PPN 002: The Complete Guide to Social Value Scoring

Since January 2021, every central government contract awarded in the United Kingdom has been required to include a minimum 10% weighting for social value at the award stage. This mandate was introduced by Procurement Policy Note 06/20 and has been reinforced by the latest Procurement Policy Note 002 (PPN 002), effective from 24 February 2025 under the Procurement Act 2023. The policy applies to all contracts subject to the Public Contracts Regulations and, increasingly, to contracts let by local authorities, NHS trusts, housing associations, and other public bodies that have adopted the same standard voluntarily.

For SMEs bidding on public sector work, understanding PPN 002 is no longer optional. It is a qualification requirement. If your bid does not address social value in a structured, evidenced way, you will lose marks that could be the difference between winning and losing. This guide explains what PPN 002 requires, how the scoring works in practice, what evidence you need, and how to maximise your social value score using the right tools and frameworks.

1. What is PPN 002?

Procurement Policy Note 06/20, published in September 2020 and effective from January 2021, first introduced the Social Value Model for central government procurement. This requirement has been updated by PPN 002 (published in late 2024 and effective from 24 February 2025), which aligns social value scoring with the new Procurement Act 2023. It maintains the requirement for all central government departments and their executive agencies to evaluate social value as a scored criterion at the contract award stage, with a mandatory minimum weighting of 10% of the total award score.

PPN 002 applies to all contracts above the Find a Tender threshold, which is currently set at approximately £139,688 for goods and services and £5,372,609 for works (as of January 2024 thresholds). In practice, many contracting authorities apply the social value requirement to contracts well below these thresholds, and the policy expectation is that all procurements should consider social value where relevant and proportionate.

The policy does not prescribe exactly how social value should be scored. Instead, it provides a framework of policy outcomes, referred to as missions, and directs contracting authorities to select relevant measures from a standardised menu. Bidders must demonstrate how their delivery of the contract will generate additional social value beyond the core contract requirements, aligned to one or more of these missions.

PPN 002 is the current governing document, succeeding the foundational PPN 06/20. While PPN 06/20 established the 10% weighting and the Social Value Model, PPN 002 ensures these requirements are applied consistently under the modernized procurement rules of the 2023 Act. For all tenders issued from 24 February 2025, PPN 002 is the statutory standard you must meet.

2. The five PPN 002 missions

PPN 002 organises social value outcomes into five missions. Each mission represents a policy priority of the UK government. When contracting authorities design their procurement, they select which missions are most relevant to the contract and weight them accordingly. Bidders then propose specific measures against those missions and are scored on the credibility, scale, and evidence of their commitments.

Mission 1: COVID-19 recovery

This mission focuses on helping communities and organisations recover from the economic and social impacts of the pandemic. Relevant measures include creating new jobs or apprenticeships in areas with high unemployment, supporting businesses in affected supply chains, and delivering services that help vulnerable populations access economic opportunities. For example, a facilities management contract might commit to hiring a percentage of staff from communities disproportionately affected by pandemic job losses. Scoring under this mission rewards specific, quantified commitments, not vague aspirational statements.

Mission 2: Levelling Up

Levelling Up is one of the UK government's flagship policy agendas, aimed at reducing regional economic disparities. Under this mission, bidders can score by committing to spend a proportion of their supply chain budget with businesses in disadvantaged areas, by locating contract delivery teams in regions that need economic investment, or by creating training and development opportunities for workers in those communities. A construction firm, for instance, might commit to sourcing 30% of materials from suppliers in the Midlands or North of England. The scoring rewards quantified, geographically specific commitments tied to recognised deprivation indices.

Mission 3: Tackling climate change and reducing waste

This mission aligns with the UK's Net Zero Strategy and broader environmental objectives. Measures under this mission include reducing carbon emissions in contract delivery, transitioning to electric or low-emission vehicles, minimising waste to landfill, adopting circular economy principles, and sourcing sustainable materials. A catering contract might commit to eliminating single-use plastics and reducing food waste by 25% measured against a baseline. An IT services contract might commit to refurbishing and donating decommissioned equipment rather than disposing of it. Scoring is strongest when bidders provide quantified environmental outcomes with clear baselines and measurement methodologies.

