Social Value Model vs TOMs in Tender Procurement Questions: A Bid Manager's Essential Guide

Understanding the Social Value Model

The Social Value Model plays an important role in modern procurement by focusing on social and economic benefits in addition to financial considerations. The Social Value Model was developed in the UK as a response to changing priorities in public procurement.

The emphasis shifted towards integrating social value into contracts, particularly after the Public Services (Social Value) Act 2012 was enacted. This act encouraged public bodies to consider how their procurement decisions could improve the social, economic, and environmental well-being of their areas.

Over time, the Social Value Model has evolved to become a structured approach that ensures social value is measurable and incorporated into procurement processes. It aims to standardise how social outcomes are assessed and reported, thereby increasing transparency and accountability in public spending.

Principles of the Social Value Model

The Social Value Model is based on several key principles that guide procurement decisions. First, it mandates a minimum weighting of 10% for social value in evaluation criteria. This sends a very clear message about the importance of social benefits and how suppliers need to share the same values as the government, or at least support them! Bidders are therefore required to clearly outline how they will contribute to issues such as community engagement, employment opportunities, and environmental sustainability.

The model seeks to align public sector contracts with local priorities, enhancing community resilience and supporting economic growth. It encourages collaboration between public bodies and local organisations to develop tailored approaches that meet specific needs.

Application in Tender Procurement

In tender procurement, the Social Value Model provides a framework for evaluating bids beyond traditional financial metrics. It requires procurers to weigh social value explicitly during the evaluation process.

Using the SVM, public authorities can ask bidders to provide detailed plans on how they will deliver social benefits, such as job creation and community support initiatives. The inclusion of this model helps ensure that procurement decisions contribute positively to local communities.

This structured approach also allows for greater consistency across different contracts and sectors. By standardising the assessment of social value, public authorities can make more informed choices, fostering a competitive environment focused on delivering genuine social impact alongside economic benefits.

Exploring TOMs Framework for Procurement

The TOMs framework, or Themes, Outcomes and Measures, supports public procurement by defining clear metrics for achieving social value. This section covers its definition, role in measuring social value, and the benefits it presents in tender processes.

Definition of TOMs

The TOMs framework was developed to help organisations measure social value in public procurement. It provides a structured approach to assessing social impacts. The framework is built around several key themes, including community engagement, local economy, and environmental sustainability.

Each theme is broken down into specific outcomes, which are measurable indicators that track the impact of procurement activities. For example, one theme may focus on employment opportunities, aiming to improve job prospects for local residents. Overall, TOMs ensures clarity and consistency in how social value is defined and measured across various projects.

The Role of TOMs in Measuring Social Value

TOMs has been really helpful in helping organisations align their procurement strategies with social value objectives. By using this framework, they can evaluate how well tenders contribute to social outcomes. Each measure within the framework allows for direct comparison between bids based on social value delivered.

This systematic approach supports decision-makers by providing quantifiable data, which can enhance transparency and accountability in procurement. Additionally, TOMs encourages bidders to focus on sustainability and community benefits, further developing a culture of social responsibility within public sector tenders.

Benefits of Using TOMs in Tenders

Implementing TOMs in the tender process comes with numerous advantages. First, it promotes a greater emphasis on social value, allowing local communities to benefit directly from public spending. This focus can enhance the economic resilience of disadvantaged groups.

Second, TOMs aids in standardising the assessment of social value across different contracts. This ensures that all bidders are evaluated on the same criteria, leading to fairer competition. Furthermore, using TOMs can improve relationships between public authorities and suppliers. By prioritising social value, suppliers are encouraged to innovate and find new ways to meet community needs.

Incorporating TOMs in procurement processes leads to improved social outcomes, making it an important tool for public sector organisations.

Differences Between the Social Value Model and TOMs

The Social Value Model and TOMs serve different purposes within procurement. Each has different methodologies, which lead to varying impacts on procurement outcomes. The Social Value Model is often more associated with higher value or central government tenders, while the use of TOMs is still currently more popular within Local Authority tenders. It is important you assess which is used by the buyer. This will likely be detailed in the ITT, can we researched based on the buyers own Social Value strategy or by asking a clarification question through the portal.

Methodological Differences

The Social Value Model focuses on integrating social value into the procurement process with specific weighting assigned to social outcomes. It emphasises a tailored approach, enabling contracting authorities to determine what social value means for their specific context, for example, highlighting one specific theme which is important to them. They therefore only want your social value tender response to focus on providing commitments based on that theme.

Preparation for Tender Questions Regarding Social Value

Preparing for tender questions on social value requires a structured approach and is now key to effective bid management. This involves thorough research, aligning with specific requirements and creating a compelling social value proposition. Each element is critical to ensuring a strong submission.

Research and Planning Strategies

Successful tender preparation starts with in-depth research. Bid managers should analyse past tenders to understand what has worked well previously, as well as finding examples of previous successful examples, which the buyer promotes as best practice.

Understanding the specific social value expectations of the contracting authority is essential. Each public body may have different guidelines and priorities regarding social value. Engaging with stakeholders, such as local community groups, can provide insights into their needs.

A checklist can help keep track of relevant information and requirements. For instance:

• Review local social value policies.
• Identify community priorities and needs.
• Gather data on previous contracts and their social impact.

