-2"><num>(2)</num><content><p>The SSRO may pay its employees remuneration and allowances.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-3"><num>(3)</num><content><p>Employees of the SSRO are to be appointed on such other terms and conditions as the SSRO may determine.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-7-4"><num>(4)</num><content><p>The SSRO may pay or provide for the payment of pensions, allowances and gratuities to or in respect of any person who is or has been an employee of the SSRO.</p></content></subparagraph></paragraph><paragraph eId="schedule-4-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-4-paragraph-8-1"><num>(1)</num><intro><p>The SSRO may make arrangements—</p></intro><level class="para1" eId="schedule-4-paragraph-8-1-a"><num>(a)</num><content><p>for persons to provide professional services to the SSRO;</p></content></level><level class="para1" eId="schedule-4-paragraph-8-1-b"><num>(b)</num><content><p>for persons to be seconded to the SSRO.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-8-2"><num>(2)</num><content><p>The arrangements may, with the approval of the Secretary of State, include provision for payments by the SSRO.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-superannuation"><heading><i>Superannuation</i></heading><paragraph eId="schedule-4-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-4-paragraph-9-1"><num>(1)</num><content><p><mod>In Schedule 1 to the Superannuation Act 1972 (kinds of employment to which a scheme under section 1 of that Act can apply), at the end of the list of “Other Bodies” insert— <quotedText>“ Single Source Regulations Office. ”</quotedText></mod></p></content></subparagraph><subparagraph eId="schedule-4-paragraph-9-2"><num>(2)</num><content><p>The SSRO must pay to the Minister for the Civil Service, at such times as the Minister may direct, such sums as the Minister may determine in respect of any increase attributable to sub-paragraph (1) in the sums payable out of money provided by Parliament under the Superannuation Act 1972.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-procedure"><heading><i>Procedure</i></heading><paragraph eId="schedule-4-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-4-paragraph-10-1"><num>(1)</num><content><p>The SSRO may determine its own procedure; but this is subject to sub-paragraphs (2) to (6).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-2"><num>(2)</num><content><p>A function of the SSRO under or by virtue of a provision listed in sub-paragraph (3) (provisions for the making of determinations, the giving of opinions <abbr title="Et cetera" xml:lang="la">etc</abbr> by the SSRO) is exercisable by a committee appointed under paragraph 11.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-3"><num>(3)</num><content><p>The provisions are—</p><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item><p>section 16(2)(b) <ins class="first last" ukl:ChangeId="key-720d44d8562bdb940c1a738ee3ab7a14-1709054571988" ukl:CommentaryRef="key-720d44d8562bdb940c1a738ee3ab7a14"><noteRef uk:name="commentary" href="#key-720d44d8562bdb940c1a738ee3ab7a14" class="commentary"/>or (4)</ins>,</p></item><item><p>section 18(3),</p></item><item><p>section 20(5) or (6),</p></item><item><p>section 21(3)(b),</p></item><item><p>section 23(6) or (7),</p></item><item><p>section 27(3),</p></item><item><p>section 29(5),</p></item><item><p>section 30(4)(b),</p></item><item><p>section 32(8), and</p></item><item><p>section 35(1), (3), (4) or (7).</p></item></blockList></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-4"><num>(4)</num><content><p>A committee appointed for the purposes of sub-paragraph (2) must consist of three persons appointed by the chair or any other member who has been authorised (generally or specifically) for that purpose.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-5"><num>(5)</num><content><p>At least one of the members of such a committee must be a person who is not a member or employee of the SSRO.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-10-6"><num>(6)</num><intro><p>A determination by such a committee—</p></intro><level class="para1" eId="schedule-4-paragraph-10-6-a"><num>(a)</num><content><p>is to be made on the basis of a majority of the committee, and</p></content></level><level class="para1" eId="schedule-4-paragraph-10-6-b"><num>(b)</num><content><p>is final.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-10-7"><num>(7)</num><intro><p>The validity of any act of the SSRO is not affected—</p></intro><level class="para1" eId="schedule-4-paragraph-10-7-a"><num>(a)</num><content><p>by any vacancy among the members, or</p></content></level><level class="para1" eId="schedule-4-paragraph-10-7-b"><num>(b)</num><content><p>by any defect in the appointment of a member.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-committees"><heading><i>Committees</i></heading><paragraph eId="schedule-4-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-4-paragraph-11-1"><num>(1)</num><intro><p>The SSRO—</p></intro><level class="para1" eId="schedule-4-paragraph-11-1-a"><num>(a)</num><content><p>may appoint committees, and</p></content></level><level class="para1" eId="schedule-4-paragraph-11-1-b"><num>(b)</num><content><p>may determine the procedure of its committees (subject to paragraph 10).</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-11-2"><num>(2)</num><content><p>A committee may include persons who are not members or employees of the SSRO.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-11-3"><num>(3)</num><intro><p>The SSRO may pay remuneration and allowances to any person who—</p></intro><level class="para1" eId="schedule-4-paragraph-11-3-a"><num>(a)</num><content><p>is a member of a committee, but</p></content></level><level class="para1" eId="schedule-4-paragraph-11-3-b"><num>(b)</num><content><p>is not an employee of the SSRO,</p></content></level><wrapUp><p>whether or not that person is a non-executive member of the SSRO.