Mission 4: Equal opportunity

This mission covers workforce diversity, inclusion, and the reduction of the disability employment gap. Relevant measures include hiring from underrepresented groups, supporting employees with disabilities, offering mentoring and skills development programmes, and creating pathways for people from disadvantaged backgrounds to enter the workforce. A professional services firm might commit to ensuring that 15% of the team delivering the contract comes from ethnic minority backgrounds, supported by specific recruitment partnerships. Scoring rewards commitments that are specific, measurable, and backed by existing organisational policies or track records.

Mission 5: Wellbeing

The wellbeing mission focuses on improving health, community cohesion, and quality of life. Measures include supporting local community organisations, providing mental health and wellbeing support for workers, volunteering commitments, and contributions to community infrastructure. A security services contract might commit to providing each employee with access to a mental health support programme and 16 hours of paid volunteering leave per year. Scoring under this mission rewards commitments that are clearly linked to the contract delivery location and workforce, with defined outcomes rather than general policy statements.

3. The TOMs framework and Oxford proxy values

The National TOMs (Themes, Outcomes, and Measures) framework is the standardised measurement system used to quantify social value in UK public procurement. Developed by the Social Value Portal in collaboration with the Local Government Association and the National Social Value Taskforce, the TOMs framework provides a common language and methodology for measuring social value across contracts.

The framework is structured into themes (aligned to the five PPN 002 missions), outcomes (the desired results within each theme), and measures (the specific activities or commitments that generate those outcomes). Each measure has a defined unit of measurement, for example, the number of apprenticeships created, the number of hours of volunteering delivered, or the tonnes of CO2 emissions avoided.

What makes the TOMs framework powerful for scoring purposes is the use of proxy values from the Oxford Social Value Bank (SVB). The Oxford SVB, maintained by the University of Oxford's Government Outcomes Lab, assigns a monetary proxy value to each measure based on peer-reviewed research and econometric modelling. These proxy values represent the estimated economic and social benefit generated by each unit of a given measure.

For example, the Oxford SVB 2023-24 assigns a proxy value of approximately £56,029 to each apprenticeship created. This figure represents the estimated lifetime economic benefit of an apprenticeship, including increased earnings for the individual, reduced welfare costs, and increased tax revenue. Similarly, each hour of volunteering is assigned a proxy value, each tonne of CO2 avoided has a proxy value, and so on across the full range of measures.

How the social value score is calculated

The total social value score for a bid is calculated by summing the monetary value generated across all selected measures. For each measure, the formula is:

Here is a worked example. Suppose a bidder commits to the following measures as part of a three-year facilities management contract:

This total is then used by the contracting authority as the social value score for the bid. The higher the total, the more points the bidder receives in the social value evaluation. Some authorities normalise scores across bidders (dividing each bid's social value by the highest score submitted), while others use banding thresholds. The ITT will specify the exact scoring methodology.

It is critical that bidders select measures from the TOMs library that are relevant to the contract and credible given their organisational capacity. Selecting measures that generate high proxy values but that the organisation cannot realistically deliver will fail at the evidence stage and may result in post-award compliance issues.

4. The 10% threshold: what it really means

One of the most common misunderstandings about PPN 002 is the nature of the 10% requirement. The 10% figure refers to the minimum weighting that must be allocated to social value in the overall award criteria, it does not mean that a bidder must achieve a minimum score of 10% on their social value response.

In practice, this means that if a contract is evaluated on the basis of 60% quality, 30% price, and 10% social value, a bidder who scores zero on social value could still theoretically win the contract if their quality and price scores are high enough. However, in a competitive tender where multiple bidders score similarly on quality and price, the social value score becomes the deciding factor. A 10% weighting that you maximise while your competitors do not can be the margin of victory.

Many contracting authorities now apply weightings higher than the 10% minimum. Weightings of 15%, 20%, or even 30% for social value are increasingly common, particularly in local government and NHS procurement. Some frameworks, such as the Crown Commercial Services (CCS) frameworks, have moved to standardised weightings of 10-20% across all lots.

Strategies for maximising your social value score

• Select high-proxy-value measures that align with your existing capabilities. Apprenticeships, employment for disadvantaged groups, and local supply chain spending tend to carry the highest proxy values. If your organisation already runs an apprenticeship programme, this is low-hanging fruit.
• Be specific and quantified. A commitment to create 10 apprenticeships scores higher than a statement about supporting workforce development. Numbers matter because they feed directly into the proxy value calculation.
• Match your measures to the buyer's priorities. If the ITT emphasises Mission 2 (Levelling Up), focus your social value response on regional supply chain commitments and local employment rather than generic environmental pledges.
• Demonstrate additionality. Social value measures must be additional to the core contract requirements. If you are already required to hire 50 staff to deliver the contract, those 50 jobs do not count as social value. The social value is in the additional apprenticeships, training, or community benefits beyond the baseline delivery.
• Include a delivery plan. Showing how and when you will deliver each measure, with milestones, responsible owners, and reporting timelines, significantly strengthens your score and differentiates your bid from competitors who offer only headline numbers.

