How can procurement teams measure the social value delivered by suppliers? - eXceeding
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How can procurement teams measure the social value delivered by suppliers?


By on 8 November 2026

Procurement teams measure supplier social value by agreeing on a small set of quantifiable commitments at tender stage, converting them into contract KPIs using a recognised framework such as the National TOMs, and then collecting evidence from suppliers at regular intervals. The key is to measure delivered outcomes, not promised ones.

Done well, social value procurement links a supplier’s pledges directly to local priorities and the contract’s own performance regime. The sections below explain which metrics to track, how frameworks work, how to write them into contracts, and how to avoid the mistakes that undermine measurement.

Which social value metrics are worth tracking?

The metrics worth tracking are those that are relevant to the contract, measurable with evidence, and aligned with your organisation’s stated priorities. Typical examples include local employment, apprenticeships, spend with local small and medium-sized enterprises and voluntary organisations, community volunteering hours, and carbon reduction.

A useful test is whether a supplier could realistically influence the metric through delivering your contract. A cleaning contract can credibly generate local jobs and training placements, whereas a software licence agreement may be better suited to supply chain and environmental measures.

Most organisations group metrics into themes such as jobs and skills, growth of local supply chains, community resilience, environmental impact and workforce wellbeing. Choose a handful per contract rather than dozens. Fewer, well-defined measures are easier for suppliers to deliver and for your team to verify.

Prefer outputs and outcomes over activity descriptions. “Six local residents hired into permanent roles” is measurable. “Supporting the local community” is not.

How do frameworks like the National TOMs work?

The National Themes, Outcomes and Measures (TOMs) framework is a standardised set of social value measures, grouped under themes and outcomes, that lets buyers set requirements and suppliers commit to quantified deliverables. Each measure has a defined unit and, in many cases, a proxy financial value so contributions can be compared.

In practice, a buyer selects the measures that match local priorities and asks bidders to state what they will deliver against each one. Bids are then scored on the quality and credibility of those commitments, often alongside a social value weighting within the overall evaluation.

The proxy values deserve some care. They are useful for comparing offers and tracking total contribution, but they are estimates rather than audited financial returns. Treat the numbers as a consistent yardstick, and always read them alongside the underlying units, such as number of apprentices or volunteer hours.

Other approaches exist, including bespoke local frameworks and specialist measurement tools. Whichever you use, consistency matters more than the specific model, because it allows you to compare suppliers and track progress over time.

For public bodies in England, the Social Value Model set out in government guidance is a relevant reference point for central government procurement, and many local authorities and housing providers use the TOMs. Check which approach applies to your organisation and the current guidance on GOV.UK. Our overview of social value in procurement explains how these models fit into wider tender design.

How should social value be set up in contracts?

Social value should be written into the contract as defined, measurable obligations with clear baselines, delivery timescales, reporting requirements and consequences for under-delivery. The commitments a supplier made in its tender should become contractual KPIs, not remain as bid narrative.

Include the following in the contract documentation:

  • Specific commitments: the measure, the quantity and the delivery period, for example apprenticeships started by the end of year one.
  • Evidence requirements: what proof the supplier must provide, such as payroll records, training certificates or invoices for local spend.
  • Reporting frequency: aligned to the existing contract review cycle rather than a separate process.
  • Remedies: an agreed recovery plan, and where appropriate a financial adjustment, if commitments are missed.
  • Change control: a route to substitute equivalent measures if circumstances change, so rigidity does not drive poor outcomes.

Proportionality is important. A modest contract does not need a heavy reporting burden, and over-engineering can deter smaller suppliers. Where the Procurement Act 2023 applies, consider how social value requirements and any related KPIs fit with the contract’s performance management and transparency obligations. Our Procurement Act readiness assessment can help organisations check their processes against the new regime.

How can suppliers’ social value claims be verified?

Suppliers’ social value claims are verified by requiring documentary evidence, sampling and cross-checking it, and linking reported figures to records the supplier already holds. Self-reported totals alone are not enough.

Practical verification methods include:

  • Source documents: employment contracts or payroll extracts for local hires, college or training provider confirmation for apprenticeships, and purchase ledgers for local supply chain spend.
  • Third-party confirmation: a letter or email from the charity, school or community group that received volunteering or donations.
  • Definition checks: confirming the activity genuinely meets the measure. A one-off site visit by existing staff is not necessarily a new work placement.
  • Additionality: asking whether the outcome happened because of this contract, rather than being business as usual that is simply being relabelled.
  • Spot audits: periodically testing a sample of reported items in more depth.

Be clear about the evidence required in the tender documents so suppliers can plan to capture it from day one. Retrospective evidence gathering is where most disputes arise.

