01. Definition
Costs incurred under a Qualifying Defence Contract that satisfy the statutory principles of being Appropriate, Attributable to the contract, and Reasonable in amount (AAR).
Usage in Methodology
"MOD auditors interrogate supplier cost breakdowns against AAR principles to determine allowable overheads."
Continuous Intelligence
View All BriefingsRelated Operational Briefings
Defense ProcurementJul 28, 2026
The SME Guide to Single Source Contract Regulations (SSCR) & QDCs
Navigating non-competitive MOD procurement: how SMEs can understand SSRO baseline profit rates, allowable costs, and QDC negotiations.
Read Briefing
Strategy & PTWMar 23, 2025
How to Calculate Your PWin Score (Formula)
A step-by-step guide to calculating Probability of Win (PWin) for public sector bids, featuring formulas and illustrative examples.
Read Briefing
Strategic InsightsJan 24, 2026
The Future of AI-Driven Capture Management
Discover how machine learning is reshaping the way firms identify and win high-value strategic contracts.
Read Briefing