Navigating the NPPS: What Social Value Practitioners Need to Know

Last week, the Government released details of the new National Procurement Policy Statement (NPPS). This policy highlights public procurement as a crucial tool for achieving the Government’s ‘5 missions,’ delivering value for money to taxpayers, driving economic growth, and benefiting local communities.?

The NPPS will apply to all contracting authorities who are considered ‘in-scope’ which includes central government, local and regional government, and qualifying bodies.??

The NPPS works in tandem with the Procurement Act 2023 (which comes into effect on 24th February) and sets out how public sector bodies buys goods, services, and works.??

What does this mean for Social Value practitioners??

1. Embedding Labour's 5 Missions?

The NPPS now incorporates Labour's 5 Missions, which are part of the broader Government’s ‘Plan for Change.’ These missions include raising living standards across the UK, accelerating the transition to Net Zero, and reducing crime.??

This alignment ensures that public procurement supports these ambitious societal goals, making every contract a step towards achieving these targets.?

2. Redefining 'Value for Money'?

The NPPS redefines 'value for money' by outlining eight specific goals that contracting authorities must meet. These goals include maximizing spending with local small medium-sized enterprises (SMEs) and voluntary, community and social enterprises (VCSEs), ensuring high-quality jobs, and promoting ethical employment practices.?

3. Focus on Social Value?

The updated Social Value Model requires suppliers to show how they can meet these eight outcomes, measured by 27 Social Value reporting metrics. This model aims to ensure that social value commitments are not just promises but are reflected in contract terms and key performance indicators.?

4. New Procurement Policy Notes?

Over the last two weeks, new Procurement Policy Notes (PPNs) were released and apply to all ‘in-scope organisations.??

These PPNs provide guidance on best practice for public sector procurement, such as spending targets with SMEs and VCSEs, how to ensure social value is considered in contract awards, and Carbon Reduction Plans.?

5. Long-Term Strategic Objectives?

The NPPS has been designed to allow for long-term strategic objectives for all ‘in-scope’ contracting authorities. This statutory instrument ensures that public procurement aligns with the government's long-term goals whilst considering local priorities, making it a powerful tool for driving social and economic value.?

There are likely to be delays with contract awards as both authorities and suppliers digest the changes and learn how to use them effectively. Suppliers wanting to work with ‘in-scope’ contracting bodies have to demonstrate ‘value for money’ by achieving the NPPS’s eight goals, and meeting with the Government’s priorities.?

Cavendish are experts in speaking the language of Government and understand that development projects should bring lasting benefits to the communities that they sit in. Our social value specialists help cement project’s positive legacy, enhancing our clients’ reputations with the government, local authorities, and communities.??

Cavendish is arranging a roundtable to discuss Social Value and the effects the Procurement Act 2023 will have on the industry.?If you would be interested in attending, get in touch here.

Written by,

Christopher Weatherburn | Associate Director