As of today, 1 April 2022, NHS England will be extending the reach of its Procurement Policy Note (PPN) 06/20 to the commissioning and purchase of goods and services by NHS organisations, as well as to organisations acting on behalf of such commissioners and purchasers (in scope organisations).
In essence, this means that all procurement undertaken will contribute to the NHS’ Net Zero and Social Value goals. The NHS targets reaching net zero by 2045, and with over 60% of NHS carbon emissions occurring in the supply chain, it’s clear that procurement has a vital role to play. It’s also the NHS’ aim that a focus on social value will help to reduce health inequalities, drive better environmental performance and deliver even more value from procured products and services.
To support this change, NHS England has published the following guidance:
- In scope organisations should review the Social Value model and decide what themes are relevant to the individual tender and/or support local priorities. The Social Value Model theme of ‘Fighting Climate Change’ should be included in all NHS procurement to support the delivery of net zero carbon across the NHS. Other social value themes include wellbeing, equal opportunity, tackling economic inequality and Covid-19 recovery.
- In scope organisations may decide the level of emphasis to be placed on net zero and social value in procurement, but the minimum level of acceptance is 10%. It is important that the threshold adopted and tender process undertaken should not create a barrier for SME and voluntary, community and social enterprises.
- In scope organisations should ensure that appropriate net zero and social value criteria questions are incorporated into the tender documentation to secure flow through to the contract management stage. Clear metrics at tender stage should facilitate this.
- Social value benefit should be delivered over the life of a contract. It is important to ensure that the net zero and social value responses are not already being undertaken by the supplier for the in scope organisation.
As a carbon neutral procurement consultancy that has successfully delivered substantial cost savings and exceeded social value targets for public sector organisations, Barkers are happy to discuss how these changes to the NHS impact in scope organisations. Contact us today for advice and guidance.
Take a look at how we supported Seven Police Force Collaboration to deliver £29.6m of social value over a four year period.