</p></wrapUp></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-accounts-and-audit"><heading><i>Accounts and audit</i></heading><paragraph eId="schedule-4-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-4-paragraph-12-1"><num>(1)</num><intro><p>The SSRO must—</p></intro><level class="para1" eId="schedule-4-paragraph-12-1-a"><num>(a)</num><content><p>keep proper accounts and proper records in relation to them, and</p></content></level><level class="para1" eId="schedule-4-paragraph-12-1-b"><num>(b)</num><content><p>prepare a statement of accounts in respect of each financial year.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-12-2"><num>(2)</num><intro><p>The Secretary of State may give directions to the SSRO about—</p></intro><level class="para1" eId="schedule-4-paragraph-12-2-a"><num>(a)</num><content><p>the content and form of the statement, and</p></content></level><level class="para1" eId="schedule-4-paragraph-12-2-b"><num>(b)</num><content><p>the methods and principles to be applied in preparing it.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-12-3"><num>(3)</num><content><p>The SSRO must send each statement to the Comptroller and Auditor General within such period after the end of the financial year to which the accounts relate as the Secretary of State may direct.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-12-4"><num>(4)</num><intro><p>The Comptroller and Auditor General must—</p></intro><level class="para1" eId="schedule-4-paragraph-12-4-a"><num>(a)</num><content><p>examine, certify and report on each statement, and</p></content></level><level class="para1" eId="schedule-4-paragraph-12-4-b"><num>(b)</num><content><p>send a copy of each report and certified statement to the Secretary of State.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-annual-report"><heading><i>Annual report</i></heading><paragraph eId="schedule-4-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-4-paragraph-13-1"><num>(1)</num><content><p>The SSRO must prepare a report on its activities during each financial year.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-2"><num>(2)</num><content><p>The report must include the statement of accounts in respect of that year.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-3"><num>(3)</num><content><p>The report relating to a financial year must be prepared as soon as possible after the end of the financial year.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-4"><num>(4)</num><content><p>The SSRO must send the report to the Secretary of State.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-13-5"><num>(5)</num><content><p>The Secretary of State must lay the report before Parliament.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-powers"><heading><i>Powers</i></heading><paragraph eId="schedule-4-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-4-paragraph-14-1"><num>(1)</num><content><p>The SSRO may do anything which is calculated to facilitate the carrying out of its functions or which is incidental to or conducive to the carrying out of those functions; but this is subject to sub-paragraph (2).</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-14-2"><num>(2)</num><content><p>The SSRO may not borrow money, other than temporarily by way of overdraft up to a limit approved by the Secretary of State.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-seal-and-evidence"><heading><i>Seal and evidence</i></heading><paragraph eId="schedule-4-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-4-paragraph-15-1"><num>(1)</num><content><p>The application of the SSRO's seal must be authenticated by the signature of the chief executive or any other member of the SSRO who has been authorised (generally or specifically) for that purpose.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-15-2"><num>(2)</num><intro><p>A document purporting to be duly executed under the SSRO's seal or signed on its behalf—</p></intro><level class="para1" eId="schedule-4-paragraph-15-2-a"><num>(a)</num><content><p>is to be received in evidence, and</p></content></level><level class="para1" eId="schedule-4-paragraph-15-2-b"><num>(b)</num><content><p>is to be taken to be executed or signed in that way, unless the contrary is proved.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-finance"><heading><i>Finance</i></heading><paragraph eId="schedule-4-paragraph-16" class="schProv1"><num>16</num><subparagraph eId="schedule-4-paragraph-16-1"><num>(1)</num><content><p>The Secretary of State may make to the SSRO such payments out of money provided by Parliament as the Secretary of State considers appropriate.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-16-2"><num>(2)</num><content><p>Payments under sub-paragraph (1) may be made at such times, and subject to such conditions, as the Secretary of State considers appropriate.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-status"><heading><i>Status</i></heading><paragraph eId="schedule-4-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-4-paragraph-17-1"><num>(1)</num><intro><p>The SSRO is not to be regarded—</p></intro><level class="para1" eId="schedule-4-paragraph-17-1-a"><num>(a)</num><content><p>as the servant or agent of the Crown, or</p></content></level><level class="para1" eId="schedule-4-paragraph-17-1-b"><num>(b)</num><content><p>as enjoying any status, immunity or privilege of the Crown.</p></content></level></subparagraph><subparagraph eId="schedule-4-paragraph-17-2"><num>(2)</num><content><p>The SSRO's property is not to be regarded as property of, or property held on behalf of, the Crown.</p></content></subparagraph><subparagraph eId="schedule-4-paragraph-17-3"><num>(3)</num><content><p>Service as a member or employee of the SSRO is not service in the civil service of the State.