Social Value: How to Prepare for your next NHS Tender

In the procurement of goods and services, NHS organisations must now consider social value when assessing bids. To gain some valuable insight, we examine the most recent procurement guidance.

Starting April 2022, the UK Government's 'Social Value Model' now applies to the procurement and purchase of goods and services by NHS organisations and their representatives (known as in-scope organisations).

To assist in implementing this change, NHS England has released "Applying net zero and social value in the procurement of NHS goods and services'" which offers step-by-step guidance for procurement teams to apply the requirements within the NHS context.

The 'Social Value Model' outlines the government's social value priorities for procurement and includes a range of social value objectives focused on five themes:

1. COVID-19 recovery

2. Addressing economic inequality

3. Combating climate change

4. Ensuring equal opportunities

5. Promoting well-being.

How to Prep

The implementation of the Social Value Model of the central government is in line with the NHS's strategic policies and initiatives such as the '2019 NHS Long-Term Plan' and its commitments outlined in the 2020 report 'Delivering a Net Zero National Health Service.'

The adoption of the model will be aided by the availability of a new Sustainable Supplier Assessment by 2022.

In-scope organisations can apply the requirements of the model to an NHS procurement contract by following the guidelines. Some of the crucial points to consider from the guidance are:

• The 'Fighting Climate Change' theme of the Social Value Model must be included in all NHS procurement to support the NHS's net zero carbon objectives. This may be done through the technical specification, social value criteria, or a combination of both, as appropriate to the service requirements.
  

• In-scope organisations have the discretion to determine the level of emphasis to place on net zero and social value in a procurement, either at or above the 10% minimum. This will be influenced by the nature of the product or service being procured. For example, logistics contracts may prioritise low or zero emission vehicles; whereas cleaning contractors could emphasise employment and training strategies.
  

• When awarding contracts, purchasing authorities will require suppliers to provide measurable social value metrics in their tender responses that become contractual obligations.
  

In-scope organisations must determine which social, economic, and environmental themes from the Social Value Model are pertinent to each specific tender they choose to bid on. Nonetheless, the 'Applying net zero and social value in the procurement of NHS goods and services' guidance offers valuable foresight for bidders seeking to gain a competitive edge by planning ahead.