Social Value and the Procurement Act

Whilst the Act doesn’t mention social value directly, it is an intrinsic part of the reform. The Act, through MAT evaluation and driving accountability lends itself to a more innovative social value, with more flexibility.

The Act encourages pre-market engagement – which is a fundamental opportunity to understanding the art of the possible in social value, relevant to the opportunity.

The Cabinet Office encourage bidders to raise with the relevant procurement office if you get social value questions that are not relevant or proportionate. Additionally, please share these experiences with the APMP UK Social Value Group

Guidance for suppliers on Social Value in the Procurement Act

  • Develop a Social Value Strategy.
  • Focus on how you integrate social value into your day-to-day business rather than as an ‘extra add on’ to specific projects.
  • Take the time to understand local needs and engage with your buyers.
  • Measure what you are already doing and engage your own teams.
  • Take the time to understand the needs of your buyers so you can tailor your responses.
  • Think about your own supply chain – how can you behave like a public buyer.

Why is Social Value important in procurement?

For communities

  • Employment and upskilling opportunities for local people
  • Work for local businesses and social enterprise
  • Cleaner and green spaces maintained by sustainable practices.
  • Healthier, safer, and more empowered communities
  • Additional benefits only achievable through partnerships

For the buyer

  • Align your supply chain to your own values and priorities.
  • More value for communities meeting local needs.
  • Compliance and safety from legal challenge
  • Social Value data proving the benefits delivered to the community.
  • Better collaboration with suppliers.

Evaluating social value in tenders

Procurement teams will need to agree internally the social value (%) weighting as well as the sub weighting (qualitative / quantitative) applied across your tenders. There is the potential for buyers to opt to have a standard weighting (i.e., 10% applied across tenders with a 50/50 (5%) split across both elements or to decide this on a tender-by-tender basis.

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Procurement Act Resources

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