Last week, I had the pleasure of attending Procurement Act Live, where Social Value Portal was the official Social Value Partner.
With the Act having just launched, the energy and enthusiasm for discussion throughout the day was brilliant, and such a privilege to have been a part of. There was a real mix of public and private sector professionals coming together to discuss how the Procurement Act 2023 is reshaping procurement in the UK.
Many contracting authorities and suppliers are working through what this new procurement landscape means in practice. Some are well prepared, while others are still figuring out how to navigate the new requirements – especially regarding Social Value.
Here are some of my big takeaways from the event.
Contracting authorities have a lot on their plates
Unsurprisingly, there’s still a lot of uncertainty around how the Act will unfold in practice, and it’s left many feeling quite overwhelmed as they grapple how it will be implemented in practice. Some are questioning whether it will be all that different; others are preparing like they're preparing for the apocalypse.
For one thing, there is now a dual regulatory environment for some, which is adding to the pressure. For instance, in the case of procurement frameworks, some could continue to be used for another four years. Many procurement professionals are working out the best way to manage both sets of rules simultaneously.
That said, there was a lot of enthusiasm for the strengthening of Social Value in procurement decisions. The shift from MEAT (Most Economically Advantageous Tender) to MAT (Most Advantageous Tender) was a hot topic, with many pleased to see Social Value taking centre stage in the awarding of contracts.
One challenge has been getting senior leadership buy-in, with contract management being a bigger priority in many organisations. Leadership teams should understand that the Procurement Act’ 2023’s new reporting requirements and transparency measures have big implications across the entire contract lifecycle – not just at the tender stage.
My conversations therefore centred around how the Act, and particularly the NPPS, should strengthen the opportunity to use procurement as a strategic lever for achieving council objectives and priorities for change.
Authorities and suppliers are acting on Social Value requirements
One thing was clear from Procurement Act Live: organisations on both sides of the procurement process understand the importance of Social Value and are starting to act.
While some authorities have held back from implementing changes while they waited for the final NPPS to be released, they are now accelerating their efforts. Given the shift from MEAT to MAT, authorities now need a strong justification NOT to factor Social Value into contract design.
A few conversations stood out to me:
- A procurement professional at a university told me they hadn’t prioritised Social Value in contracts previously, but that attending Procurement Act Live brought home to them just how critical it is.
- A director of bids at an IT Services contractor told me that his priority was now to make Social Value an organisation-wide strategy, with commitments that could definitely be delivered and were relevant to the business’s core activities.
- A bid writer for social care contractors was concerned that some providers in the sector were at risk of missing out on opportunities because they were not taking a strategic approach to demonstrating Social Value in bids.
My key takeaway was that both public and private sector organisations are placing far more emphasis on Social Value than before. It’s not an ‘add-on’ – it’s now a fundamental part of complying with procurement legislation.
A turning point for SMEs and VCSEs?
Some of the most encouraging discussions at Procurement Act Live were around the role of Small to Medium Enterprises (SMEs) and Voluntary, Community, and Social Enterprises (VCSEs) in public procurement.
There’s a growing recognition that smaller suppliers bring unique strengths to the table when delivering public contracts, due to their deep local knowledge, community engagement, and agility.
The Procurement Act 2023 – and, in particular, PPN 001 – introduces new measures to remove barriers that have historically made it harder for SMEs and VCSEs to win public contracts, and mandate in-scope authorities to set spend targets.
While challenges remain, there was a real sense of optimism at the event. It feels like we’re finally turning a corner when it comes to making procurement more accessible and inclusive for smaller suppliers.
Other trends shaping public procurement
Several other key trends recurred in discussions at Procurement Act Live:
- The NPPS and its implications: The National Procurement Policy Statement has set out the Government’s goals and expectations clearly. It’s essential for both buyers and suppliers to read the Statement thoroughly and align their activities accordingly.
- The role of AI in procurement: AI in bid writing was a hot topic, with public sector buyers discussing how to ensure suppliers fully understand their commitments if AI is being used extensively in proposal writing.
- Managing risks and legal challenges: With new transparency and reporting requirements, procurement teams are thinking carefully about risk mitigation and how to avoid legal challenges when awarding contracts.
My advice to authorities and suppliers for complying with Social Value requirements
There’s a lot to think about and plenty of work to do right now. I genuinely feel for the pressure that teams are under.
But if I had one piece of advice for public sector buyers and suppliers, it would be this:
- For contracting authorities: Embed Social Value from the very beginning. Make it a core part of contract design, not an afterthought. This will make sure that Social Value remains a key focus throughout contract delivery and help you secure true value for money.
- For suppliers: Think strategically about Social Value. Don’t just add generic commitments to a bid – make sure they’re realistic, measurable, and aligned with your organisation’s strengths. The ability to deliver on Social Value promises will be more important than ever.
More procurement resources to explore
Social Value is now a non-negotiable part of public procurement and must be a strategic focus for both authorities and their supply chain partners.
Want to understand the Social Value requirements of the Procurement Act 2023 in-depth? Read our complete breakdown.
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