Talk to us 01204 238 046

Social Value Model vs TOMs: What Suppliers Need to Know

Written by Thornton & Lowe

|

Aug 26, 2024

The Social Value Model and TOMs are both commonly encountered when bidding for public sector contracts, but they aren’t the same thing.

The Social Value Model is a government procurement model used to evaluate social value in relevant central government tenders. The Social Value TOM System, formerly known as the National TOMs, is a framework for measuring and reporting social value.

That distinction matters when you’re preparing a bid. A tender using the Social Value Model may ask you to respond against specific government award criteria. A TOMs-based tender may require you to select measures, enter commitments into a calculator or spreadsheet, and explain how those commitments will be delivered.

In either case, the tender documents should determine your approach.

Social Value Model vs TOMs at a Glance

Social Value Model

TOM System

What is it?

Government model for evaluating social value in relevant procurements

Framework for measuring and reporting social value

Who developed it?

UK Government

Social Value Portal, working with public, private and third-sector organisations

Where might you see it?

Relevant central government procurement; other public buyers may choose to adopt the approach

Used by a range of organisations and public sector buyers

Current structure

Good Jobs and Skills, with six Model Award Criteria under PPN 026

Work, Economy, Community and Planet, supported by Outcomes and Measures

How is value assessed?

Tender responses are evaluated against the selected award criteria

Activity can be measured in units and, where applicable, financial proxy values

Does it have a set tender weighting?

Under PPN 026, at least 10% or 20% depending on contract value

No universal weighting; this depends on the buyer and procurement

Is it mandatory for every public tender?

No

No

Both can help buyers consider the wider benefits created through a contract, but they approach that task differently.

For more background on the wider subject, our guide to social value in tenders covers the legislation, policy changes and practical implications for suppliers.

Hr team meeting

The Social Value Model

The government Social Value Model provides a structured way for relevant contracting authorities to include social value in tender evaluation.

A major change is approaching. PPN 026: The Social Value Model applies to relevant procurements commencing on or after 1 January 2027. It applies to central government departments, their executive agencies and non-departmental public bodies for covered procurements valued at £1 million or more including VAT.

Other public sector contracting authorities can choose to adopt the approach, but they aren’t automatically required to do so.

Good Jobs and Skills

PPN 026 significantly streamlines the Social Value Model.

It has two Outcomes:

  • Good Jobs
  • Skills

These are supported by six Model Award Criteria:

  1. Create and/or retain high-quality jobs
  2. Fair working conditions
  3. Fair pay
  4. Training/retraining
  5. In-work progression
  6. Talent pipeline

The focus is therefore strongly on employment opportunities, workforce conditions, skills development and helping people facing barriers to employment.

This is a significant difference from previous versions of the Social Value Model, which covered a broader range of policy outcomes.

Social Value Weighting

PPN 026 also introduces different minimum weightings according to contract value.

For contracts valued at £1 million or more but under £5 million, social value must account for at least 10% of the total tender score, or equivalent measurement.

For contracts worth £5 million or more, this rises to at least 20%.

For those larger contracts, at least one social value KPI must also be set, with commitments monitored during contract delivery.

These requirements apply specifically to procurements within the scope of PPN 026. They shouldn’t be treated as universal social value weighting rules across every public sector tender.

Meeting around table

The Social Value TOM System

TOM stands for Themes, Outcomes and Measures.

The framework previously known as the National TOMs is now called the Social Value TOM System by Social Value Portal. It provides organisations with a structured approach to recording and reporting the social value generated through their activities.

The current TOM System is organised around four Themes:

  • Work: providing opportunities
  • Economy: driving inclusive growth
  • Community: empowering communities
  • Planet: environmental stewardship

Within the Themes sit Outcomes describing the change an organisation wants to achieve, followed by Measures representing quantifiable actions.

Our National TOMs guide goes into more detail on how the framework works, including TOM measures, calculators, proxy values, evidence and reporting.

How TOMs Measures Social Value

One of the main differences between TOMs and the Social Value Model is the role measurement can play.