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-parliamentary-commissioner"><heading><i>Parliamentary Commissioner</i></heading><paragraph eId="schedule-4-paragraph-18" class="schProv1"><num>18</num><content><p><mod>In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments <abbr title="Et cetera" xml:lang="la">etc</abbr> subject to investigation), at the appropriate place insert— <quotedText>“ Single Source Regulations Office. ”</quotedText></mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-disqualification"><heading><i>Disqualification</i></heading><paragraph eId="schedule-4-paragraph-19" class="schProv1"><num>19</num><intro><p>In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies of which all members are disqualified)—</p></intro><level class="para1" eId="schedule-4-paragraph-19-a"><num>(a)</num><content><p><mod>at the appropriate place insert— <quotedText>“ The Single Source Regulations Office. ”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-19-b"><num>(b)</num><content><p>omit the entry for The Review Board for Government Contracts.</p></content></level></paragraph><paragraph eId="schedule-4-paragraph-20" class="schProv1"><num>20</num><intro><p>In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (bodies of which all members are disqualified)—</p></intro><level class="para1" eId="schedule-4-paragraph-20-a"><num>(a)</num><content><p><mod>at the appropriate place insert— <quotedText>“ The Single Source Regulations Office. ”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-20-b"><num>(b)</num><content><p>omit the entry for The Review Board for Government Contracts.</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-4-crossheading-freedom-of-information"><heading><i>Freedom of information</i></heading><paragraph eId="schedule-4-paragraph-21" class="schProv1"><num>21</num><intro><p>In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities to which Act applies)—</p></intro><level class="para1" eId="schedule-4-paragraph-21-a"><num>(a)</num><content><p><mod>at the appropriate place insert— <quotedText>“ The Single Source Regulations Office. ”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-4-paragraph-21-b"><num>(b)</num><content><p>omit the entry for The Review Board for Government Contracts.</p></content></level></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-5"><num>SCHEDULE 5<authorialNote class="referenceNote"><p> Section 38</p></authorialNote></num><heading>Restrictions on disclosing information</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-information-to-which-schedule-applies"><heading><i>Information to which Schedule applies</i></heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-5-paragraph-1-1"><num>(1)</num><intro><p>This Schedule applies to information if—</p></intro><level class="para1" eId="schedule-5-paragraph-1-1-a"><num>(a)</num><content><p>it was obtained by the Secretary of State, an authorised person or the SSRO under or by virtue of this Part or otherwise in connection with the carrying out of functions under or by virtue of this Part, or is derived to any extent from information that was so obtained,</p></content></level><level class="para1" eId="schedule-5-paragraph-1-1-b"><num>(b)</num><content><p>it relates to the affairs of an individual or to a particular business, and</p></content></level><level class="para1" eId="schedule-5-paragraph-1-1-c"><num>(c)</num><content><p>it is of a kind specified in single source contract regulations.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-1-2"><num>(2)</num><intro><p>Information ceases to be information to which this Schedule applies—</p></intro><level class="para1" eId="schedule-5-paragraph-1-2-a"><num>(a)</num><content><p>in the case of information relating to the affairs of an individual, when the individual dies, and</p></content></level><level class="para1" eId="schedule-5-paragraph-1-2-b"><num>(b)</num><intro><p>in the case of information relating to a particular business, on the earlier of—</p></intro><level class="para2" eId="schedule-5-paragraph-1-2-b-i"><num>(i)</num><content><p>the day on which the business ceases to be carried on, and</p></content></level><level class="para2" eId="schedule-5-paragraph-1-2-b-ii"><num>(ii)</num><content><p>the end of the period of 30 years beginning with the date on which the information was obtained by the Secretary of State, an authorised person or the SSRO.</p></content></level></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-offence-of-disclosing-information"><heading><i>Offence of disclosing information</i></heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><p>A person commits an offence if the person discloses information to which this Schedule applies.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><p>Sub-paragraph (1) is subject to paragraphs 3 to 5.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><intro><p>A person who is guilty of an offence under sub-paragraph (1) is liable—</p></intro><level class="para1" eId="schedule-5-paragraph-2-3-a"><num>(a)</num><content><p>on summary conviction, to imprisonment for not more than 12 months or to a fine not exceeding the statutory maximum (or both), or</p></content></level><level class="para1" eId="schedule-5-paragraph-2-3-b"><num>(b)</num><content><p>on conviction on indictment, to imprisonment for not more than two years or to a fine (or both).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-3A"><num><ins class="first" ukl:ChangeId="key-1eeed6de3b726c74887cda4e653fb164-1678287526434" ukl:CommentaryRef="key-1eeed6de3b726c74887cda4e653fb164"><noteRef uk:name="commentary" href="#key-1eeed6de3b726c74887cda4e653fb164" class="commentary"/>(3A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-1eeed6de3b726c74887cda4e653fb164-1678287526434" ukl:CommentaryRef="key-1eeed6de3b726c74887cda4e653fb164">In the application of this paragraph in England and Wales, the reference in sub-paragraph (3)(a) to 12 months is to be read as a reference to the general limit in a magistrates’ court (or to 6 months in relation to an offence committed before 2 May 2022).