Defence Reform Act 2014
At a glance
Enforced by
What's here
13 compliance obligations, 1 practical guide
Penalty landscape
1 of 13 obligations carry an unlimited fine. 1 carries different penalties and 11 have no criminal penalty — flagged in the list below.
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Any Person 4
- Contractor 3
Plus 6 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Supporting — topic alignment
1 guidesOther Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Any Person also bound by 2338 other Acts (top 5 shown)
- Human Medicines Regulations 2012 2012 169 duties
- Merchant Shipping Act 1995 1995 144 duties
- Insolvency (England and Wales) Rules 2016 2016 101 duties
- Road Traffic Act 1988 1988 95 duties
- Air Navigation Order 2016 2016 95 duties
Contractors also bound by 178 other Acts (top 5 shown)
- The National Health Service (Personal Medical Services Agreements) Regulations 2015 2015 137 duties
- The National Health Service (General Medical Services Contracts) Regulations 2015 2015 134 duties
- Construction (Design and Management) Regulations 2015 2015 114 duties
- The National Health Service (General Medical Services Contracts) (Wales) Regulations 2023 2023 93 duties
- The Health and Personal Social Services (General Medical Services Contracts) Regulations (Northern Ireland) 2004 2004 87 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Part 1 — Defence procurement
Browse 12 other sections in this Part — procedural / definitional / commencement
Arrangements for providing defence procurement services
Financial assistance
Financial claims against contractors or former contractors
Exemptions relating to premises used by a contractor
Jurisdiction of Ministry of Defence Police
Status of contractor
Restrictions on disclosure or use of information
Intellectual property rights
Transfer of employees: application of TUPE regulations
Transfer schemes
Financial provisions
Interpretation of this Part
Part 2 — Single source contracts
Single Source Regulations Office (or “SSRO”)
Other duties (1) — Crown / regulator
- SSRO must ensure value for money and fair pricing in defence contracts Statutory regulator
Contract profit rate: supplementary
- Adhere to SSRO guidance when calculating contract profit rates Contractor
Rates etc relevant to determining contract profit rate
Other duties (1) — Crown / regulator
- Secretary of State must determine and publish profit rates for defence contracts Crown / Minister / Government department
Allowable costs
- Ensure costs claimed in defence contracts are appropriate and reasonable Contractor
Records
- Keep and maintain accurate records for single-source defence contracts Any Person
Duty to report relevant events, circumstances and information
- Report material changes affecting qualifying defence contracts Contractor
Recording, review and analysis functions
Other duties (1) — Crown / regulator
- SSRO must maintain records and review compliance of defence contractors Statutory regulator
Review of Part and regulations under it
Other duties (1) — Crown / regulator
- Secretary of State must review single source contract regulations Crown / Minister / Government department
Browse 24 other sections in this Part — procedural / definitional / commencement
Regulations relating to qualifying defence contracts
Pricing of contracts
Pricing of contracts: supplementary
Contract profit rate
Final price adjustment
Recovery of unpaid amounts
Reports on qualifying defence contracts
Reports on overheads and forward planning etc
Records and reports: restrictions
Qualifying sub-contracts
Determining whether a contract is a qualifying sub-contract
Application of Part to qualifying sub-contracts
Compliance notice
Penalty notice
Amount of penalty
Enforcement
Opinions and determinations
Guidance
Provision of other services to Secretary of State
Disclosure of information
Power to repeal Part
Single source contract regulations: time limits and determinations
Single source contract regulations: general
Interpretation etc
Part 3 — Reserve forces
Browse 5 other sections in this Part — procedural / definitional / commencement
Part 4 — Final provisions
Browse 3 other sections in this Part — procedural / definitional / commencement
Schedules
Restrictions on disclosing information
2 years imprisonment- Disclose protected defence procurement information without consent Any Person
(1) Where a transfer scheme transfers foreign property or a...
- Ensure foreign property transfers are effective under applicable foreign law Any Person
(1) The SSRO must prepare a report on its activities...
Other duties (1) — Crown / regulator
- SSRO must prepare annual report on its activities Statutory regulator
(1) This paragraph applies where a person is suspended under...
Other duties (1) — Crown / regulator
- Secretary of State must notify suspension and review upon request Crown / Minister / Government department
(1) A person commits an offence if the person discloses...
