Social Value in Irish Public Procurement: Emerging Requirements and Best Practice

Social value in public procurement refers to the wider social, economic and environmental benefits that can be generated through the spending of public money. While not yet mandatory across all contract types in Ireland, Government policy strongly encourages contracting authorities to consider social value. Department of Public Expenditure Circular 10/2010 requires contracting authorities to consider employment and training opportunities when procuring works contracts above certain thresholds.

The CWMF incorporates social clauses into standard public works contracts, typically requiring contractors above defined contract values to make employment and training commitments. These commitments are contract performance conditions — the contractor is obligated to deliver them during contract execution.

Social value measures in Irish public procurement typically focus on: employment and training (apprenticeships, work placements, long-term unemployed hiring targets); supply chain development (sub-contracting commitments to SMEs and social enterprises); community benefits (use of local suppliers, support for community facilities); and environmental sustainability (carbon reduction, waste minimisation, sustainable materials). Contracting authorities should define social value measures that are relevant to the specific contract and the local economy.

Social value that is too remote from the contract subject matter risks challenge as an unlawful award criterion. A construction contract requiring the contractor to make donations to unrelated charities would not meet the 'linked to the subject matter' test under Regulation 67 of S.I. 284/2016.

Social value can be embedded at three stages: in the technical specification (minimum environmental standards, training requirements); as contract performance conditions (targets the contractor must meet during delivery); and as award criteria (evaluated quality aspects of the proposed social value plan). Using all three simultaneously creates the strongest framework.

For below-threshold contracts, contracting authorities have greater flexibility to weight social value in their award criteria, subject to a baseline level of value for money. The OGP guidance is that social criteria should typically be weighted no more than 10–20% of the overall evaluation to avoid undermining price competition.

Social value commitments made at tender stage must be enforceable. Contracting authorities should require contractors to report on social value delivery monthly or quarterly, using defined metrics. Typical KPIs include: number of apprentices employed; number of long-term unemployed hired; value of sub-contracts to SMEs; percentage of materials locally sourced; carbon saved relative to baseline.

At contract completion, the authority should assess whether the committed social value was delivered and document the outcome in the post-project review (CWMF Gate 6). This creates a performance record that can inform future procurement decisions and demonstrate the social return on public investment.