5. Evidence requirements and post-award reporting

PPN 002 is not a box-ticking exercise. Contracting authorities are required to evaluate the credibility of social value commitments at the bid stage and to monitor delivery post-award. This means that the promises you make in your tender must be backed by evidence, both at the point of submission and throughout the contract lifecycle.

At bid stage

Evaluators are looking for evidence that your organisation can credibly deliver the social value measures you have committed to. This includes:

• Track record: Evidence that you have delivered similar social value outcomes on previous contracts. If you are committing to create apprenticeships, evaluators want to see that you have an established apprenticeship programme with named training providers.
• Organisational policies: Relevant policies such as your social value policy, environmental management system (ISO 14001 or equivalent), equality and diversity policy, and modern slavery statement.
• Delivery methodology: A clear explanation of how each measure will be delivered, including timelines, responsible individuals or teams, and dependencies.
• Supply chain engagement: If your commitments involve supply chain partners, evidence that those partners are aware of and committed to delivering their share of the social value targets.

Post-award reporting

Once a contract is awarded, the successful bidder is typically required to report on social value delivery at regular intervals, usually quarterly or six-monthly. Reports must include quantified progress against each committed measure, evidence of delivery (such as apprenticeship enrolment certificates, volunteering logs, carbon audit results), and explanations for any shortfalls against targets.

Many contracting authorities now use digital platforms, such as the Social Value Portal, to collect and verify social value reporting. Failure to deliver committed social value can result in contract management escalation, reduced payments under performance-related clauses, and reputational damage that affects future bids. In serious cases, persistent failure to deliver social value commitments may be treated as a material breach of contract.

Audit risk

The National Audit Office (NAO) and individual contracting authorities have the right to audit social value claims. Bidders should maintain a clear evidence trail for every measure: enrolment records for apprenticeships, timesheets for volunteering, invoices showing local supply chain spend, and emissions calculations with methodology notes. If you cannot evidence it, it did not happen, and your future bids will suffer as a result. Building a clear evidence habit from the start of contract delivery is far easier than attempting to reconstruct records retrospectively.

6. How CrowMark automates PPN 002 scoring

CrowMark is CrowAgent's social value platform, purpose-built for UK public sector suppliers who need to respond to PPN 002 requirements quickly and credibly. The platform automates the most time-consuming parts of the social value response process, from measure selection to narrative generation to evidence tracking.

Automatic mission mapping

When you enter your contract profile, including sector, contract value, geography, and duration - CrowMark automatically maps your contract to the relevant PPN 002 missions using a rules-based engine. The mapping follows the Cabinet Office's own guidance on mission relevance by sector and contract type.

TOMs library with Oxford SVB proxy values

CrowMark includes the full National TOMs measures library with Oxford Social Value Bank 2023-24 proxy values built in. You can browse measures by mission, filter by relevance to your sector, and see the proxy value for each measure before selecting it. The platform calculates your total social value score in real time as you add or adjust measures, so you can optimise your response before submission.

AI narrative generation

Once you have selected your measures and entered your quantities, CrowMark generates a draft social value narrative using Google Gemini. The narrative is structured around each mission, references specific measures and quantities, and is written in the formal tone expected by public sector evaluators. You can review, edit, and refine the narrative before exporting. The AI handles the first draft; your subject matter expertise handles the final polish.

Evidence tracker

CrowMark includes an integrated evidence tracker that lets you log evidence against each committed measure throughout the contract lifecycle. Upload enrolment certificates, volunteering timesheets, emissions calculations, and supply chain spend data directly against the relevant measure. The platform sends monthly email reminders to ensure evidence collection stays on track and generates progress reports that can be submitted directly to contracting authorities.

Under 10 minutes

The entire workflow, from entering your contract profile to exporting a scored social value response with narrative and evidence plan, takes under 10 minutes. For SMEs without a dedicated social value team, this represents a step change from the days or weeks traditionally spent assembling a social value response from scratch.