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The Social Value Model: What impact has it had in procurement?

Written by Social Value Portal | Jan 8, 2025 11:25:23 AM

Procurement Policy Note (PPN) 06/20 mandates all central government departments in the UK to consider Social Value when awarding contracts. As part of this, the Social Value Model was introduced as a framework to help contracting authorities implement this requirement. 

Fast forward to 2025, and it’s rare to come across anyone involved either in buying or bidding for public sector contracts who hasn’t heard of Social Value.  

But just how successful has the Social Value Model been in generating real community benefits? 

Social Value Model: A quick reminder 

The Social Value Model sets out five priority areas (or ‘Themes’) for Social Value delivery along with corresponding policy outcomes:  

  • COVID-19 recovery: Help local communities manage and recover from its impact  
  • Tackle economic inequality: Create new businesses, jobs and skills, and increase supply chain resilience and capacity 
  • Fight climate change: Effective stewardship of the environment 
  • Equal opportunity: Reduce the disability employment gap and tackle workforce inequality 
  • Wellbeing: Improve health and wellbeing and improve community cohesion 

Public sector buyers use the Model to guide bidders toward the most relevant Social Value opportunities and set clear evaluation criteria from the outset.  

💡 Detailed breakdown: Complete guide to the Social Value Model and PPN 06/20 

How has the Social Value Model impacted procurement?  

The years since PPN 06/20 have seen many organisations, both public and private, improve their understanding of the positive impact ‘buying power’ can create.  

In fact, the Association of Bid Proposal Management Professionals (APMP UK) recently reported that 76% of buyers now have knowledge of Social Value, and 84% of those bidding for new contracts see Social Value ‘frequently or always’ 

At the Social Value Conference, most agreed that the Model has helped shift focus away from purely budgetary considerations to encompass more holistic assessments of the value that will be delivered to the communities where the contract will be delivered.    

However, attendees also made clear that challenges remain, particularly in terms of: 

  • Consistent evaluation of Social Value commitments  
  • Effective measurement of outcomes 
  • Providing equal opportunities for all suppliers regardless of size 

More undoubtedly needs to be done to achieve the original purpose of PPN 06/20 – aligning procurement with wider government goals, such as levelling up and achieving net zero emissions by 2050.  

Moving Social Value forward in central government procurement 

One of our most anticipated panel discussions – ‘Central Government: How is it delivering on its Social Value commitments?’– brought together panellists from APMP UK, the Ministry of Justice, techUK, Accenture and Sodexo.  

Here are five key points the speakers made that will help to address some of the challenges currently being reported: 

  1. Involve more people from both sides (buyer and supplier) at the commissioning stage to ensure there is a broader, longer lasting and detailed understanding of the community’s needs and opportunities. 
  2. Use the Social Value Model’s guidance to help suppliers demonstrate their know-how, experience and new ideas throughout. Bringing greater flexibility to the process will help suppliers adapt to rapidly developing trends, such as AI. 
  3. Encourage and support supplier collaboration. Bringing suppliers together to support each other and deliver the project’s collective goals makes for a successful Social Value strategy that others can learn from.  
  4. Expand the reach of Social Value beyond procurement and bidding, so that it becomes an end-to-end process, from commissioning to delivery and beyond.  
  5. Develop a more comprehensive evaluation, measurement and feedback framework that regularly monitors progress throughout contract delivery and can be accessed in a consistent way by all central government departments.

 💡 Buyer Toolkit: More tips for embedding Social Value into procurement

The Social Value Model has been a useful tool to ensure effective Social Value delivery. But what comes across loud and clear – both through our conversations at the conference and through our day-to-day work with buyers and bidders – is that Social Value in central government procurement needs more consistency collaboration, and flexibility.  

Measuring success using the Social Value TOM System™  

The Social Value Model provides a tool for evaluating central government bids, but it doesn’t provide a mechanism for buyers and suppliers to measure and report their Social Value delivery. 

The Social Value TOM System™ fills this gap by allowing users to translate commitments into measurable, reportable outcomes, in terms of: 

  • Financial proxies: A Social Value pound (SV£) 
  • Units: Quantifiable inputs, such as weeks of volunteering 

The TOM System aligns closely to the Model Award Criteria and Standard Reporting Metrics of the Social Value Model, while offering expanded reporting options.  

Together, the Model and TOM System™ provide a comprehensive view of Social Value in alignment with government policy. 

 💡 Explore: How the TOM System™ elevates Social Value measurement

Extra resources on Social Value in central government procurement