Our Armed Forces are only as strong as the industry that stands behind them

Recent conflicts have demonstrated the inseparability between defence and industrial agility, explaining why we've seen the UK defence sector continue to reform its relationship with industry and procurement approaches. 
 
The UK legal framework for defence procurement is structured around the Procurement Act 2023 (introduced with the aim of providing a simpler, more transparent and more flexible procurement regime vs its EU-derived predecessor), the Defence Reform Act 2014 and the Single Source Contract Regulations 2014 (SSCRs), which regulate non-competitive qualifying defence contracts (QDCs) and subcontracts (QSCs) and impose pricing parameters and reporting obligations on contractors.
 
While the DIP notes that recent reforms to the SSCRs have shown the benefits of closer alignment between customers and industry, it also acknowledges that further reform is required (including a CMA-backed review) to support defence readiness, industrial resilience and economic growth. There is a clear focus on improving productivity, reducing delay and strengthening delivery performance, as well as incentivising market participation, particularly for SMEs (supported by the recent creation of a new Defence Office for Small Business Growth).
 
This is supported by the government's implementation of a Segmented Acquisition Model (tailoring procurement approaches to the type of capability being acquired), as well as simplifying and accelerating acquisition routes to improve deployment speed and value for money, with major planned investments in novel technologies and new programmes – a welcome announcement for industry.
 
This in one of the most active and strategically important periods for UK defence procurement in a generation. Navigating the existing complexity and reforms requires expertise and planning. Businesses that succeed in this market will continue to be those who engage early, who understand the framework and who are well-advised.