Source · Select Committees · Scottish Affairs Committee
Recommendation 75
75
Accepted
The MOD should set out how it evaluates social value in competitions, how it measures...
Recommendation
The MOD should set out how it evaluates social value in competitions, how it measures the delivery of social value in the contracts it negotiates, and how it holds contractors accountable to ensure they meet those targets. It should also, as contracts progress, track the delivery of social value and challenge contractors where targets are in danger of being missed. We encourage the Scottish Government to provide any assistance it can in measuring and monitoring social value of these contracts to local authority areas and economies. 115 Qq30–31 116 Q168 117 Evidence taken before the Defence Select Committee, 17 May 2022, Q34 118 Q28 119 Q160 120 Q239 121 Q233 122 Q234 Defence in Scotland: military shipbuilding 29 Understanding shipbuilding supply chains
Government Response Summary
The MOD uses the Cabinet Office Social Value Model as the framework, measures social value delivery using standard metrics, contract-specific metrics, and a Social Value Key Performance Indicator, and manages performance like any other contractual obligation with appropriate reporting and performance management terms.
Government Response
Accepted
HM Government
Accepted
The MOD uses the Cabinet Office Social Value Model as the framework for applying Social Value to its competitive procurements. The MOD measures the delivery of social value in its contracts in the following ways: (1) By using the standard reporting metrics where appropriate, set out in the Cabinet Office Social Value Model; (2) Via contract specific metrics, specific to the Social Value being delivered and agreed prior to Contract Award; and (3) Through a Social Value Key Performance Indicator for Category A procurements, which are published quarterly in accordance with the Cabinet Office Transparency obligations. Performance of Social Value is managed in the same way as any other contractual obligation. Contracts will include appropriate reporting obligations and performance management terms and conditions to hold Contractors to account, including Performance and Key Performance Indicators with associated remedies for under performance. Supplier performance issues, Social Value or otherwise, would be subject to normal escalation within the Department. In addition to the contract and internal departmental supplier management, the MOD has a formal framework for managing the relationship with its largest suppliers, including oversight of a supplier’s performance at a multi-contract or portfolio level. If a supplier was found to have issues with social value performance across a range of contracts, it is anticipated that this route would be taken to ensure appropriate discussion and corrective action.