1 Contracts of relevant authorities

(1) If a relevant authority proposes to procure or make arrangements for
procuring the provision of services, or the provision of services together with
the purchase or hire of goods or the carrying out of works, by—

(a) 5entering into a public services contract that is not a contract based on a
framework agreement, or

(b) concluding a framework agreement as regards which public services
contracts are likely to constitute the greater part by value of the
contracts based on the agreement,

10it must comply with the requirements in subsections (3), (6) and (7) before
starting the process of procurement.

(2) The authority is to be treated for the purposes of subsection (1) as having
started the process of procurement as regards what is proposed to be procured
as soon as it takes whichever of the following steps is the first to occur—

(a) 15sending a notice to the Official Journal of the European Union for the
purpose of inviting tenders, requests to be selected to tender or to
negotiate or requests to participate in relation to a public services
contract or framework agreement relating to what is proposed to be
procured;

(b) 20publishing an advertisement seeking offers or expressions of interest in
relation to such a contract or framework agreement;

(c) contacting a person in order to seek an offer or expression of interest in
relation to such a contract or framework agreement;

(d) contacting a person in order to respond to an unsolicited offer or
expression of interest in relation to such a contract or framework
agreement;

(e) entering into such a contract or concluding such a framework
5agreement.

(3) The authority must consider—

(a) how what is proposed to be procured might improve the economic,
social and environmental well-being of the relevant area, and

(b) how, in conducting the process of procurement, it might act with a view
10to securing that improvement.

(4) In subsection (3) “the relevant area” means the area consisting of the area or
areas of the one or more relevant authorities on whose behalf a public services
contract is, or contracts based on a framework agreement are, intended to be
made.

(5) 15For the purposes of subsection (4) the area of a relevant authority is an area
consisting of the area or areas by reference to which the authority primarily
exercises its functions, disregarding any areas outside the United Kingdom.

(6) The authority must consider under subsection (3)(b) only matters that are
relevant to what is proposed to be procured and, in doing so, must consider the
20extent to which it is proportionate in all the circumstances to take those matters
into account.

(7) The authority must consider whether to undertake any consultation as to the
matters that fall to be considered under subsection (3).

(8) If an urgent need to arrange the procurement in question makes it impractical
25to comply with the requirements in subsections (3), (6) and (7) before the time
indicated by subsection (1), a relevant authority may disregard the
requirements to the extent that it is not practical to comply with them.

(9) Subsection (8) does not apply to the extent that the time available is reduced by
undue delay on the part of the authority after this section has come into force.

(10) 30Failure to comply with subsection (1), (3), (6) or (7) does not affect the validity
of anything done in order to comply with the Regulations.

(11) The following are not required to comply with subsections (1), (3), (6) and (7)—

(a) the Welsh Ministers;

(b) the First Minister for Wales;

(c) 35the Counsel General to the Welsh Assembly Government;

(d) the National Assembly for Wales Commission;

(e) a relevant authority whose functions are wholly or mainly Welsh
devolved functions.

(12) For the purposes of subsection (11) a function of a relevant authority is a Welsh
40devolved function if—

(a) provision conferring or imposing that function upon the authority is
within the legislative competence of the National Assembly for Wales,
or

(b) provision conferring or imposing that function upon the authority is
45made by the Welsh Ministers.

(13) This section has effect in relation to a relevant authority’s proposed
procurement or arrangements for procurement only if the public services
contract or framework agreement in contemplation is such that the Regulations
would have effect in relation to it.

(14) 5If anything done before the commencement of this section would to any extent
have satisfied the requirements in subsections (1), (3), (6) and (7) if done after
that commencement, the requirements are to that extent to be treated as
satisfied.

(15) In this section—

• 10“framework agreement” has the same meaning as in the Regulations, and
  a reference to a contract based on a framework agreement is a reference
  to a contract entered into on terms established by such an arrangement;

• “public services contract” has the same meaning as in the Regulations
  (and includes a contract that is treated as being a public services
  15contract by the Regulations);

• “the Regulations” means the Public Contracts Regulations 2006 (S.I. 2006/
  5), or any regulations replacing those regulations, as from time to time
  amended;

• “relevant authority” means a person or body that is a contracting
  20authority for the purposes of the Regulations.

2 Local authority contracts

In section 17 of the Local Government Act 1988 (exclusion of non-commercial
considerations in the case of local and other public authority contracts), after
subsection (10) insert—

“(11) 25This section does not prevent a public authority to which it applies
from exercising any function regulated by this section with reference to
a non-commercial matter to the extent that the authority considers it
necessary or expedient to do so to enable or facilitate compliance with
a duty imposed on it by section 1 of the Public Services (Social Value)
30Act 2011.”

3 Financial provisions

There is to be paid out of money provided by Parliament any expenditure
incurred in consequence of this Act by a Minister of the Crown, government
department or other public authority.

4 35Short title, commencement and extent

(1) This Act may be cited as the Public Services (Social Value) Act 2011.

(2) Section 3 and this section come into force on the day on which this Act is
passed.

(3) Sections 1 and 2 come into force on such day as a Minister of the Crown may
40by order made by statutory instrument appoint.

(4) This Act extends to England and Wales.