How often should social value performance be reviewed?

Social value performance should be reviewed at least quarterly for most contracts, alongside the existing service review meetings, with a formal annual assessment against the full set of commitments. High-value or fast-moving contracts may justify monthly checks in the early stages.

Regular review catches shortfalls while there is still time to recover from them. A supplier who has delivered no apprenticeships by month nine of a twelve-month commitment has a problem that should have been raised at month three.

Build social value into the standard agenda rather than creating separate meetings. This signals that it carries the same weight as cost, quality and service levels, and it fits naturally within wider supplier relationship management. At contract end, record what was delivered against what was promised so lessons feed into future tenders.

What are common mistakes when measuring supplier social value?

The most common mistakes are tracking too many measures, accepting unverified self-reporting, setting commitments that are unrelated to the contract, and failing to monitor delivery after award. Each weakens the link between what suppliers promise and what communities actually receive.

  • Overloading the tender: asking for a long list of measures produces generic, copy-and-paste responses that are hard to compare.
  • Treating it as a scoring exercise only: social value that is evaluated at bid stage but never monitored becomes a tick-box requirement.
  • Relying on proxy values alone: headline financial figures can mask thin or low-quality delivery.
  • Ignoring local context: measures that do not reflect the needs of the area deliver less genuine benefit.
  • Vague commitments: without units, timescales and evidence rules, delivery cannot be enforced.
  • Disadvantaging smaller suppliers: disproportionate reporting can exclude the local organisations you may want to attract.

Avoiding these pitfalls generally comes down to preparation: deciding priorities early, keeping measures proportionate, and assigning clear ownership for monitoring.

If you want to embed social value into your tenders and contracts in a way that is measurable and proportionate, eXceeding can help. Our independent consultants support organisations across the public, private and third sectors with tender design and management, including social value measures, evaluation criteria and contract KPIs. To discuss your requirements, get in touch with our team.

Frequently Asked Questions

How do I get started if my organisation has never measured social value before?

Start small: pick two or three priorities that reflect local needs, such as local employment, apprenticeships and spend with local SMEs, and choose a recognised framework like the National TOMs to define the measures. Pilot the approach on one or two upcoming contracts, set clear evidence requirements in the tender documents, and add social value to your existing contract review agenda. Use what you learn from the pilot to refine your approach before rolling it out across your wider portfolio.

What weighting should I give social value in tender evaluation?

There is no single correct figure, as it depends on your policy, the contract type and the guidance that applies to your organisation. Many buyers use a weighting somewhere in the region of 5 to 20 per cent of the overall score, but it should be high enough to influence supplier behaviour without distorting price and quality. Check the current requirements on GOV.UK and your own procurement policy, and make sure the weighting is stated clearly in the tender documents.

What should I do if a supplier is falling behind on its social value commitments?

Raise it as early as possible at the regular contract review and ask the supplier for a written recovery plan with revised dates and named owners. If the shortfall is due to genuine changes in circumstances, use your change control process to agree equivalent measures that still benefit the community. Where the supplier simply fails to deliver, apply the remedies set out in the contract, which may include a financial adjustment, and keep a record of all discussions.

How can I make social value reporting manageable for small suppliers and local organisations?

Keep requirements proportionate to the contract value by limiting the number of measures and providing a simple reporting template, ideally a short spreadsheet or form that matches your contract review cycle. Accept evidence that suppliers already hold, such as payroll extracts or purchase ledgers, rather than asking for bespoke documentation. Briefing suppliers at the start of the contract on what evidence to capture also prevents difficult retrospective collection later.

Can I rely on the proxy financial values in the TOMs to report total social value delivered?

Proxy values are a helpful way to compare bids and summarise overall contribution, but they are estimates rather than audited financial returns. When reporting to boards or the public, show the headline figure alongside the underlying units, such as the number of apprentices, jobs created or volunteer hours delivered. This gives a more honest picture and stops large proxy values from masking low-quality or thin delivery.

How do I check that a supplier's social value outcome is genuinely additional rather than business as usual?

Ask the supplier to show that the activity happened because of your contract, for example a new apprentice recruited specifically to deliver the service or a volunteering programme that did not previously exist. Compare reported items with the supplier’s baseline activity before contract award and challenge anything that looks like relabelled existing work. Spot audits of a sample of reported items are a practical way to test this without checking everything.

What should I record at the end of a contract to improve future procurements?

Record what was promised against what was actually delivered for each measure, along with the evidence quality, any shortfalls and the reasons behind them. Note which measures proved easy or difficult to verify and whether the outcomes matched local priorities. Feeding this into your tender templates and supplier relationship management helps you set more realistic and better-targeted commitments next time.

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