1. PPN 002: what changed and when
The locked wording: PPN 002 (effective 24 February 2025) sets the minimum social value weighting at 10%. PPN 002 supersedes PPN 06/20 for new procurements from that date. It simplifies the routing and locks the 10% minimum floor for in-scope central government contracts.
Both frameworks share the same theoretical foundation: a Social Value Model with five themes and eight policy outcomes, scored using the National TOMs Framework. PPN 002 simplifies the routing and locks the 10% minimum. CrowAgent Core foundations ensure your organisation meets these thresholds through integrated data tracking.
2. The 10% minimum
The 10% figure is the minimum weighting on social value within the overall award criteria. It is a floor, not a ceiling. Buying organisations frequently set higher weightings (15%, 20%, occasionally 25%) where the contract has a clear social-value angle. The Calculator assumes the floor by default and flags the higher cases.
3. The TOMs Framework
TOMs (Themes, Outcomes, Measures) is the de-facto scoring rubric. The National TOMs Framework lists Measures grouped by Outcome and Theme. Each Measure carries a quantifiable indicator (e.g. "Number of FTE local employees hired") and a proxy value.
4. Oxford Social Value Bank (SVB) proxy values
Proxy values are updated annually. The Calculator uses the most recent published Oxford SVB (currently 2023-24 edition). These values provide the mathematical basis for sizing the social value contribution of a bid and are mapped directly into our measuring engines.
5. NPV discount and time horizon
For multi-year contracts, the Calculator discounts forward-year social value cashflows. The locked wording: NPV calculations use the HM Treasury Green Book rate of 3.5%. This is the same rate CrowAgent Core uses for retrofit-NPV; it is the appropriate UK public-sector discount rate.
6. From floor to scoring
The Calculator returns a defensible scoring window. A bid responding to a 10% weighting cannot win on social value alone, but a credible response to the 10% threshold materially improves overall score. The scoring window distinguishes:
- The minimum credible response (matches the floor; defensible).
- The competitive response (clear delivery plan; matches sector norm).
- The differentiated response (additional commitments; market-leading).
7. What the Calculator does not do
It does not write the bid narrative or track post-award delivery. Those capabilities live in CrowMark. The Calculator exists to answer one question fast: what is a defensible 10% response, in pounds, against this contract?
8. References
- Procurement Policy Note 002 (PPN 002), effective 24 February 2025.
- National TOMs Framework.
- Oxford Social Value Bank (SVB).
- HM Treasury, The Green Book.