Understanding Social Value in Procurement: A Unique Evaluation Approach
In any tender or procurement process, the scoring criteria are carefully crafted to help clients accurately assess potential suppliers based on factors like cost, quality, and capability.
However, one aspect that stands out for its unique evaluation methodology is social value. Unlike traditional procurement metrics, social value questions are not scored in the same way, and most organisations have their own approach.
In this blog, we’ll explore why this is the case and provide guidance on how to address these crucial questions.
The Role of Social Value in Procurement
Social value refers to the broader benefits a contract can deliver to society beyond the goods or services being procured. These benefits might include sustainability, community development, job creation, or support for disadvantaged groups.
Increasingly, organisations are integrating social value into their procurement practices. This shift reflects a broader trend towards holistic and responsible decision-making that considers social and environmental impacts.
Why Are Social Value Questions Scored Differently?
One reason social value questions are scored differently is due to the inherent subjectivity involved. Unlike easily quantifiable metrics such as cost or delivery time, assessing social value often requires interpretation and context. This context varies based on the specific needs and priorities of the procuring organisation and the community it serves. What delivers social value in one context might not be relevant in another.
For instance, a city council tender for infrastructure projects might prioritise job creation and community engagement, while a healthcare organisation might focus on addressing health inequality and service accessibility.
As a result, the scoring approach for social value questions typically involves more flexible criteria that align with the tendering organisation’s objectives and values.
By scoring social value questions differently, organisations acknowledge the complexity of social impact, which cannot be captured in a simple numerical score. Social value may develop over time, making it challenging to quantify like traditional metrics.
Instead of assigning a fixed score, evaluators may use weighting systems to capture the relative significance of different social outcomes. This approach encourages suppliers to focus on delivering meaningful social impact rather than merely completing a checklist.
Frameworks and Models for Social Value
The evolving landscape of procurement regulations and best practices also influences the scoring of social value. For example, the Public Services (Social Value) Act was updated in 2018 to require commissioners to assess and report on the social value delivered by all major public sector contracts.
In response, the Cabinet Office collaborated with commercial and policy teams across the public sector to develop a Social Value Model. This model provides a more consistent approach, defining social value through priority themes and policy outcomes.
Social value is now evaluated based on qualitative responses from bidders, who must explain what they’ll deliver and how they’ll deliver it. This information is then assessed during bid evaluations.
Many councils also use a social value matrix to help determine the weighting of responses in line with their key goals and focus areas.
Another significant development is the shift from a government mandate to accept the ‘most economically advantageous tender’ to the ‘most advantageous tender’. By removing the emphasis on economic benefits, this change is expected to broaden the criteria used in assessing tenders, likely giving more weight to social value questions.
How to approach social value questions?
The unique scoring approach for social value questions in tenders reflects the complexity involved in social impact assessment. By recognising the multifaceted nature of social value, procurers can design evaluation criteria that capture the broader benefits of their contracts.
In responding to social value questions, it’s important to take time to fully understand the needs and priorities of the procuring organisation. By doing this, you can adapt and tailor your response to focus on the factors which matter most to them and demonstrate the value you can deliver to society.
If you’re bidding for work for a local council, for example, they will have published their approach to social value on their website as part of their mandate which should tell you everything you need to know. Also, make sure to check if there are any specific scoring models or frameworks in use that can help guide your response.