Briefing: Will government application of a 10% award value for social initiatives lead a change?

Abstract

Despite dissenting voices across Europe, Northern Ireland (NI) introduced a 10% section of the award for Social Value (SV) in Government Contracts over the financial threshold through “PPN01/21 Scoring Social Value”. The European Union (EU) position is that public authorities may face legal challenges through mandatory application of social and sustainable award criteria. PPN01/21 has become a case study though its mandatory application in NI, and this study has feedback from members of the Association for Consultancy and Engineering (ACE) which represents the Construction and Engineering Profession there. Eighteen out of 19 companies with experience of contracts where PPN01/21 applied responded. The results provide for the first time a way of marking SV with 53% suggesting implementation of a points based system rather than qualitative questions. Also provided is a list of content that should be included in measurement of SV based on empirical data. An interesting finding is that 81% support the EU adopting a similar scheme. In relation to the Award percentage, there is an even split between the award value remaining at 10% or increasing.to 20%. Nobody suggested a decrease and no legal challenges have arisen suggesting that the EU should press ahead with adoption.