PPN 002 Social Value Model
A New Era for Social Value in Public Procurement:
The UK government’s Procurement Policy Note (PPN) 002 represents a significant shift in the way social value is embedded into public procurement. Building on PPN 06/20, this update aligns with the Procurement Act 2023 and introduces stricter evaluation criteria, requiring both contracting authorities and suppliers to take a more structured, accountable, and measurable approach to social value.
But what does this mean in practice? In this article, we break down PPN 002, highlight its impact on public sector buyers and suppliers, and provide actionable insights for those navigating this new landscape.
1. What’s New in PPN 002?
While the core principles of PPN 06/20 remain, PPN 002 introduces key refinements that make social value more than just a compliance exercise:
Mandatory Social Value Weighting
A minimum of 10% weighting in procurement evaluations is now mandatory.
Contracting authorities must justify any decision not to apply social value criteria.
Contractual Accountability & Reporting
Social value commitments must be contractually binding and tracked throughout the contract lifecycle.
Authorities must ensure suppliers report on progress with clear, auditable KPIs.
Alignment with Procurement Act 2023
PPN 002 is fully aligned with the new Procurement Act 2023, ensuring social value is an essential evaluation factor rather than an optional consideration.
Greater transparency & consistency across public sector procurement.
Standardised Social Value Themes
Contracting authorities must choose relevant social value themes from a standardised framework, ensuring consistency across evaluations. These themes include:
Economic Growth & Resilience – Supporting SMEs, VCSEs, and job creation.
Environmental Sustainability – Helping authorities meet Net Zero goals.
Equal Opportunity & Inclusion – Promoting diverse, accessible supply chains.
Health & Wellbeing – Supporting workforce and community wellbeing.
2. What Does This Mean for Contracting Authorities?
Opportunities:
Improved Evaluation Consistency – Standardised criteria reduce subjectivity in assessing social value.
Better Supplier Performance – Stronger contractual obligations ensure suppliers deliver on their commitments.
Greater Transparency – Aligned with the Procurement Act 2023, making procurement decisions more auditable.
Challenges:
Administrative Burden – More resources required to evaluate and monitor social value commitments.
Skills Gap – Procurement teams need training on evaluating and enforcing social value KPIs.
Enforcement Issues – Holding suppliers accountable for social value delivery remains complex.
Action Items for Contracting Authorities:
✔ Embed Social Value Early – Ensure criteria are set before tendering begins.
✔ Use Technology – Digital tools can help track and report social value progress.
✔ Upskill Procurement Teams – Training in social value evaluation and contract management is critical.
3. What Does This Mean for Suppliers?
Opportunities:
Competitive Advantage – Suppliers that can demonstrate clear, measurable social value will stand out.
New Market Access – PPN 002 creates opportunities for SMEs & VCSEs, encouraging large suppliers to partner with them.
Stronger Business Models – Companies that embed social value in their core strategy will perform better in future bids.
Challenges:
More Scrutiny on Social Value Claims – Suppliers must provide detailed, auditable evidence of their commitments.
Higher Compliance Costs – Businesses may need to invest in expertise & data management tools.
Increased Reporting Requirements – Authorities will demand regular, transparent updates on social value impact.
Action Items for Suppliers:
✔ Shift from Compliance to Strategy – Make social value a core business function, not just a bid-writing exercise.
✔ Strengthen Data & Reporting – Ensure robust tracking of social value KPIs for contract delivery.
✔ Collaborate with experienced Social Value Consultants – This improves bid competitiveness and aligns with procurement goals.
The Future of Social Value in Procurement
PPN 002 marks a new phase of social value accountability. No longer a tick-box exercise, it is now a core evaluation and contract management requirement. For both contracting authorities and suppliers, this shift presents opportunities for innovation and improvement—but also challenges in implementation.
The future of public procurement is not just about price—it’s about purpose. PPN 002 ensures that social value is no longer an option by making social impact a contractual obligation.
Key takeaways
Those who embrace social value as a business imperative will thrive. Those who see it as just another compliance hurdle will struggle.
How Can You Stay Ahead?
Suppliers: Start integrating social value impact measurement into your business strategy now.
Contracting Authorities: Invest in training, tools, and systems to ensure social value delivery is measurable and impactful.
About the Author
Omar Hadjel is a Senior Social Value Consultant, specialising in public sector procurement and sustainability-driven procurement strategies. With extensive experience advising both contracting authorities and suppliers, Omar helps organisations navigate complex procurement regulations, embed social value into their operations, and secure public sector contracts.
His expertise spans:
Bid and procurement strategy – guiding suppliers on public contract readiness.
Social value implementation – aligning businesses with PPN 002, PPN 06/20, and government procurement policies.
Sustainability and ESG advisory – integrating Net Zero commitments, social value KPIs, and environmental impact reporting into procurement.
Omar has a proven track record of helping organisations win contracts, deliver measurable social value, and comply with evolving UK procurement legislation. He is also an advocate for transparent, ethical, and sustainable public procurement practices.
