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Public Services (Social Value) Act 2012

Nathan Holden, Partner24 April 2013

History

Private Member’s Bill – Public Services (Social Enterprises and Social Value) Bill – introduced by Chris White, MP for Warwick and Leamington (C) in June 2010

Aimed to strengthen the social enterprise business sector and make the concept of “social value” more relevant and important in the placement and provision of public services. National social enterprise strategy provisions were withdrawn.

Royal assent on 8 March 2012

Fully in force from 31 January 2013 (ss 1 & 2: Commencement Order: SI 3173 of 2012)

Applies to:

Contracting authorities in England and, to a limited extent, in Wales

Public services contracts

Framework agreements where the greater part of the value is likely to relate to public service contracts

**Notes:• Applies to “relevant authorities “ which are contracting authorities for the purpose

of the Public Contracts Regulations 2006• “Public services contracts”: the term has the same meaning as in the Public

Contracts Regulations 2006• S1(13) of the PS(SV) Act limits application of s1 of that Act to public services

contracts and framework agreements in relation to which the Regulations would have effect

• S1(1)(a)PS(SV) Act excepts from the definition of “public services contracts” contracts which are awarded under the terms of a framework agreement

What must a contracting authority do?Before starting the process of procurement for public services contracts and relevant framework agreements the authority must consider:

how, what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area; and

how, in conducting the process of procurement, it might act with a view to securing that improvement; and

whether to undertake any consultation on these two issues.

When does the process of procurement start?The contracting authority is considered as having started the process of procurement as soon as it takes the following steps (whichever occurs first)

Despatch of a contract notice to the OJEU

Publication of an advertisement seeking offers or expressions of interest

Contacting a person in order to seek an offer or expression of interest

Contacting a person in order to respond to an unsolicited offer or expression of interest

Entering into a contract or conducting a framework agreement

What is the “relevant area”?

Area/s where the authority/ies on whose behalf the contract/framework agreement is intended to be made primarily exercise its/their functions (disregarding any areas outside the UK)

Considering how to conduct the processWhen considering how to conduct the process the contracting authority:

may only consider matters that are relevant to what is proposed to be procured; and

must consider the extent to which it is proportionate in all circumstances to take those matters into account.

Implications for RPsTwo sides of the coin:

In your capacity as procurers of services In your capacity as providers of services

{picture of a coin}

Thank you

Nathan HoldenPartner

nathan.holden@freethcartwright.co.uk

www.freethcartwright.co.uk

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