Social Value
The economic, social, and environmental benefits a public contract generates beyond the core deliverable; typically scored 10-20 percent of bid total.
Definition
Social value is the broader economic, social, and environmental benefits that a contract can generate for the local community beyond the core deliverable. The Social Value Act 2012 requires public sector buyers to consider social value in procurement decisions. Many buyers now include social value as a scored element worth 10 to 20 percent of the total evaluation, assessed using the PPN 002 TOMs framework for central government and equivalent frameworks for local government, NHS, and the wider public sector.
How it works in practice
Social value commitments typically cover five themes (Jobs, Growth, Social, Environmental, Wellbeing) with specific measures under each: jobs for the unemployed, apprenticeships, training hours delivered, local SME spend, carbon reduction, community engagement, employee wellbeing investment, mental health support. The most-used assessment framework in the UK is the National TOMs framework, maintained by the Social Value Portal and adopted by hundreds of local authorities, central government departments, and NHS trusts. Bidders commit to specific quantified outcomes (50 hours of apprenticeships in year 1, £200,000 of subcontract spend with local SMEs over the contract term) and report against them as part of the contract management cadence. Strong social value bids are evidenced, specific, and proportional to the contract value: a £50,000 contract committing to 500 hours of apprenticeships is implausible, while a £5 million contract committing to 50 hours is under-ambitious. The commitments become contract obligations under PA 2023 and underperformance contributes to the supplier conduct record. KimonBids includes a social value generator that helps suppliers translate the buyer's TOMs requirements into specific, evidenced, contract-ready commitments scaled to the contract value.
Common questions
What is the typical social value weighting in a public sector bid?
10 percent is the minimum under PPN 002 for central government service contracts. 15 to 20 percent is increasingly common for strategic contracts, particularly in local government and NHS. The specific weighting is stated in the Invitation to Tender evaluation methodology.
How are social value commitments measured during delivery?
The bid commitments become contract KPIs. Suppliers report quarterly against each committed measure, evidencing actual outcomes (jobs created, training hours delivered, local spend, carbon savings). Underperformance triggers performance review and (under PA 2023) contributes to the public supplier conduct record.
Can I copy my social value commitments across bids?
No. Commitments must be proportional to the contract value and tied to the specific buyer's priorities (which TOMs measures they prioritise, geographic focus, sector context). Templated commitments score lower than tailored ones, and over-committing on a low-value contract creates delivery exposure.
What is the difference between social value and CSR?
Corporate Social Responsibility (CSR) is a voluntary organisational programme covering social and environmental impact. Social value is contract-specific commitments evidenced and scored within a procurement, tied to KPIs and contract management. CSR is who you are as an organisation; social value is what you will deliver under this specific contract.