COVID-19 – Requests for MOD Supplier Relief

The COVID-19 pandemic has had a major impact across all sectors of the UK economy. The Government has made available extensive support to UK firms and their employees to mitigate the worst effects. These, combined with the other consequences of the economic downturn, have put significant pressure on the public finances. Whilst the Ministry of Defence (MOD) recognises that Defence suppliers have not been immune to the impact of the COVID-19 pandemic, there is no further public money available to alleviate the pressure it has caused. This means that any impact on performance, cost or time on Defence contracts will have potential adverse consequences on delivery of the Defence Programme.

Since the onset of the COVID-19 pandemic, MOD has received requests for relief from the impact of the COVID-19 pandemic on performance, cost and time of MOD contracts. MOD is engaged in discussions with some suppliers regarding their requests for relief.

If suppliers have been impacted by the COVID-19 pandemic and they believe they may be entitled to relief in terms of performance, cost or time from MOD, they are requested to submit to the central team details of the impact of the COVID-19 pandemic in terms of performance, cost or time.

Attached to this notice here is a set of evidential criteria against which evidence must be provided this includes: agreement to act on an open book basis; a description of mitigations taken (or an explanation of why alternative sources of relief etc. were not taken); and on what basis you believe MOD should be agreeing to bear any part of the COVID-19 impact in terms of performance, cost or time. MOD accepts no liability to provide any relief in respect of performance, cost or time in respect of any such submission and it will be received and considered by MOD without any commitment on its part.

The central team will need to be provided with full details and relevant supporting evidence in respect of any relief relating to the impact of COVID-19 for the period up to 31 December 2020, ideally by Friday 22 January 2021 and no later than Friday 29 January 2021. In respect of any relief from the impact of the COVID-19 from 1 January 2021 submission should be made within 21 days of first becoming aware of the impact.

The central team will work with you to ensure that they understand any information submitted to MOD. They will then conduct subsequent discussions with you about what relief could be reasonable in the circumstances. All discussions will be without commitment.  The request for relief will then be considered through the normal approval.

Evidence Requirements