</ins></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-4"><num>(4)</num><intro><p>The reference in sub-paragraph (3)(a) to 12 months is to be read as a reference to 6 months—</p></intro><level class="para1" eId="schedule-5-paragraph-2-4-a"><num><noteRef href="#key-71fd4696c2bec9809a9dc051a828783a" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(a)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="schedule-5-paragraph-2-4-b"><num>(b)</num><content><p>in its application to Northern Ireland.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-2-5"><num>(5)</num><intro><p>If section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 comes into force on or before the day on which this Act is passed—</p></intro><level class="para1" eId="schedule-5-paragraph-2-5-a"><num>(a)</num><content><p>section 85 of that Act (removal of limit on certain fines on conviction by magistrates' court) applies in relation to an offence under sub-paragraph (1) on and after that day as if it were a relevant offence (as defined in section 85(3) of that Act), and</p></content></level><level class="para1" eId="schedule-5-paragraph-2-5-b"><num>(b)</num><content><p>regulations described in section 85(11) of that Act may amend, repeal or otherwise modify sub-paragraph (3)(a).</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-disclosure-with-consent"><heading><i>Disclosure with consent</i></heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><intro><p>Paragraph 2(1) does not apply to a disclosure made with the consent of—</p></intro><level class="para1" eId="schedule-5-paragraph-3-a"><num>(a)</num><content><p>the individual, or</p></content></level><level class="para1" eId="schedule-5-paragraph-3-b"><num>(b)</num><content><p>the person for the time being carrying on the business (or, where there are two or more such persons, all those persons).</p></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-disclosure-of-information-already-available-to-public"><heading><i>Disclosure of information already available to public</i></heading><paragraph eId="schedule-5-paragraph-4" class="schProv1"><num>4</num><content><p>Paragraph 2(1) does not apply to information that has been made available to the public by being disclosed in circumstances in which, or for a purpose for which, disclosure is not precluded by this Schedule.</p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-other-permitted-disclosures"><heading><i>Other permitted disclosures</i></heading><paragraph eId="schedule-5-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-5-paragraph-5-1"><num>(1)</num><intro><p>Paragraph 2(1) does not apply where information is disclosed—</p></intro><level class="para1" eId="schedule-5-paragraph-5-1-a"><num>(a)</num><content><p>for the purpose of facilitating the carrying out of functions of a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975),</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-b"><num>(b)</num><content><p>for the purpose of facilitating the carrying out by the SSRO of any of its functions,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-c"><num>(c)</num><content><p>for the purpose of enabling or assisting an authorised person to carry out any of its functions,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-d"><num>(d)</num><content><p>for the purpose of enabling or assisting a contractor to provide defence procurement services to the Secretary of State by virtue of arrangements mentioned in section 1,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-e"><num>(e)</num><content><p>to the person from whom the information was obtained or, where that person is associated with one or more other persons, to any such associated person,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-f"><num>(f)</num><content><p>by a person to whom the information is disclosed by virtue of paragraph (e),</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-g"><num>(g)</num><content><p>in response to a request under the Freedom of Information Act 2000,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-h"><num>(h)</num><content><p>in connection with the investigation of a criminal offence or for the purposes of criminal proceedings,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-i"><num>(i)</num><content><p>for the purposes of civil proceedings,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-j"><num>(j)</num><content><p>in pursuance of an <abbr class="acronym" title="European Union">EU</abbr> obligation,</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-k"><num>(k)</num><content><p>for the purpose of facilitating the carrying out by the Comptroller and Auditor General of functions, or</p></content></level><level class="para1" eId="schedule-5-paragraph-5-1-l"><num>(l)</num><content><p>in anonymised form.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-5-2"><num>(2)</num><content><p>In sub-paragraph (1)(d), “<term refersTo="#term-contractor" eId="term-contractor">contractor</term>” and “<term refersTo="#term-defence-procurement-services" eId="term-defence-procurement-services">defence procurement services</term>” have the same meanings as in Part 1.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-5-3"><num>(3)</num><content><p>For the purposes of sub-paragraph (1)(l), information is disclosed in anonymised form if no individual or other person to whom the information relates can be identified from it.