PPN 10/12 (PCR 2015)
The Public Services (Social Value) Act 2012
In: Define > Sourcing strategy
Overview
This PPN provides guidance for all contracting authorities in relation to their obligations under the Section 1 (contracts of relevant authorities) of the Public Services (Social Value) Act 2012 (the “Social Value Act”).
Under the Social Value Act, contracting authorities must consider the economic, environmental and social benefits of their approaches before commencing any procurement process. The Social Value Act applies to the pre-procurement stage of contracts for services and also requires contracting authorities to consider whether they should consult on these issues.
Central government contracting authorities should consider incorporating social value into procurement processes as set out in PPN 06/20 (Taking account of social value in the award of central government contracts) and accompanying guidance.
Objective at this commercial stage
Consideration must be given to the economic, environmental and social benefits of the contracting authority’s approach to procurement before the process starts.
Key considerations at this commercial stage
Contracting authorities should:
- consider how the subject-matter of the contract might improve the economic, social and environmental well-being of the ”relevant area”
- consider whether to consult with relevant groups potentially impacted by the contract e.g. considering citizen and user perspectives when developing social value outcomes and specifications
- remain mindful that the consideration of social value should inform the procurement approach and the design of the public services required.
Legal framework
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
