Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, for what reason the National Procurement Policy Statement exempts the Ministry of Defence defence and security contracts from the priority on delivering social value.

Defence and security contracts under the previous procurement regime were exempt from social value requirements under Procurement Policy Note (PPN) 06/20. This meant contracts let by Central Government Departments, their Executive Agencies and Non-Departmental Public Bodies in scope of the Public Contracts Regulations (2015) only, excluding those covered by the Defence and Security Public Contracts Regulations 2011 (DSPCR).

From 24 February 2025, Procurement Policy Note 002: Taking account of social value in the award of contracts which sets out how to take account of social value in the award of central government contracts, will not be mandated for the Ministry of Defence (MOD) in relation to defence and security contracts as defined by section 7 of the Procurement Act 2023 and exempt procurements.

However, MOD delivery teams will have the flexibility to include Social Value criteria in defence and security or exempt contracts if relevant to the subject matter of the contract, proportionate, fair and non-discriminatory. This will be considered by individual MOD Delivery Teams on a case-by-case basis. All other MOD contracts that are in scope of the Procurement Act 2023 and not classified as a defence and security contract will be required to comply with the National procurement Policy Statement and PPN 002.