GPSJ Autumn 2024 ONLINE - Flipbook - Page 17
SOCIAL VALUE
GPSJ
Why Social Value Should Be an Important
Part of the Public Sector Procurement
Process
By Siobhan Goss, Head of Corporate Social Responsibility, Matrix Workforce Management Solutions
As the Head of Corporate
Social Responsibility at Matrix,
I’ve had the opportunity
to witness the increasing
importance of social value
within the procurement process.
Social value is no longer an
optional consideration; it is
now a significant factor in
public sector procurement.
The evolution of social value
from what it was a decade
ago to where it stands today
reflects its growing significance
in delivering benefits beyond
financial outcomes. For
suppliers tendering for UK
public sector contracts,
understanding and embracing
social value is key.
One thing I always emphasise when
speaking to colleagues across
various functions is the importance of
understanding the relevance of social
value, even in areas where it might
not traditionally be considered. Public
sector organisations are increasingly
posing questions to suppliers about
how they will deliver social value.
When those bids come in, social
value is evaluated with growing
emphasis, and I believe that getting
feedback and insights from across
your organisation can help you
respond effectively.
With the future changes planned
by the new Procurement Act
scheduled for early next year, we
are likely to see a greater focus on
social value in procurement. The
flexibility and innovation that the new
legislation will provide will allow us to
explore new ways of delivering and
evaluating social value outcomes. I’m
particularly interested to see how this
will develop once the act comes into
full force. For suppliers, this presents
an opportunity to be creative and
demonstrate how their offerings can
go beyond just goods and services,
creating a broader impact on society.
One of the challenges that the
public sector might face is ensuring
that they strike the right balance
between what they ask of suppliers
and what is realistically achievable.
There is an emphasis on pushing
suppliers to deliver genuine,
measurable social value outcomes.
But at the same time, we need to
ensure that these outcomes are
tangible and tailored to the needs
of the communities we serve. It’s
not just about ticking boxes - it’s
about delivering value where it is
needed most.
I think it’s important for suppliers
to understand that, while the
public sector may outline certain
expectations, the real beneficiaries
of social value initiatives are the
communities themselves. In
my view, engaging directly with
these communities is crucial.
It’s all too easy for procurement
professionals to assume they
know what’s best, but often,
the best insights come from the
people on the ground - local
schools, charities, and community
organisations that are already
doing fantastic work. Engaging
with these groups will not only
make your social value efforts
more impactful but also more
relevant.
The open procurement
approach that we will have under
the new Act will allow for more
innovation and flexibility. This is
where suppliers can differentiate
themselves. For instance, we are
already seeing higher weightings
placed on social value in
procurement evaluations. Previously,
the weightings for social value might
have been a mere 2%, but with the
new framework, we are hoping to
see weightings of 5%, 10%, and
even 15%. This higher emphasis
reflects a shift in mindset, where
social value is seen as an integral
part of the procurement decision, not
an afterthought.
Of course, there is no golden
rule when it comes to social value
weightings. The key is to find the
right balance that works for both the
procuring body and the suppliers.
While 2% might not have made
much difference, weightings in
the 10-15% range start to feel
more meaningful. However, these
weightings must be aligned with
clear goals and not applied arbitrarily.
The social value element should be
relevant to the contract and specific
to the needs of the community. This
Siobhan Goss
tailored approach ensures that the
social value offered is appropriate
to the size of the contract and that
it aligns with the goals of the public
sector body.
My advice to suppliers is simple:
don’t be insular. Social value isn’t
something you should develop in
isolation. Engaging with the wider
community and understanding their
needs is key to delivering meaningful
outcomes. When planning your bid,
think about how you can involve
local stakeholders, such as schools
and charities. Have you consulted
them about what they need? These
conversations don’t need to be
time-consuming, but they can
make a huge difference. Even small
initiatives, like offering career talks at
local schools, can have a significant
impact. It’s about proportionality and
finding the right balance between
big-ticket items like apprenticeships
and smaller but equally impactful
initiatives.
When it comes to social value,
collaboration is crucial. Many
organisations in the public sector
have their own social value
champions—people who are
focused on delivering regional or
community benefits. For those that
don’t, there is a wealth of knowledge
and best practices to be shared.
One of the strengths of the public
sector is its willingness to collaborate
and share ideas, and I encourage
suppliers to tap into this. Speak with
your peers, share ideas, and learn
from one another. The more open we
are to learning from others, the better
we can deliver social value.
And finally, social value should not
be seen as an additional burden or
a box-ticking exercise. It represents
an opportunity for suppliers to show
how they can make a real difference
to the communities they serve. By
engaging with local stakeholders,
tailoring your social value offerings,
and collaborating with others in the
sector, you can ensure that your
bids not only meet but exceed
expectations. Social value is here
to stay, and I urge all suppliers to
embrace it fully.
GOVERNMENT AND PUBLIC SECTOR JOURNAL AUTUMN 2024
17
