Purpose

Summary

This recommends raising the threshold at which
the 5% social value reinvestment minimum expectation and liquidated
damages clauses are applied, from £100,000 to the current
supplies and services threshold of £214,904 (including VAT).
This change responds to feedback indicating that the current
threshold discourages tender submissions and potentially may
increase costs to the Council.
 
The Social Value Policy, updated on 18 October
2023, allows for adjustments based on stakeholder feedback. With
the new Procurement Act (2023) coming into force in October 2024,
this adjustment is necessary to ensure the effectiveness of the
policy, and to improve supplier participation. Supported by key
stakeholders, this change will be reflected in updated procurement
documents and communicated to relevant parties to ensure a smooth
transition.

Decisions

To increase the threshold at
which the 5% social value reinvestment minimum expectation and
liquidated damages clauses are applied on procured contracts from
£100,000 to £214,904 (including VAT).
To note that the threshold of
£214,904 (including VAT) may be amended from time to time in
accordance with threshold updates in accordance any published
threshold notifications by the UK Government.