A common practice in government procurement, guided by Philippine procurement laws, is to consider price as the major criterion for awarding government purchases and contracts. However, given the current social climate, there is now a need to consider other factors that enable a product or service to deliver adequate or even added value to both the purchaser and to the community at large.
Thus, we wish to introduce the concept of “social value” as an additional criterion governing Philippine government procurement.
“Social value,” as we define it in this measure, “refers to the additional benefit to, society of procuring a good or service, over and above the direct benefit and value of the good or service to the procuring entity. Additional benefits may include support for poor communities or marginalized groups, advancement of human rights and social justice” protection of the environment, and community development.”
At the root of this concept is the recognition that government funds should be allocated to products, services, and programs that offer the greatest good, at the best value. Therefore, when evaluating suppliers for government purchases, contracts, and projects, purchasers must look beyond price and also consider such factors as quality, production practices, and even the impact that these practices have on a larger community.
Legislature is thus urged to pass this proposed “Social Value Act”. By redefining the concept of “social value” and “value for money,” we can enable the State to maximize benefits for society and also drive up service quality and inclusive growth.