New ‘Social Value’ contracts to ‘revolutionise’ government procurement

New government procurement rules to “drive social change” were announced by the Cabinet Office yesterday.

Cabinet Office Minister David Lidington used the opportunity of a speech to the SME membership organisation the Business Services Association (BSA) in central London to detail how government procurements will be required to take social and economic benefits into account in “certain priority areas”.

These new measures – designed to be up and running by summer 2019 – include supporting small businesses, providing employment opportunities for disadvantaged people and reducing harm to the environment, says the government.

In practical terms, that means more Whitehall efforts to deliver a “healthy and diverse marketplace of companies” bidding for government contracts, including more SMEs, mutuals, charities, co-operatives and social enterprises, as well as: specific help for access for small businesses, helping access for businesses owned by under-represented groups, increased representation of disabled people in the workforce and reduced environmental impact.

“Public services should be delivered with values at their heart [so] it is right that we use government’s purchasing power to benefit society,” Lidington told delegates.

Central government is also to “shortly” publish previously unrelated data, not seen about the performance of critical contracts, such as response rates and if they are delivering on time, will review and enhance the government’s Supplier Code of Conduct and there’s to be a “scaling-up” of the GovTech catalyst programme to ensure the best ideas and technologies are assessed quickly – with plans to be published in Spring 2019

In a parallel move, key companies have been told to draw up their plans in the “rare event” of supplier failure – a la, Carillion – which, in a rather dramatic phrase, are being labelled their ‘living wills’.

Capita, Serco and Sopra Steria have already signed up, claims Lidington, who added, “Carillion was a complex business and when it failed it was left to government to step in – and it did, but we did not have the benefit of key organisational information that could have smoothed the management of the liquidation.

“By ensuring contingency plans can be quickly put in place in the very rare event of supplier failure, we will be better prepared to maintain continuity of critical public services.”