Social value has become a big part of the conversation around public sector procurement. The Government’s latest procurement policy means social value is explicitly evaluated in all central government procurement exercises, focussing on suppliers' contribution to COVID-19 recovery, tackling economic inequality and fighting climate change as well as equal opportunity and employee wellbeing.
A recent example of this happening in practice is the new Digital Specialists and Programmes Framework (DSP), which along with other central government frameworks is available to local authorities. The framework will be used to find suppliers to support digital transformation across government and has a potential value of £4bn over six years. It put a major emphasis on social value - lot 2 of the framework awarded 60% of the marks on social value alone, with a lower but still significant 20% for lot 1.
Many councils recognise that SMEs can offer social value, but it will not look the same as the larger suppliers - which is why frameworks like the DSP focus on quality, not quantity. This recognition is inherently a good thing, with local authorities increasingly choosing to select tech suppliers based on their values in addition to the digital solutions on offer.
As the ones setting and evaluating this new criteria, there is definitely an opportunity for central and local government to change the culture of tech suppliers by exercising the choice they have.
So, how do you look for social value in your tech supplier, and how will that benefit the citizens living in your area? Does the recent shift in attitude, and culture, represent a permanent change to the way public services are delivered?
Changing what you look for
This shift in expectations from local authorities has changed how suppliers need to think about their services, not just how they sell them but how they can use their success to create social value. In my view, all the changes that this is driving within supplier organisations are good ones.
Ask about the supplier’s employee wellbeing as part of any procurement exercises. For me, that’s where the change starts from. If you're looking at a team that is stressed, overworked and under-rewarded, how effective are they going to be on the ground, delivering vital digital services that your local area needs? Happier teams are more productive teams, and there are suppliers out there who are really taking care of their people.
In addition, we should be well beyond questioning whether better representation of underrepresented groups in supplier teams is a good thing or not. So look for an inclusive, diverse team as well as a happy one. More representative teams build more inclusive, accessible and robust services, and this should be something high on the list of priorities to include in your search.
What does maximising social value look like?
So once you’ve decided to prioritise social value, how do you find an SME that demonstrates it? What do you look for?
It might seem easier to identify the social value of larger organisations where there are big numbers at play. But it’s often many small parts that make up the sum of social value within an organisation. Things like flexible working, proof of investment in learning and development, and strong wellbeing support for a workforce which is, in many cases, still dispersed across different remote locations.
Suppliers should be able to demonstrate that their recruitment processes reduce the potential for bias, for example by showing they anonymise applications and target job adverts where less represented people are more likely to see them. Perhaps they place more emphasis on how someone responds to real life challenges than on which university they went to, if they went at all. If a supplier shows that their actions reflect their spoken values, it goes a long way to proving that they are the right supplier to deliver services for citizens that have a variety of backgrounds and needs.
All suppliers on the DSP must have published carbon reduction plans and commit to net zero by 2050, and what companies are doing to minimise their impact on the planet is something you should look out for. Do suppliers use policies, approaches and tools that make sure they are creating genuinely inclusive public services? Some of the things local authorities do serve the most vulnerable or excluded people in society, and if suppliers don't make sure that they understand and meet their needs, then it’s not going to work. Creating sustainable and genuinely inclusive public services is incredibly important.
The future of social value in the public sector
Now that we’ve started down this road, I can’t see it being undone. There is a big political appetite across local authorities, and the wider public sector, to perpetuate a cultural shift towards adding greater value for communities and the environment.
Local authorities should demand more, and tech suppliers will need to deliver. That means suppliers continuing to evolve HR and recruitment policies, and adapting their processes and ways of working. And, above all, being able to demonstrate their value. There is every opportunity here to drive how suppliers operate in response to an ever-growing need for more compassionate and sustainable public services, and it shouldn’t be wasted.
Alex Jackson is client services director at dxw