Effective bid planning sets the foundation for a successful tender response.

Aligning with Specific Tender Requirements

Aligning the tender response with specific requirements is crucial. Each tender should clearly state social value criteria. Therefore, it is vital to tailor responses that reflect these points directly.

Bid managers must identify how their organisation's capabilities match the tender criteria. This means connecting proposed services to social value outcomes, such as:

• Employment opportunities created.
• Environmental benefits.
• Community engagement strategies.

Additionally, each response should be clear and concise. Providing measurable outcomes can strengthen the argument with dates of when they will be achieved.

Creating a Social Value Action Plan

A Social Value proposition should include actionable points. For example:

• Specific skills training programmes.
• Partnerships with local charities or organisations.
• Plans for sustainable practices.

Using clear, measurable goals can also reinforce the proposition. For instance, stating a commitment to reducing carbon emissions by 20% can provide clarity, support by your Carbon Reduction Plan.

Visual aids, such as infographics or tables, can help illustrate social value outcomes effectively, for example:

Bid Management Strategies

Effective bid management strategies are essential for ensuring that all aspects of a tender are organised and collaborative. Key social value tender preparation includes:

• Developing a Social Value Strategy
• Agreeing and implementing systems to collate what you do now
• Create new library or bid template information, which contain social value tender responses, which include pre-agreed commitments based on contract type and size.

As well as writing social value responses for our clients, we also sell 4 bespoke bid writing templates which provide answers to frequently asked tender questions, including Social Value responses. Contact us for more details.

Monitoring and Reporting on Social Value

Monitoring social value is a critical aspect of contemporary procurement and bidding. The bid manager must ensure that the team effectively tracks and communicates social value contributions. This also provides great evidence for future bids!

• Key Performance Indicators (KPIs): Establish specific KPIs to measure success in delivering social value. This might include employment outcomes or community engagement metrics.
• Regular Updates: Providing regular updates on these KPIs keeps the team motivated and accountable. It may also help in making real-time adjustments to strategies.
• Transparent Reporting: Develop a clear reporting structure to communicate social value achievements to stakeholders. This transparency enhances credibility and highlights the organisation's commitment to social value.

Performance Evaluation in Social Value

Evaluating performance in social value is crucial for understanding the impact of initiatives. This assessment helps ensure that social value commitments are being met and provides insights for future improvements. The following sections focus on quantifying impact and integrating continuous feedback.

Measuring and Assessing Impact

Measuring impact requires selecting clear metrics aligned with social value objectives. Key performance indicators (KPIs) might include community engagement levels, job creation, or environmental benefits. It is important to gather both quantitative and qualitative data for a comprehensive view.

Using tools such as surveys, case studies, and impact assessments can yield valuable insights. Soliciting feedback from stakeholders can enhance the evaluation process. Regularly analysing these metrics allows organisations to determine whether goals are being met.

Additionally, third-party evaluations can provide an unbiased perspective. Engaging with external reviewers can also bring credibility to the evaluation process. A robust assessment framework should be established to ensure transparency and consistency.

Continuous Improvement and Feedback Loops

Continuous improvement involves regularly reviewing performance and integrating feedback into the process. Establishing feedback loops allows organisations to adjust strategies based on real-world outcomes. This can include monthly reviews or annual impact assessments.

Training employees on the importance of social value can foster a culture of continuous improvement. Encouraging team members to report challenges or successes can lead to effective solutions. This responsiveness helps maintain momentum in achieving social value goals.

Collaboration with stakeholders is vital in this process. Regular consultations with community members and partners can provide insights that inform adjustments. These partnerships foster trust and ensure that social value initiatives remain relevant and impactful.

Frequently Asked Questions

This section addresses common queries regarding the Social Value Model and TOMs in tender procurement exercises.

How can a bid manager effectively incorporate the Social Value Model into a tender proposal?

You start by analysing the specific social value priorities outlined in the relevant procurement documentation. They should clearly detail their priorities. Alongside the government guidance on Social Value Models and how they will be evaluated you can build a really strong response, especially when combined with effective bid management skills!

Can you explain the five key themes of the Social Value Model used in public sector procurement?

The five key themes are:

1. Covid-19 recovery – Contributing to economic recovery efforts post-pandemic.
2. Tackling economic inequality – Reducing disparities in wealth and opportunities.
3. Fostering a diverse supply chain – Encouraging participation from a diverse range of suppliers.
4. Improving well-being – Enhancing the quality of life for individuals and communities.
5. Respecting the environment – Promoting sustainable practices and reducing environmental impact.

What strategies can be employed to maximise points under the Social Value Model during the tender process?

To maximise points, a bid manager should carefully map all proposed activities to the Social Value Model's criteria. Clear communication of specific benefits and outcomes is vital. They should also engage stakeholders and use case studies to provide evidence of potential impact, making a compelling case for their bid.

How does the National TOMs Framework influence the evaluation of social value in procurement tenders?

The National TOMs Framework provides a common language and set of metrics for assessing social value across various sectors. It influences procurement tenders by establishing standardised indicators, allowing for consistent comparison of proposals. This helps ensure that social value is quantified and considered transparently in the evaluation process.