Government publishes new Social Value Model

Government has published their long-awaited model for accounting for social value in central government procurement

Following the launch of Procurement Policy Note (PPN) 06/20 in September, which sets out information for public bodies on how to take account of social value in awarding central government contracts, the Government has this week published its ‘Social Value Model’. The new model should be used in all central government procurement to maximise the additional societal benefits that can be achieved in the delivery of its contracts, using policy outcomes aligned with this government’s priorities.

This model has been launched after a protracted consultation period which followed an announcement in 2018 in the Civil Society Strategy to strengthen the use of the 2012 Public Services (Social Value) Act in central government procurement. The Social Value Model is the means by which procurement teams can shift to “accounting for” rather than just “considering” social value during the tendering process. To support those implementing the new Model within procurement decisions, a ‘Guide to using the Social Value Model’ has also been published.

For the construction and property industry this new model will have a material impact on how the built environment sector bids for central government contracts.

John Alker, Director of Policy and Places at UKGBC said:

“Government purchasing power has huge potential to unlock benefits above and beyond the work being procured and we have welcomed the Government’s work to strengthen social value in its procurement processes. The Social Value Model and policy note offers an outcomes-based approach and a framework for measuring social value, both of which we feel are critical aspects of a best practice approach to delivering social value.

“While we welcome the introduction of a minimum 10% weighting of the total score for social value, and are pleased to see an evaluation framework which has more focus on environmental and health factors than we saw last June, we hope the percentage weighting and the scope of outcomes will be more ambitious over time. Further guidance is also needed to ensure policy outcomes are bespoke to the needs of the relevant community, and ensuring they are given the opportunity to feed into decision-making.”

UKGBC’s Social Value programme has produced a number of resources to help the built environment sector understand what social value means in practice. Check out Social Value in New Development, Social Value: Measurement and Social Value: Community Engagement Hacked for more information.

UKGBC has also recently consulted on a definition for social value in the built environment, which will be published early next year.

A copy of the Procurement Policy Note on the Social Value Model and associated guidance can be found here.

UKGBC’s response to the 2019 Consultation on Social Value in Procurement here.

For more information on UKGBC’s social value work, please contact sophia.cox@ukgbc.org

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