Part 2Single source contracts

Compliance

I1I231Compliance notice

1

The Secretary of State may give a person a compliance notice if the Secretary of State thinks—

a

that the person has contravened this section, and

b

that there are steps that can be taken by the person to remedy the contravention.

2

A compliance notice is a notice which—

a

specifies those steps, and

b

directs the person to take them.

3

A person (“P”) contravenes this section if—

a

P fails to comply with one or more specified requirements imposed by virtue of—

i

section 23 (duty to keep accounting and other records), or

ii

section 24 or 25 (reports),

b

P provides a specified report under section 24 that is misleading in a material respect and P—

i

knows that the report is misleading, or

ii

is reckless as to whether the report is misleading,

c

P fails to comply with the duty under section 26 (duty to notify Secretary of State of occurrence etc of a relevant event),

d

in circumstances where P is required to make an assessment under section 29(1) or (3) in respect of a proposed contract, P fails to make such an assessment,

e

P makes a negative assessment under section 29(1) or (3) in respect of a proposed contract and the Secretary of State believes that that assessment is incorrect F1...

f

in circumstances where P is required to give the notice mentioned in section 29(2)(b) or (4)(b) in respect of a proposed contract, P fails to give such a notice F2, or

g

in circumstances where P is required to give the notice mentioned in section 29(2)(c) or (4)(c) in respect of a proposed contract, P fails to give such a notice.

4

In subsection (3)—

a

“specified” means specified in single source contract regulations;

b

“negative assessment” means an assessment that the proposed contract would not be a qualifying sub-contract if it (and, in a case within section 29(3), the proposed qualifying defence contract) were entered into.

5

A compliance notice must be given before the end of the period specified in single source contract regulations.

6

A compliance notice must—

a

give details of the contravention,

b

specify the period within which the steps specified in the notice must be taken, and

c

state that, if P fails to take those steps, the Secretary of State may give P a penalty notice under section 32.