PPN 002 (Social Value)
The Cabinet Office PPN requiring central government to apply a minimum 10 percent social value weighting in service contract evaluations.
Definition
PPN 002 (formerly PPN 06/20) is the Cabinet Office guidance that requires central government buyers to include social value as a minimum 10 percent weighting in service contract evaluations. PPN 002 uses the TOMs (Themes, Outcomes, and Measures) framework to assess social value commitments. Understanding PPN 002 is essential for winning central government service contracts and is increasingly applied voluntarily by local authorities and NHS trusts as a baseline expectation.
How it works in practice
PPN 002 applies to central government departments, executive agencies, and non-departmental public bodies. It mandates a minimum 10 percent weighting for social value within the evaluation criteria of in-scope service contracts; many authorities apply 15 to 20 percent for strategic contracts. Bidders evidence their social value through the TOMs framework: five themes (Jobs, Growth, Social, Environmental, Wellbeing), each with defined outcomes and specific measures. The buyer publishes which TOMs measures they want bidders to address and the target values; bidders commit to specific quantified outcomes against each measure. Quality of evidence is the main differentiator: a bid that commits to "50 hours of training for unemployed local residents in year 1, delivered in partnership with [named local college], measured by attendance certificates" scores higher than "we will deliver training in the local community". The commitments become contract obligations and are tracked as KPIs through delivery. Failure to deliver social value commitments is a contract performance issue under the Procurement Act 2023 supplier conduct regime. KimonBids includes a social value generator that helps suppliers translate the buyer's TOMs requirements into specific, evidenced, contract-ready commitments.
Common questions
What is the minimum social value weighting under PPN 002?
10 percent of the total evaluation score for in-scope service contracts. Many authorities apply 15 percent or 20 percent for strategic contracts; some apply lower weightings (5 percent) for contracts where social value opportunities are genuinely limited. The actual weighting for each procurement is stated in the ITT.
Does PPN 002 apply to local government?
Strictly the PPN applies to central government. In practice many local authorities have adopted equivalent social value frameworks, often using TOMs as the assessment tool. The Social Value Act 2012 separately requires all public bodies to consider social value in procurement; PPN 002 is the central government implementation of that wider requirement.
How are social value commitments measured during delivery?
The bid commitments become contract KPIs. Suppliers report against them at the contract cadence (usually quarterly), evidencing actual outcomes (jobs created, training hours delivered, local spend, carbon savings). Underperformance triggers a performance review and can contribute to the supplier conduct record under PA 2023.