The Public Services (Social Value) Act 2012 (the Act) came into
force on 31 January 2013 and applies to all services procured under
the Public Contracts Regulations 2006. This article considers the
new obligations the Act imposes on contracting authorities and
highlights the opportunity created by the change in the law. New
obligations
The Act affects both part A and part B services, to the extent
those distinctions continue to exist, and procurements
incorporating services alongside either goods or works elements are
also affected. The Act does not apply to goods or works contracts
with no services aspect.
The Act introduces an obligation on contracting authorities to
consider ways in which services they are procuring may improve the
economic, social and environmental wellbeing of the relevant area.
The relevant area is defined as the area or areas for whose benefit
the contracting authority is procuring the services. In cases where
contracting authorities are