A guide for buyers and bidders - How to include social value in framework agreements

Since its implementation in 2013, the Social Value Act has had a transformational effect on public sector procurement by requiring any successful supplier to deliver additional social value as a part of their contract. Much of this change has been driven through public sector procurement processes based on a traditional approach to tenders and evaluation and using the National Social Value Measurement Framework (National TOMs) as a means of comparing and awarding bids. An alternative and popular means of engaging suppliers are through framework agreements. These are a commonly used tool for procurers as they have many benefits, including avoiding the need for costly procurement processes and reductions in procurement time. However, incorporating social value into framework agreements can present challenges, particularly in constructing a procedure to allow for further competitions either through direct call-offs or mini-competitions.

This guide describes methodologies that procurers can use when establishing framework agreements and for ongoing call-offs. These include top tips to avoid challenges that can be encountered when applying social value in framework agreements. The guide is also aimed at assisting bidders in constructing offers to be accepted on framework agreements and provide good social value offers.

This guide outlines the following for Buyers and Bidders:
  • The definition Social Value and Social Local Economic Value
  • How you can use the National TOMs Framework
  • How to embed social value into Framework Agreements and Dynamic Purchasing Systems
  • Useful example wording and SVA% calculation
  • How to include social value in framework agreements established by government departments
  • Top tips for submitting a good social value bid
  • Calculating your SVA offer against a nominal value

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