TOM measures can quantify activities using relevant units. Depending on the measure, that could involve employment, training, volunteering, environmental improvements or other forms of social value.

Many measures can also be assigned a financial proxy value, allowing different types of activity to be expressed through a common Social Value £ figure.

This can be useful when a buyer wants a structured way of comparing or monitoring commitments.

It doesn’t mean the highest calculated figure automatically represents the strongest tender response.

A commitment still needs to be relevant to the contract, additional where required, achievable and supported by a credible delivery plan. If a supplier enters an ambitious figure into a TOMs calculator without establishing how the activity will actually happen, it may create a significant delivery risk after award.

Not sure which social value approach applies?

Talk to our bid team

The Main Differences

The simplest distinction is that the Social Value Model primarily tells an in-scope central government buyer what social value outcomes and award criteria to evaluate, while TOMs provides a framework for measuring social value activity.

There are several practical differences behind that.

Who Uses Them?

PPN 026 has a defined scope. It applies to central government departments, executive agencies and non-departmental public bodies for qualifying procurements from January 2027.

TOMs doesn’t have that same statutory or policy scope. Organisations can choose to use the TOM System to help structure, measure and report social value.

As a supplier, don’t assume that a local authority tender will automatically use TOMs or that every government tender will use exactly the same methodology.

Check the ITT, evaluation criteria, social value schedule and any supporting policy documents.

What Do They Measure?

PPN 026 is tightly focused on Good Jobs and Skills.

The TOM System remains broader, covering Work, Economy, Community and Planet.

This means an environmental initiative, for example, could be highly relevant to a buyer using appropriate TOM measures even though environmental sustainability isn’t one of the two Outcomes in the new PPN 026 Social Value Model.

That doesn’t mean environmental considerations have disappeared from public procurement. They can continue to appear through buyer-specific social value requirements, specifications, award criteria and other procurement policies.

How Are They Scored?

Under PPN 026, suppliers are evaluated against the Model Award Criteria selected by the contracting authority.

The criteria must be relevant to the subject matter of the contract, proportionate and applied in accordance with procurement rules. Detailed sub-criteria and practitioner guidance are due to support the model.

Where TOMs is used in a procurement, the buyer may ask suppliers to select or respond against particular measures and quantify the activity they are proposing. This may involve a TOMs spreadsheet, calculator or online platform alongside a written response.

There is no single TOMs tender weighting that applies across every procurement.

How Should You Write the Response?

With the Social Value Model, your starting point should be the specific Outcome, Model Award Criterion and eventual sub-criteria selected by the buyer.

If the criterion concerns creating and retaining high-quality jobs, for example, your answer needs to demonstrate how contract delivery will create or retain relevant roles, address identified skills shortages and give communities access to those opportunities.

With TOMs, you may need to work backwards from the measures selected by the buyer.

If you’ve committed to a defined quantity against a particular measure, the written response should explain:

  • what you’ll deliver;
  • who will benefit;
  • how the target was calculated;
  • how the activity will be delivered;
  • who owns delivery;
  • when it will happen; and
  • what evidence you’ll provide.

Your written response and TOMs calculator should tell the same story.

For more help with that part of the process, see our guide to answering social value tender questions.

Which Model Does My Tender Use?

Start by checking the ITT and supporting schedules.

Look for terms such as Social Value Model, PPN 026, Model Award Criteria or MACs. These indicate that the government model is likely to be relevant.

References to TOMs, National TOMs, Social Value TOM System, Social Value Portal, individual TOM measures or a social value calculator indicate a TOMs-based approach.

Some buyers will have their own social value policy or framework instead.

The tender could also be operating under an earlier version of the Social Value Model during the transition to PPN 026. For central government procurements commenced before 1 January 2027, organisations can continue using the previous edition where moving to the new model would require disproportionate resources or undermine earlier market engagement.

Don’t overwrite the requirements in front of you with the newest framework simply because you’re aware that policy has changed.

Questions and answers

Preparing for Social Value Model Questions

For a tender using PPN 026, start by identifying the Model Award Criterion selected by the buyer and the specific need behind it.

