| ID | 162241 |
| Title Proper | Profitability of Non-Competitive Defence Contracts |
| Other Title Information | the UK experience |
| Language | ENG |
| Author | Hartley, Keith |
| Summary / Abstract (Note) | This paper explains and assesses the UK experience with determining prices and profitability for non-competitive defence contracts. Three periods are considered, namely pre-1968, the 1968 Profit Formula Agreement and the changes introduced in 2014. Two cases of ‘excessive’ profits were major determinants of the 1968 Profit Formula Agreement; but continued dissatisfaction with the 1968 Agreement led to changes in 2014. The historical overview of UK experience provides a basis for understanding current UK policy and offers insights for other countries facing similar policy challenges. A critique is presented of UK policy on single source pricing and profitability. |
| `In' analytical Note | Defence and Peace Economics Vol. 29, No.6; Nov 2018: p.577-594 |
| Journal Source | Defence and Peace Economics Vol: 29 No 6 |
| Key Words | Pricing ; Profits ; Single Source Pricing ; Non-Competitive Contracts ; Excessive Profits ; 1968 Profit Agreement ; Review Board ; Single Source Regulations Office (SSRO) |