Social Value in Government Procurement

When managing the country, the government has a lot on its plate so it woul dbe easy to think they would overlook any social value in government procurement.

However, these governmental decisions may not always be quite as straightforwards as they can appear at the surface since any procurement activities are often likely to be subject to strict analysis, assessment, and critique from other governmental bodies and parties.

With this in mind, even for the most menial of procurement activities, the social value must always remain a key priority in government procurement.

Fortunately, this is something our experts understand better than most – which is why we’re outlining some of the basics of social value in government procurement as follows.

Governmental Spending is Subject to Strong Critique

Undeniably, all government spending is typically subject to very strong critique.

This critique comes from many different sources, be it from members of the public directly, from other members of parliament, and the like.

As such, ensuring that every spending decision provides value is integral since it is likely that unnecessary spending or spending that doesn’t offer a good return in terms of societal or community improvements will be strongly criticised.

Delivering Value for Money Services to Communities

Governmental procurement is a very specific and unique field since the funds used are derived from taxpayers’ payments.

With this in mind, while a business has the liberty to spend its income and profits as it sees fit, governmental bodies must deliver value for money services to communities in exchange for their tax payments.

As such, governmental departments are increasingly considering how their procurement activities deliver social value.

After all, even simple sourcing and stocking changes can positively impact communities.

An example of this might be procuring equipment and furnishings directly from British manufacturing companies, providing a boost to the economy through the procurement process.

What is Social Value in Government Procurement

Social value is a measure of the positive value changes derived from actions and business activities – and this can also apply to governmental spending.

However, while most businesses only benefit from reputational boosts through social value enhancements, governmental bodies are almost obligated to provide social value through spending choices.

Therefore, focusing on social value during the product procurement process is a simple way for governmental organisations to boost social value without having to invest specifically in social value projects.

The Role of Private Businesses and Social Value in Government Procurement

However, this social value responsibility is also shared by firms providing government procurement services. Indeed, while governmental bodies should focus on procurement from companies providing good social value, it is the firm’s responsibility to uphold this.

As such, when working alongside governmental bodies for procurement or bidding for such opportunities, firms should focus on increasing the social value they can provide.

This factor could be through economic benefits (e.g., using only British goods). Alternatively, the firm could provide local or national social benefits, such as investing in local infrastructure, supporting charitable causes, and the like.

How Companies Can Deliver Social Value During Governmental Cooperation

Companies working for governmental organisations should also focus on minimising the negative impacts of their activities. For example, in governmental construction projects, firms should aim to reduce the negative impacts of the construction work.

One option here would be to ensure all work is completed during sociable hours. In this example, firms could also focus on reducing traffic disruption to offset negative social value impacts by managing incoming and outgoing traffic so as not to disrupt the local community during construction.

Invariably, the exact opportunities and challenges for social value will vary from firm to firm.

However, businesses must always consider this carefully when working on governmental projects to reduce the risk of long-term complications and ensure the project delivers social value for the community.

Final Thoughts

Governmental bodies are taking an ever-greater stance to ensure that public spending is suitably managed.

After all, most governmental funds come directly from public members in the form of taxes; with this in mind, they must be delivered with value-for-money services accordingly.

Considering social value during the government procurement process is, hence, a highly effective step to increase the suitability of procurement decisions. 

However, the responsibility for enhancing social value typically falls on governmental bodies and companies. As such, if your business has been bidding for government-funded projects, ensuring you can deliver great social value is a sure way to set you apart from the crowd.