Source · Select Committees · Scottish Affairs Committee
Recommendation 73
73
Acknowledged
We heard there was some uncertainty over how MOD assessed social value, and how delivery...
Conclusion
We heard there was some uncertainty over how MOD assessed social value, and how delivery of social value would be measured. Industry representatives told the Defence Committee that social value was “probably the biggest factor in deciding who will win these contracts, and we don’t understand what the criteria are.”117 Kevin Craven of ADS Group gave us the example of job creation, asking how the MOD would judge “the difference between a bidder offering 200 new jobs for five years compared with someone who commits to maintaining 150 permanent jobs.”118 Hans Pung of RAND Europe said it was not clear whether only social value delivered in the UK would be counted towards the criteria, and if so how that would be measured.119 It was also not clear what penalties contractors would face if they did not deliver the social value they had promised.120 When we asked how delivery of social value was measured, we were told by Vice Admiral Paul Marshall that “we are getting greater detail on where it is working, because we have the governance in place because it is a contractual obligation.”121 He added that apprentice numbers were one measure that was being used.122
Government Response Summary
Both the NSO and the MOD are committed to ensuring that social value commitments through Government shipbuilding procurements and investments are delivered, with the contracting authority mandated to assess the supplier’s performance.
Government Response
Acknowledged
HM Government
Acknowledged
Both the NSO and the MOD are committed to ensuring that social value commitments through Government shipbuilding procurements and investments are delivered. Under the Cabinet Office Social Value Model, the contracting authority is also mandated to assess the supplier’s performance. This includes monitoring and recording any social value commitments made by the supplier for the entirety of the contract lifespan.