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Procurement Act 2023 — Social Value & KPIs
The Act formalises the role of social value in UK procurement and introduces mandatory KPI publication for contracts above £5m. What contracting authorities now have to publish, and what suppliers need to commit to.
Closing this fortnight
Social value remains a permitted (not mandated) evaluation criterion under the Procurement Act 2023, consistent with the Social Value Act 2012 and the Public Procurement Notice 06/20 weighting of 10% minimum on most central government contracts.
The Act adds two new mechanisms: (1) social-value commitments can be enforceable contract terms, with reporting requirements; (2) the new Contract Performance Notice for >£5m contracts must include any social-value KPIs the supplier committed to.
Contracting authorities must publish:
Three practical implications:
Per Public Procurement Notice 06/20, a 10% minimum weighting on social value remains in place for most central government procurements. The Procurement Act 2023 doesn't override this — it formalises social value as a permitted evaluation criterion and adds reporting requirements for committed social-value outcomes.
No — mandatory KPI publication only applies to contracts above £5m awarded after 24 February 2025. Below £5m, KPI publication is optional but encouraged.
They can be the same, or different. KPIs published under the Act are the metrics the buyer wants tracked publicly; SLAs are the contractually-binding service levels in the contract terms. Many buyers align the two so the published KPIs are the contractual SLAs.
Depends on contract terms — could be financial penalty, service credit, or termination. Beyond the contract: poor KPI performance becomes public record and may be cited as past-performance evidence (an exclusion ground) in future procurements.
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