PPN 06/20 (PCR 2015)

Taking account of social value in the award of central government contracts

In: Manage > Manage and monitor

Overview

This PPN applies to procurements covered by the Public Contracts Regulations 2015 (PCR 2015), and applies to all central government departments, their executive agencies and non-departmental public bodies (collectively referred to as 'in-scope organisations').

This PPN launches a model to deliver social value through government’s commercial activities, noting that in-scope organisations should evaluate social value in all central government procurement where the requirements are related and proportionate to the subject-matter of the contract. This aligns with their obligations under Section 1 of the Public Service (Social Value) Act 2012.

The social value model (the ‘model’) establishes common commercial objectives for social value; which focus on a set of strategic themes and related policy outcomes that reflect agreed cross-government priorities. From this menu, commercial teams should select objectives that are relevant and proportionate to their procurement.

Application of the model will be mandatory in central government but commercial teams, within in-scope organisations, retain flexibility in deciding which of the outcomes should be applied to their particular procurement to ensure relevance and proportionality.

Detailed guidance on how to use the model, including a menu of social value options, is available in the PPN and accompanying guide to which in-scope organisations should refer.

Objective at this commercial stage

Social value deliverables should be managed and monitored during the lifecycle of the contract by developing appropriate key performance indicators (KPIs).

Key considerations at this commercial stage

In-scope organisations should:

  • ensure that the contract manager monitors the social value deliverables in the contract against the commitments in the successful tender
  • using the Model Award Criteria and Reporting Metrics set out in the procurement documentation and suppliers proposals, establish social value KPIs.

The PPN should be read alongside the relevant parts of the legal framework, including but not limited to, the following provisions of the Public Contracts Regulations 2015 (which may be particularly relevant to the consideration of this PPN):

  • Regulation 18: Principles of procurement
  • Regulation 56: General principles of awarding contracts
  • Regulation 67: Contract award criteria
  • Regulation 70: Conditions for performance of contracts

Additional support and guidance

Make sure you:

  • read the PPN and any supporting implementation guidance
  • seek legal and commercial advice in the context of specific procurements