 "Getting to Grips with Social Value")
You may have noticed that when responding to Public Contract tenders, there is a greater emphasis on Social Value. Buyers want to know how suppliers can add value and benefits to the lives of those who will be affected by their products or services.
The UK Public Sector requires that social value be evaluated as part of the tender process for the majority of its largest contracts. According to the Public Services (Social Value) Act of 2012, the government awards up to 10% of bid points for social value when scoring bids. The Procurement Reform Act 2014 in Scotland included Community Benefit Clauses. Both regulations permit the inclusion of contractual clauses that can be used to incorporate a variety of economic, social, and environmental conditions into the delivery of public sector contracts.
Local governments track Social Value as part of a contract's overall business case cost. Since the mid-2000s, when local government funding changed, they have had to innovate, utilising various procurements to support their strategic and operational needs in their community. This has been accomplished through a variety of good community ideas, such as corporate litter pick-up days, work experience, and hiring local apprentices.
This is an excellent opportunity for organisations to collaborate, with purchasing organisations and suppliers collaborating and delivering to local communities. More and more businesses are recognising the importance of social value and using it as an opportunity to demonstrate their corporate responsibility and what they can offer Buyers, Buyers, and the communities in which they operate.
Some Brilliant Examples of Social Value
- Corporate volunteering, supporting local events, community support, common land clearance, litter picking, etc.
- Apprenticeships for local young people to gain a skill
- Work experience collaborating with schools and colleges
- Training, for example supporting struggling young parents in cooking skills.
Adding Value to Contracts
All public sector organisations have a responsibility to buy in the most cost-effective way possible, but savings do not always imply a cost reduction. Added Value is simply the additional value that a supplier can bring to a contract at no additional cost to the Buying Organization. It could mean providing more for less money, better specifications for the same price, or increasing the social value provided to the community.
Brilliant Examples of Added Value
- Higher specification items and lower or same cost.
- More items for the same cost or less.
- Better skills that increase productivity through training.
- Efficiency that saves effort, resources, or time.
- Pooled resources, sharing costs across functions etc.