Procurement in a nutshell – Social Value in public services
27th November, 2015
In this Procurement in a Nutshell, we will be looking at the Public Services (Social Value) Act 2012 (The Act) and its effects on public procurement. It came into force on 31 January 2013.
The Act is available here.
What’s new?
This year, the Cabinet Office published a review of the first two years of the Public Services (Social Value) Act 2012.
Under the Act, Contracting Authorities must consider how what is being procured might improve the economic social and environmental well-being of its area and the Act requires public authorities to have regard to securing that improvement in conducting the process of procurement.
The review concluded there was a lack of awareness and an inconsistent approach to Social Value, with difficulties with the measurement of Social Value.
What is Social Value?
Social Value seeks to maximise the additional benefits that can be created by providing benefits above and beyond the core services.
It can apply to:
- Local Authorities
- Housing associations
- NHS Trusts
- CCGs
- Central Government
on any services above £625,000.
Social Value elements can be included in award criteria because Regulation 67(3) of the Public Contract Regulations 2015 states that award criteria can include social and environmental matters although they must be linked to the subject matter of the contract.
Cabinet Office guidance suggests:
Using pre-market engagement to understand what is possible
Write Social Value outcomes into the specification
Be relevant and proportionate
Clearly articulate to bidders how you want them to present their Social Value offers
Why is it important?
By considering Social Value, Contracting Authorities can add value at no extra cost – 20% average cost savings are attributed to better commissioning according to the Cabinet Office.
How can I find out more?
If you have any queries on the issues raised or on any aspect of procurement, please contact us via our procurement hotline on 0191 204 4464.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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