This Note provides background information on the Defence Reform Bill, which is due to have its second reading in the House of Lords on 10 December 2013. It summarises the key provisions, background and proceedings in the House of Commons for each of the Bill’s three main parts. Part 1 would enable the Secretary of State to make arrangements for a company to provide defence procurement services under contract, should the Government decide to establish a government-owned contractor-operated entity. Part 2 would create a regulatory framework for single source defence contracts that are not subject to the usual legal obligation to be advertised and tendered competitively. Part 3 would implement proposals set out in the White Paper, Reserves in the Future Force 2020: Valued and Valuable.