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-power-to-prohibit-disclosure"><heading><i>Power to prohibit disclosure</i></heading><paragraph eId="schedule-5-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-5-paragraph-6-1"><num>(1)</num><intro><p>The Secretary of State may by order—</p></intro><level class="para1" eId="schedule-5-paragraph-6-1-a"><num>(a)</num><content><p>prohibit the disclosure of information to which this Schedule applies;</p></content></level><level class="para1" eId="schedule-5-paragraph-6-1-b"><num>(b)</num><content><p>provide that a prohibition imposed by virtue of paragraph (a) is subject to exceptions corresponding to those set out in paragraphs 3 to 5 (other than paragraph 5(1)(g));</p></content></level><level class="para1" eId="schedule-5-paragraph-6-1-c"><num>(c)</num><intro><p>provide that a person who discloses information in contravention of such a prohibition commits an offence punishable—</p></intro><level class="para2" eId="schedule-5-paragraph-6-1-c-i"><num>(i)</num><content><p>on summary conviction, with imprisonment for not more than 12 months or with a fine not exceeding the statutory maximum (or both), or</p></content></level><level class="para2" eId="schedule-5-paragraph-6-1-c-ii"><num>(ii)</num><content><p>on conviction on indictment, with imprisonment for not more than two years or with a fine (or both).</p></content></level></level></subparagraph><subparagraph eId="schedule-5-paragraph-6-1A"><num><ins class="first" ukl:ChangeId="key-2b13b1e1c31816603f70b8276e26937e-1678287650586" ukl:CommentaryRef="key-2b13b1e1c31816603f70b8276e26937e"><noteRef uk:name="commentary" href="#key-2b13b1e1c31816603f70b8276e26937e" class="commentary"/>(1A)</ins></num><content><p><ins class="last" ukl:ChangeId="key-2b13b1e1c31816603f70b8276e26937e-1678287650586" ukl:CommentaryRef="key-2b13b1e1c31816603f70b8276e26937e">In the application of this paragraph in England and Wales, the reference in sub-paragraph (1)(c)(i) to 12 months is to be read as a reference to the general limit in a magistrates’ court (or to 6 months in relation to an offence committed before 2 May 2022).</ins></p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-2"><num>(2)</num><intro><p>The reference in sub-paragraph (1)(c)(i) to 12 months is to be read as a reference to 6 months—</p></intro><level class="para1" eId="schedule-5-paragraph-6-2-a"><num><noteRef href="#key-44c0d3312a83e9169f93eb85cfc697fc" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(a)</num><content><p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p></content></level><level class="para1" eId="schedule-5-paragraph-6-2-b"><num>(b)</num><content><p>in its application to Northern Ireland.</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-6-3"><num>(3)</num><content><p>An order under sub-paragraph (1) may repeal paragraphs 2 to 5.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-4"><num>(4)</num><intro><p>If section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 comes into force on or before the day on which this Act is passed—</p></intro><level class="para1" eId="schedule-5-paragraph-6-4-a"><num>(a)</num><content><p>section 85 of that Act (removal of limit on certain fines on conviction by magistrates' court) applies in relation to the power under sub-paragraph (1)(c)(i) on or after that day as if it were a relevant power (as defined in section 85(3) of that Act), and</p></content></level><level class="para1" eId="schedule-5-paragraph-6-4-b"><num>(b)</num><content><p>regulations described in section 85(11) of that Act may amend, repeal or otherwise modify sub-paragraph (1)(c)(i).</p></content></level></subparagraph><subparagraph eId="schedule-5-paragraph-6-5"><num>(5)</num><content><p>An order under sub-paragraph (1) is to be made by statutory instrument.</p></content></subparagraph><subparagraph eId="schedule-5-paragraph-6-6"><num>(6)</num><content><p>A statutory instrument containing an order under sub-paragraph (1) may not be made unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.</p></content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-6"><num>SCHEDULE 6<authorialNote class="referenceNote"><p> Section 45</p></authorialNote></num><heading>Call out of members of reserve forces: transitional classes</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><content><p>The Reserve Forces Act 1996 is amended as follows.</p></content></paragraph><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><content><p>Section 129 (application of Act to persons currently serving in the reserve forces or regular services) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><content><p><mod>In subsection (1), for “the transitional class” substitute<quotedText startQuote="&#x201C;">— </quotedText><quotedStructure endQuote="&#x201D;" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content><p>the original transitional class (see Parts 1 and 2 of that Schedule), or</p></content></level><level class="para1"><num>(b)</num><content><p>the second transitional class (see Parts 3 and 4 of that Schedule)</p></content></level></quotedStructure><inline name="appendText">.</inline></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><content><p><mod>In subsection (2), for “the transitional class” (in both places) substitute <quotedText>“ the original transitional class ”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><intro><p>In subsection (3)—</p></intro><level class="para1" eId="schedule-6-paragraph-2-4-a"><num>(a)</num><content><p><mod>for “In this Act “the transitional class”” substitute<quotedText startQuote="&#x201C;">In this Act— </quotedText><quotedStructure endQuote="&#x201D;" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>the original transitional class”</p></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-6-paragraph-2-4-b"><num>(b)</num><content><p><mod>at the end insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><p>“<term refersTo="#term-the-second-transitional-class">the second transitional class</term>”, in relation to members of the reserve forces, shall be construed in accordance with Part 3 of Schedule 9.