PurposeThe value chain is an essential management tool for the elaboration of strategic organizational planning. However, there are few published works providing methods for the development of value chains. This research aims to present a model to develop the value chain for the public sector.Design/methodology/approachAction research was used with case study in the evaluation step.FindingsThis research presents a model for value chain development along seven steps, covering data collection planning to the formalization of final product acceptance. The model suggests executing these seven steps in three iteration levels: operational, tactical and strategic. Through case studies, six practical insights were also highlighted in this work.Research limitations/implicationsGiven the absence of related work, one of the limitations is the lack of comparison with other methods of value chain development in the public sector.Originality/valueThere are practical guides to value chain development in the public sector; however, to the best of authors’ knowledge, such guides have not been developed using research methods. In the literature, no works provide details on how value chain can be developed in the public sector. In addition, the constraints of face-to-face contacts during the COVID-19 pandemic led the research team to conduct remotely the model's development and evaluation in the case studies. The model presents elements that enable value chain development without face-to-face contact between the execution team and public institution's stakeholders.