Social Value

What social value is 

The Social Value Act 2012 states that all public bodies must consider social value when issuing a tender. Social value outcomes are deemed to be offers over and above what would normally be delivered from the contract. For example, they might help to improve economic, social, and environmental wellbeing, through creating new jobs, protecting the environment, tackling inequality, or improving health and wellbeing.

The council's commitment to social value

We recognise the worth of social value and the difference it can make to the people, communities, and businesses of Gateshead. We have made a bold commitment to actively apply the principles of the Social Value Act, and for all procurements over £100k there will be a weighting of 20% applied to social value. This is a much higher weighting than the regional and national average. To help deliver social value, we have adopted a Social Value Toolkit which contains several social value outcomes aligned to the priorities of Thrive and other council policies.

Early engagement

We engage early with the supply market and stakeholders to determine what social value outcomes could be applied to a contract. As part of this engagement we hold market engagement events with suppliers to identify what they think is achievable. We also work closely with internal colleagues from Climate Change, Economic Development, HR, Public Health, and Social Care, to reach a common understanding of how to maximise the social value that can be achieved from the contract. 

Tender evaluation

Tenderers are required to state what social value they could offer if they win the contract. The social value commitments can vary depending upon the contract. For example, suppliers may commit to employing local people, offering apprenticeships, donations in kind to schools or VCSEs, or supporting the reduction of carbon in Gateshead. Tenderers are scored on the social value they can offer. The more social value they offer, the higher the score they will achieve.

Monitoring the delivery of social value

We are using the UK Shared Prosperity Fund (UKSPF) to fund a post for a Social Value Coordinator. The Social Value Coordinator will ensure the delivery and coordination of the social value offers, working closely with VCSEs and internal and external stakeholders and suppliers. We have also developed a database to help monitor the delivery status of social value offers to ensure the offers stipulated by suppliers are delivered.