</p></quotedStructure></mod></p></content></level></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In the heading of that section, for “persons currently serving in the reserve forces or regular services” substitute <quotedText>“ members of transitional classes ”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content><p>Schedule 9 (application of Act to transitional members) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content><p><mod>In the heading of Part 1, for “transitional class” substitute <quotedText>“ original transitional class ”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-3"><num>(3)</num><content><p><mod>In paragraphs 1(1) and (2) and 6, for “transitional class” substitute <quotedText>“ original transitional class ”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-4"><num>(4)</num><content><p><mod>In paragraph 4(2), after “may” insert <quotedText>“ at any time ”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-5"><num>(5)</num><content><p><mod>In the heading of Part 2, for “transitional class” substitute <quotedText>“ original transitional class ”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-6"><num>(6)</num><content><p><mod>After paragraph 12 insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>12A</num><content><p>In the application of section 28(3)(a) to a special agreement entered into by a transitional member, for the reference to a period not exceeding 12 months there shall be substituted a reference to a period not exceeding 9 months.</p></content></section></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-6-paragraph-4-7"><num>(7)</num><content><p><mod>At the end insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><part><num><b>Part 3</b></num><heading>The second transitional class of members of the reserve forces</heading><section><num>25</num><subsection><num>(1)</num><intro><p>The second transitional class consists of persons who—</p></intro><level class="para1"><num>(a)</num><content><p>are members of a reserve force,</p></content></level><level class="para1"><num>(b)</num><content><p>are not, and have not been, members of the original transitional class,</p></content></level><level class="para1"><num>(c)</num><content><p>for the time being fall within paragraph 26 or 27, and</p></content></level><level class="para1"><num>(d)</num><content><p>have not made an election under paragraph 28.</p></content></level></subsection><subsection><num>(2)</num><content><p>In this Part of this Schedule “<term refersTo="#term-the-appointed-day">the appointed day</term>” means the day on which paragraph 4(7) of Schedule 6 to the Defence Reform Act 2014 (which inserts this Part of this Schedule) comes into force.</p></content></subsection></section><section><num>26</num><intro><p>A person who, immediately before the appointed day, was a member of a reserve force falls within this paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>the person has remained a member of that force without interruption since that time, and</p></content></level><level class="para1"><num>(b)</num><content><p>the person has not extended his or her service in, or become an officer of, that force since that time.</p></content></level></section><section><num>27</num><intro><p>A person who becomes a member of a reserve force on or after the appointed day, on transfer to the reserve from the regular services, falls within this paragraph if—</p></intro><level class="para1"><num>(a)</num><content><p>the person joined the regular services before the appointed day and did not re-enlist, re-engage or extend his or her service, or become an officer, in the regular services on or after that day,</p></content></level><level class="para1"><num>(b)</num><content><p>the person has remained a member of the reserve force concerned without interruption since being transferred from the regular services, and</p></content></level><level class="para1"><num>(c)</num><content><p>the person has not extended his or her service in, or become an officer of, that force since being so transferred.</p></content></level></section><section><num>28</num><subsection><num>(1)</num><content><p>A person who is a member of the second transitional class may elect to cease to be a member of that class.</p></content></subsection><subsection><num>(2)</num><intro><p>A person serving in the regular services who—</p></intro><level class="para1"><num>(a)</num><content><p>joined those services before the appointed day, and</p></content></level><level class="para1"><num>(b)</num><content><p>has not re-enlisted, re-engaged or extended his or her service, or become an officer, on or after that day,</p></content></level><wrapUp><p>may at any time elect not to become a member of the second transitional class on transfer to the reserve.</p></wrapUp></subsection><subsection><num>(3)</num><content><p>An election under this paragraph must be made in the prescribed manner.</p></content></subsection><subsection><num>(4)</num><content><p>A person who has made an election under sub-paragraph (1) ceases to be a member of the second transitional class.</p></content></subsection><subsection><num>(5)</num><content><p>A person who has made an election under sub-paragraph (2) does not become a member of the second transitional class.</p></content></subsection><subsection><num>(6)</num><content><p>An election under this paragraph is irrevocable.</p></content></subsection></section></part><part><num><b>Part 4</b></num><heading>Application of Act to members of the second transitional class</heading><section><num>29</num><content><p>Parts 4 and 6 of this Act apply in relation to members of the second transitional class in accordance with this Part of this Schedule.