Last week, HM Government announced a new model of social value for use in the awarding of central government contracts. We’ve condensed the policy into this handy factsheet so you can prepare your organisation to take advantage of the opportunities this change provides.
What is it?
On the 24th September 2020, the Cabinet Office published a new Procurement Policy Note issuing new guidance on how social value is considered in central government procurement and commissioning.
Called “Taking Account of Social Value in the Award of Central Government Contracts”, the note states that, “social value should be explicitly evaluated in all central government procurement”, and outlines some new recommendations and requirements.
Why?
The government spends around £49bn of tax payers money each year on contracts for vital public services. The social value policy and its associated legal framework (see The Public Services (Social Value) Act 2012) ensure that public money is spent in ways which benefit society, not just private enterprise.
What has changed?
There are two major changes that this policy note introduces.
The first is that social value will now be “explicitly evaluated in all central government procurement”, whereas previously social value was only “considered”.
Secondly, whereas social value had previously been defined in terms of price, the new policy note takes into account a broader range of social goods, such as the local job creation, apprenticeships, etc.
This broadening of the definition of social value means that a wider variety of organisations, regardless of their size, now have a more level playing field to compete for government contracts.
What does the new model contain?
The new model sets out five high-level themes, and eight policy outcomes that organisations bidding for central government contracts will be required to demonstrate.
The themes and their associated outcomes are: