Regulated pricing makes margins predictable but limits upside, and the government's audit and repricing rights can claw back cash after the event.
Across the 3 regimes
United Kingdom
Qualifying single source contracts are priced at allowable costs plus a contract profit rate under the Defence Reform Act 2014 and the Single Source Contract Regulations 2014, starting from the SSRO's baseline profit rate.
United States
Certified cost or pricing data (Truthful Cost or Pricing Data rules) above US$2.5m, with Cost Accounting Standards on larger contracts.
EU and NATO
National cost and profit rules. NSPA and OCCAR price under their own regulations.
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Related
General information on public law and standard terms as at 28 Oct 2026, not legal advice on any contract or transaction. Quoted wording is checked against the official text linked to it.