PPN 026 is a significant narrowing, and worth understanding early if any part of your income comes from central government contracts.
The definition narrows
From five themes to two outcomes.
Social value for central government is now defined as how a supplier will work for communities to provide good British jobs, skills and opportunities in every postcode. The model has two outcomes: Good jobs (creating and retaining quality jobs, fair working conditions, fair pay) and Skills (training and retraining that addresses shortages and reaches people facing barriers to work).
A size threshold appears
£1m and above, including VAT.
PPN 026 applies only to covered procurements valued at £1 million total contract value including VAT or above. PPN 002 had no such floor, so smaller central government contracts fall outside the model altogether.
The weighting rises with value
10% under £5m, 20% at £5m and above.
For contracts from £1m up to £5m, a minimum 10% of the total score. At £5m and above, a minimum 20%. Where a Price per Quality Point method is used, that is 10% or 20% of the quality score.
Promises become KPIs
At £5m, at least one social value KPI.
Commitments made during the procurement must be monitored through contractual mechanisms. For contracts of £5m or more, at least one social value KPI is set, on top of the KPIs the Procurement Act already requires.