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The role of social value in government contracts
Social value is transforming the landscape of government contracts, becoming a pivotal consideration in the bidding process.
Government contracts increasingly emphasise social value, making it a key factor in the bidding process. Laurence Higgens, a social value expert, discussed this trend in a recent briefing session with the SP team. This blog explores the role of social value in government contracts and provides tips for bid and proposal managers.
Why social value matters
Government bodies are under pressure to ensure that their contracts deliver not only economic benefits but also positive social and environmental outcomes. Laurence explained that this shift is driven by policies aimed at maximising the public good.
Key learning from the briefing
Policy drivers:
Laurence highlighted several policy drivers behind the emphasis on social value, including the Public Services (Social Value) Act, PPN 002 and the New Social Value Model (Mandatory from 01 October 2025) and various procurement regulations.
The Social Value Act is driven by policies aimed at maximising public good and ensuring that public contracts deliver not only economic benefits but also positive social and environmental outcomes.
Bidders are expected to demonstrate how their proposals will deliver social value, including outlining specific initiatives and providing evidence of past performance. The guidance says that effectively incorporating social value into bids can provide a competitive advantage, aligning with the priorities of contracting authorities.
Bidders should also review "PPN 002 Guide to Using the Social Value Model". This provides detailed guidance on how to
use the Social Value Model in public sector procurement. It covers the preparation and planning stages, contract management, and how to account for social value throughout the procurement lifecycle.
The guide also explains the Public Services (Social Value) Act 2012 and its requirements. Bidders should study and understand these.
Expectations from bidders:
Government agencies expect bidders to demonstrate how their proposals will deliver social value. This includes outlining specific initiatives and providing evidence of past performance.
Competitive advantage:
Laurence noted that organisations that effectively incorporate social value into their bids often gain a competitive advantage, as they align with the priorities of contracting authorities.
To learn more about how to incorporate social value into your bids and improve your chances of winning contracts via our free-of-charge assessment, get in touch via our contact form and we'll take you through how we can help you maximise your social value impact.
Don't forget to check out our other related blogs in the resources section of our website.
The growing importance of social value in bids
Did you know that by improving your social value score, you could add significant margin to your contracts? Discover tips and takeaways to help you win while making a difference.
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