If the buyer is focused on Training/Retraining, for example, identify the skills shortage or employment barrier the activity is intended to address. Then build commitments around the contract’s genuine ability to deliver relevant training.

A credible answer might establish:

  • the identified skills need;
  • the number and type of opportunities;
  • the target participants;
  • delivery partners;
  • timescales;
  • responsible people;
  • intended outcomes; and
  • reporting arrangements.

The same principle applies across Good Jobs, Fair Working Conditions, Fair Pay, In-work Progression and Talent Pipeline criteria.

Avoid responding with a general list of everything your organisation does for employees and communities. Focus on what the buyer has selected and what you’ll deliver through the contract.

Preparing for TOMs Questions

With TOMs, it can be tempting to start with the spreadsheet. We recommend starting with delivery instead.

Review the measures selected by the buyer and identify which ones genuinely connect with the contract and your operational capability. Discuss proposed targets with HR, operations, sustainability, commercial teams and relevant delivery partners before committing to them.

Then translate the agreed activity into the TOMs schedule. This reduces the risk of building an impressive Social Value £ figure based on commitments the business hasn’t approved or doesn’t have the resources to deliver.

You should also establish evidence requirements early. If a commitment involves apprenticeships, employment, supply chain spend, volunteering or environmental activity, determine how the relevant data will be collected and who is responsible for it.

Woman sticking up post its

Monitoring Commitments

Whichever approach the buyer uses, social value shouldn’t end when the tender is submitted. Commitments can become contractual obligations and may need to be monitored throughout delivery.

This is particularly important under PPN 026. In-scope organisations must ensure supplier commitments are appropriately monitored and measured through contractual mechanisms, and contracts worth £5 million or more must include at least one social value KPI.

TOMs-based contracts can also require regular evidence and reporting against the measures committed during the tender.

A useful bid response therefore explains not only what you’ll deliver but how your organisation will control, review and report delivery.

Common Mistakes

One of the biggest mistakes is assuming that Social Value Model and TOMs terminology can be used interchangeably.

Other common problems include selecting initiatives before reading the buyer’s criteria, using an old TOMs measure set, copying commitments from a previous tender without checking their relevance, and treating a calculated Social Value £ figure as a substitute for a delivery plan.

Overcommitting is another risk. A bidder might feel pressure to offer more jobs, apprenticeships, training hours or community activity to improve its score. Those promises still need to be delivered if the contract is won.

Strong social value responses balance ambition with evidence, ownership and operational reality.

Social Value Model vs TOMs FAQs

Is the Social Value Model the same as TOMs?

No. The Social Value Model is a government procurement model used to evaluate social value in relevant central government tenders. TOMs is a separate framework developed by Social Value Portal for measuring and reporting social value.

Does PPN 026 replace TOMs?

No. PPN 026 introduces a new Social Value Model for relevant central government procurements from January 2027. It doesn’t abolish or replace the TOM System.

Does every public sector tender use the Social Value Model?

No. PPN 026 has a defined central government scope. Other public sector organisations may adopt its approach, use TOMs, operate their own social value framework or set different requirements.

Does every council use TOMs?

No. TOMs is widely used, but individual authorities can take different approaches. Always check the buyer’s own policy and tender documents.

Should I use TOMs if the tender doesn’t mention it?

Not automatically. A TOMs-style approach might be useful internally for planning or measuring social value, but your tender response should follow the methodology specified by the buyer.

What if my tender refers to the previous Social Value Model?

Follow the procurement documentation. During the transition to PPN 026, some central government procurements commenced before 1 January 2027 may continue using the previous model.

Social Value Bid Support

Understanding which model applies is only the starting point. The bigger challenge is turning the buyer’s requirements into specific commitments that are relevant, measurable and realistic to deliver.

Thornton & Lowe helps suppliers develop social value strategies and tender responses, including support with government Social Value Model questions, TOMs schedules, delivery plans and evidence.

Our social value bid writing service can support a live tender or help your team build a more consistent approach across future bids.

If you’re unsure how to interpret the social value requirements in a tender, speak to Thornton & Lowe.

Strengthen your social value response

Get expert support

Related articles...

Made by Statuo