Social Value Model (PPN 06/20): Who Qualifies and What You Get

This model requires central government departments to include social value considerations when evaluating bids for public contracts. It ensures that the social benefits of a contract are a formal part of the decision-making process.

👤Who it's for

This scheme is specifically for central government departments. It applies to these departments when they are managing the procurement process and deciding how to award contracts to suppliers.

🎁What you get

When evaluating contract bids, departments must use a mandatory weighting for social value. This means that a supplier's potential to provide positive outcomes for society is not just an optional extra; it is a required metric that must be factored into the formal evaluation of the bid. By including this social value weighting, departments ensure that the social impact of a contract is given significant consideration alongside other commercial factors.

💰What it costs you

The primary cost of implementing this model is the additional time and administrative effort required to evaluate social value bids. Procurement officers must spend more time reviewing how a supplier intends to meet social goals and then scoring those specific elements to ensure they meet the required standards.

⚠️The catch to know

The most significant challenge with this model is the difficulty in quantifying social value outcomes. Because social benefits can be qualitative, it can be hard to measure them with the same precision used for financial or technical metrics, which can make comparing different supplier bids more complex.

📝How to apply

1. Determine the specific social value requirements that apply to your particular procurement process.
2. Incorporate these social value requirements into the formal tender documentation provided to bidders.
3. Apply the mandatory social value weighting to the scoring of each bid during the evaluation phase.