Unlimited fine- Disclose protected defence information Any Person
Browse 67 other Schedules — structural / supplementary
Exemptions relating to premises used by a contractor
Transfer schemes under section 10
Call out of members of reserve forces: transitional classes
In this Schedule— “relevant premises” means any premises used by...
Part 2 of the Landlord and Tenant Act 1954 (security...
(1) For the purposes of sections 1 and 2 of...
(1) The Secretary of State may by order exempt a...
The Radioactive Substances Act 1993 has effect, in relation to...
The Environmental Permitting (England and Wales) Regulations 2016 (S.I. 2016/1154)...
(1) The Secretary of State may by order provide for...
(1) Orders under this Schedule are to be made by...
Restrictions on disclosure or use of information
(1) This Schedule applies where the disclosure or use of...
(1) The obligation does not prevent or penalise the disclosure...
(1) The obligation does not prevent or penalise the disclosure...
(1) This paragraph applies where— (a) information is disclosed to...
(1) This paragraph applies where— (a) information is disclosed in...
In this Schedule— “ancillary services” means services certified by the...
(1) On the transfer date, the designated property, rights and...
(1) A transfer scheme may make provision—
A transfer scheme may contain provision for the payment of...
A transfer scheme may— (a) include incidental, supplementary and consequential...
(1) The Secretary of State may modify a transfer scheme....
In this Schedule— “designated”, in relation to a transfer scheme,...
Single Source Regulations Office
(1) The SSRO is to consist of the following members—...
(1) The SSRO may determine its own procedure; but this...
(1) The SSRO— (a) may appoint committees, and
(1) The SSRO must— (a) keep proper accounts and proper...
(1) The SSRO may do anything which is calculated to...
(1) The application of the SSRO's seal must be authenticated...
(1) The Secretary of State may make to the SSRO...
(1) The SSRO is not to be regarded—
In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments...
In Part 2 of Schedule 1 to the House of...
(1) The executive members of the SSRO are to be...
In Part 2 of Schedule 1 to the Northern Ireland...
In Part 6 of Schedule 1 to the Freedom of...
(1) A person holds and vacates office as a non-executive...
(1) Where a person is suspended from office as the...
The SSRO may, with the approval of the Secretary of...
(1) The SSRO may appoint employees. (2) The SSRO may...
(1) The SSRO may make arrangements— (a) for persons to...
(1) In Schedule 1 to the Superannuation Act 1972 (kinds...
(1) This Schedule applies to information if—
Paragraph 2(1) does not apply to a disclosure made with...
Paragraph 2(1) does not apply to information that has been...
(1) Paragraph 2(1) does not apply where information is disclosed—...
(1) The Secretary of State may by order—
The Reserve Forces Act 1996 is amended as follows.
(1) Section 129 (application of Act to persons currently serving...
In the heading of that section, for “persons currently serving...
(1) Schedule 9 (application of Act to transitional members) is...
In the heading of Schedule 9, for “transitional members” substitute...
Payments to employers etc of members of reserve forces: supplementary
The Reserve Forces Act 1996 is amended as follows.
In paragraphs 11 and 12, “a section 84A offence” means...
A section 84A offence is to be treated for the...
(1) This paragraph applies if section 85(1) of the Legal...
In the heading before section 83, for “call out or...
In the headings of sections 83 and 84, after “in...
(1) Section 85 (regulations under section 83 or 84: supplementary)...
Accordingly, in the heading of section 85, for “or 84”...
(1) Section 86 (power to suspend payments due to national...
In section 87 (offences in connection with claims for payments),...
In section 89(2) (jurisdiction and powers of reserve forces appeal...
In Schedule 9 (application of Act to transitional members), in...
Official guidance
Authoritative sources published by regulators or government explaining this legislation.
- MOD supplier enquiries (opens in a new tab) Detailed Guidance
- DASA Open Call for Innovation (opens in a new tab) Publication
- MOD Acquisition Pipeline (opens in a new tab) Publication
- Find a Tender (opens in a new tab) from Cabinet Office Detailed Guidance
- Contracts Finder (opens in a new tab) from Cabinet Office Detailed Guidance
- Defence Sourcing Portal (DSP) (opens in a new tab) Detailed Guidance
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
Single Source Regulations Office
Statutory regulator for single-source (non-competitive) defence procurement contracts under Part 2 of the Defence Reform Act 2014. Sets baseline profit rates and …
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Browse legislation
Find other UK business legislation with related guidance.
Regulators
Learn more about the bodies that enforce this legislation.