What is social value in procurement? It’s a question asked often and, unfortunately, not always fully answered. In this blog, we’ll answer your question and give examples of how you can categorise social value.
In 2012, the government brought out the ‘Social Value and Public Services’ act.
It led to a shift in companies and their desire for sustainability. Suddenly, there was an aspect of the procurement process focused on the impact a company had on its community. On top of this, a model was produced that outlined specific values that the government wanted companies to strive for. Since then, they’ve updated the model, but the values remain mostly the same.
There’s 5 points of non-negotiable value in the model,
However, this doesn’t mean that you can’t add aspects or additional values that are relevant to your sector. In fact, adding values you consider important to your company can be beneficial for selecting the right supplier. The government allows this, stating that it:
“Defined its priority social value outcomes to provide focus, deliver a coherent message and drive synergies. Where an in-scope organisation has an opportunity to contribute to the delivery of specific objectives related to its own strategy and operations, additional policy outcomes may be added.”
The government states that you shouldn’t detract from the overall message for social values. Make sure that whatever you’re adding falls in line with the rest of your values.
Ultimately, the social value model helps the government ensure that suppliers and buyers are adhering to standards. It holds suppliers accountable to producing positive social change. Indeed, it was increased to a 10% weighting in the procurement criteria. Everyday, procurement is happening that affects people’s lives. It’s only right that buyers ensure that this effect is positive. It indirectly leads to smarter spending to help resolve economic and environmental issues in the community.
When you’re tackling social value in the procurement process, you need to consider five points. We’ll go through them and what they mean for you and the suppliers.
So, this focuses on the impact of the pandemic on local communities.
If the supplier can provide evidence of this, it’ll be beneficial for you in your selection process.
The government states that:
“…organisations must ensure that any benefit identified as social value in tenders or contracts…is over and above the core deliverable/s of the tender or the contract.”
This essentially means that a supplier can’t link an agreed feature of their service to social value. They need to go above and beyond their service features to help meet social values. To prove that they’re meeting social values, they could:
In 2020, the government published an article stating that suppliers need to provide evidence of them upholding social values. So, this aspect of bidding is crucial and shouldn’t be overlooked. .
So here we are, at the end of the blog.
We’re sure that by now you know the answer to the question, “What is social value in procurement.”
Now you have the knowledge you need to include the social value model into your procurement process. For those who need it, here’s a short recap on what we’ve covered.
Our team at Hudson Procure has nearly 20 years of experience, and we offer 4 services to help your business.
We provide project-based tender support and management in addition to offering any required procurement support on an ad-hoc basis. The Procure Consult service includes mentoring, coaching and general advice. Ultimately, we have the capability and experience to support any operational or strategic procurement requirement.
Procure Health Check is for companies that have some knowledge of procurement but need that bit of assistance. The service includes on-site interviews with stakeholders to understand current procurement processes, skills and understanding. Also included is a review of procurement systems, infrastructure and opportunities for development.
This service provides a high-level vendor-led analysis of an organisation’s spending activity. This helps us to understand current purchasing behaviour and areas where procurement activity can be focused to deliver greater value. Procure Analyse helps generate a structured, forward plan for procurement activity and improving purchasing operations.
Procure Outsourcing focuses on providing procurement solutions on an outsourced basis. This would mean that the procurement services can be tailored to your needs. This could mean:
For more information or for a free consultation, please get in touch.
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