</p></content></section><section><num>30</num><content><p><mod>Section 28(3)(a) (special agreements: maximum period of service) applies in relation to a special agreement entered into by a member of the second transitional class as if for “12 months” there were substituted <quotedText>“ 9 months ”</quotedText>.</mod></p></content></section><section><num>31</num><subsection><num>(1)</num><content><p>Section 56 (call out for certain purposes) applies in relation to the call out of members of the second transitional class as if the power conferred on the Secretary of State by subsection (1B) were limited to the powers described in sub-paragraphs (2) and (3).</p></content></subsection><subsection><num>(2)</num><intro><p>The first power is to make an order authorising the calling out of members of a reserve force where it appears to the Secretary of State that it is necessary or desirable to use armed forces—</p></intro><level class="para1"><num>(a)</num><content><p>on operations outside the United Kingdom for the protection of life or property, or</p></content></level><level class="para1"><num>(b)</num><content><p>on operations anywhere in the world for the alleviation of distress or the preservation of life or property in time of disaster or apprehended disaster.</p></content></level></subsection><subsection><num>(3)</num><intro><p>The second power is to make an order authorising the calling out of members of a reserve force for the purposes of carrying out work where—</p></intro><level class="para1"><num>(a)</num><content><p>the work is approved in accordance with instructions issued by the Defence Council under the Defence (Armed Forces) Regulations 1939 as being urgent work of national importance, and</p></content></level><level class="para1"><num>(b)</num><content><p>the Defence Council have by order under those Regulations authorised members of any forces to be temporarily employed in such work.</p></content></level></subsection></section><section><num>32</num><intro><p>Section 57 (maximum duration of service for call out under section 56) applies in relation to members of the second transitional class as if—</p></intro><level class="para1"><num>(a)</num><content><p><mod>in subsection (4), for “12 months” there were substituted <quotedText>“ 9 months ”</quotedText>,</mod></p></content></level><level class="para1"><num>(b)</num><content><p><mod>in subsection (6), for “12 months” there were substituted <quotedText>“ 9 months ”</quotedText>,</mod></p></content></level><level class="para1"><num>(c)</num><content><p><mod>in subsection (8)(c), for “6 months” there were substituted <quotedText>“ 3 months ”</quotedText>, and</mod></p></content></level><level class="para1"><num>(d)</num><content><p><mod>in subsection (11), for “3 years” there were substituted <quotedText>“ 27 months ”</quotedText>.</mod></p></content></level></section><section><num>33</num><content><p><mod>Section 57A(3) (agreement to alter limits in section 57) applies in relation to members of the second transitional class as if for “12 months” there were substituted <quotedText>“ 9 months ”</quotedText>.</mod></p></content></section></part></quotedStructure></mod></p></content></subparagraph></paragraph><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><content><p><mod>In the heading of Schedule 9, for “transitional members” substitute <quotedText>“ members of transitional classes ”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="schedule" eId="schedule-7"><num>SCHEDULE 7<authorialNote class="referenceNote"><p> Section 46</p></authorialNote></num><heading>Payments to employers <abbr title="Et cetera" xml:lang="la">etc</abbr> of members of reserve forces: supplementary</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-reserve-forces-act-1996-c-14"><heading><i>Reserve Forces Act 1996 (c. 14)</i></heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><content><p>The Reserve Forces Act 1996 is amended as follows.</p></content></paragraph><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><content><p><mod>In the heading before section 83, for “call out or recall” substitute <quotedText>“ reserve forces ”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><p><mod>In the headings of sections 83 and 84, after “in respect of” insert <quotedText>“ financial loss attributable to ”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-7-paragraph-4-1"><num>(1)</num><content><p>Section 85 (regulations under section 83 or 84: supplementary) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-2"><num>(2)</num><intro><p>In subsection (1)—</p></intro><level class="para1" eId="schedule-7-paragraph-4-2-a"><num>(a)</num><content><p><mod>for “or 84” substitute <quotedText>“ , 84 or 84A ”</quotedText>,</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-4-2-b"><num>(b)</num><content><p>in paragraph (a), omit “and of the kinds of financial loss for which claims can be made”,</p></content></level><level class="para1" eId="schedule-7-paragraph-4-2-c"><num>(c)</num><content><p><mod>after that paragraph insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(aa)</num><content><p>in the case of regulations under section 83 or 84, the descriptions of the kinds of financial loss for which claims can be made;</p></content></level><level class="para1"><num>(ab)</num><content><p>in the case of regulations under section 84A, the descriptions of the kinds of training and other voluntary duties for which claims can be made;</p></content></level></quotedStructure><inline name="appendText">, and</inline></mod></p></content></level><level class="para1" eId="schedule-7-paragraph-4-2-d"><num>(d)</num><content><p><mod>in paragraph (f), after “84” insert <quotedText>“ or 84A ”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-4-3"><num>(3)</num><content><p><mod>In subsection (2), after “losses” insert <quotedText>“ , permanent service, training or other voluntary duties ”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-4"><num>(4)</num><content><p><mod>In subsection (3), for “or 84” substitute <quotedText>“ , 84 or 84A ”</quotedText>.</mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-5"><num>(5)</num><content><p><mod>After that subsection insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content><p>A payment that has been made, or may be made, under regulations under section 84A is not to be taken into account when calculating a financial loss for the purposes of regulations under section 84.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-4-6"><num>(6)</num><content><p><mod>In subsection (5), for “The regulations” substitute <quotedText>“ Regulations under section 83 or 84 ”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><content><p><mod>Accordingly, in the heading of section 85, for “or 84” substitute <quotedText>“ , 84 or 84A ”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-7-paragraph-6-1"><num>(1)</num><content><p>Section 86 (power to suspend payments due to national danger or great emergency) is amended as follows.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-2"><num>(2)</num><content><p><mod>Before subsection (1) insert—<quotedStructure startQuote="&#x201C;" endQuote="&#x201D;" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>A1</num><content><p>Where a call-out order under section 52 is in force, the Secretary of State may by order suspend the operation of any regulations under section 83, 84 or 84A.</p></content></subsection></quotedStructure></mod></p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-3"><num>(3)</num><content><p>In subsection (1), omit “a call-out order under section 52 or”.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-4"><num>(4)</num><intro><p>In subsection (2)—</p></intro><level class="para1" eId="schedule-7-paragraph-6-4-a"><num>(a)</num><content><p><mod>for “subsection (1)” substitute <quotedText>“ this section ”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-6-4-b"><num>(b)</num><content><p><mod>in paragraph (a), after “recalled” insert <quotedText>“ or who are already undertaking training or performing other voluntary duties ”</quotedText>.</mod></p></content></level></subparagraph><subparagraph eId="schedule-7-paragraph-6-5"><num>(5)</num><content><p><mod>In subsections (3), (4) and (5), for “subsection (1)” substitute <quotedText>“ this section ”</quotedText>.</mod></p></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><content><p><mod>In section 87 (offences in connection with claims for payments), in subsections (1) and (2), for “or 84” substitute <quotedText>“ , 84 or 84A ”</quotedText>.</mod></p></content></paragraph><paragraph eId="schedule-7-paragraph-8" class="schProv1"><num>8</num><intro><p>In section 89(2) (jurisdiction and powers of reserve forces appeal tribunal)—</p></intro><level class="para1" eId="schedule-7-paragraph-8-a"><num>(a)</num><content><p><mod>for “and 84(3)” substitute <quotedText>“ , 84(3) and 84A(6) ”</quotedText>, and</mod></p></content></level><level class="para1" eId="schedule-7-paragraph-8-b"><num>(b)</num><content><p><mod>for “and 84” substitute <quotedText>“ , 84 and 84A ”</quotedText>.</mod></p></content></level></paragraph><paragraph eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><content><p><mod>In Schedule 9 (application of Act to transitional members), in paragraph 19, for “or 84” substitute <quotedText>“ , 84 or 84A ”</quotedText>.</mod></p></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-transitional-provision"><heading><i>Transitional provision</i></heading><paragraph eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><content><p>In paragraphs 11 and 12, “<term refersTo="#term-a-section-84a-offence" eId="term-a-section-84a-offence">a section 84A offence</term>” means an offence under section 87(2) of the Reserve Forces Act 1996 (as amended by this Schedule) in connection with a claim under regulations under section 84A of that Act.</p></content></paragraph><paragraph eId="schedule-7-paragraph-11" class="schProv1"><num>11</num><content><p>A section 84A offence is to be treated for the purposes of section 281(4) and (5) of the Criminal Justice Act 2003 (maximum term of imprisonment for summary offence) as an offence under a relevant enactment (as defined in section 281(7) of that Act).</p></content></paragraph><paragraph eId="schedule-7-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-7-paragraph-12-1"><num>(1)</num><content><p>This paragraph applies if section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (“<term refersTo="#term-the-2012-act" eId="term-the-2012-act">the 2012 Act</term>”) comes into force on or before the day on which this Act is passed.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-12-2"><num>(2)</num><content><p>Section 85 of the 2012 Act (removal of limit on certain fines on conviction by magistrates' courts) applies in relation to a section 84A offence on and after that day as if the offence was a relevant offence punishable immediately before the commencement day by a maximum fine of level 5 on the standard scale.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-12-3"><num>(3)</num><content><p>Regulations described in section 85(11) of the 2012 Act may amend, repeal or otherwise modify provisions of the Reserve Forces Act 1996 as amended by this Act.</p></content></subparagraph><subparagraph eId="schedule-7-paragraph-12-4"><num>(4)</num><content><p>In this paragraph “<term refersTo="#term-commencement-day" eId="term-commencement-day">commencement day</term>” and “<term refersTo="#term-relevant-offence" eId="term-relevant-offence">relevant offence</term>” have the same meaning as in section 85 of the 2012 Act.</p></content></subparagraph></paragraph></hcontainer></hcontainer></hcontainer>