b"million (inclusive ofA further new limb is VAT) to set andintroduced whereby publish at least threesuppliers may be KPIs, and to ensureexcluded where:that they monitor (at least annually) thea) they have not three KPIs consideredperformed a contract most material to theto a contracting performance of theauthority's contract obligationssatisfaction;(and a description of those KPIs must beb) they have been included in thegiven the opportunity contract detailsby the contracting notice). Historically, social value hasauthority to improve In respect of thoseoften been overlooked duringperformance, and three KPIs, the Actcontract management and thec) they have failed to also requirescommercial lifecycle, and theredo so (and there is a contracting authoritiescommensurate to publish a contractare many examples of publicimplied right to performance noticecontracts where the socialterminate public (again, at least oncontracts in the same annual basis),value proposals have not beenscenario).identifying the extentdelivered. to which those KPIsIn light of the above, have been achieved.even where the In addition to the requirement to monitor anddelivery of social value outcomes or outputs is report on those three KPIs, the Governmenteither not measured via a KPI or the social Guidance on Key Performance Indicatorsvalue KPI is not considered to be the most makes it clear that where more than threematerial to the performance of the contract KPIs are set, all of those KPIs must beobligations (and is not, therefore, included as published. In practice, this will likely bepart of the annual monitoring noted above), achieved via the publication of the contract inthere remains a possibility for exclusion on line with section 53(3) of the Act.future contracts where there is significant or repeated non-performance against agreed/Additionally, even where the social value KPIpromised social value requirements.is not included as one of the three to beBidders should therefore be mindful as to what monitored and reported on, contractors shouldthey have set out in their tender proposals and still be mindful of the wider obligations underensure that they include attainable social the Act regarding contract management,value commitments that they will be able to performance and potential terminationdeliver throughout the life of ensuing public grounds. contracts. Termination and exclusion Contract management considerations Additionally, the Act provides a discretionaryAs noted above, social value is exclusion ground where a bidder hasincreasingly playing a major role in demonstrated poor prior performance under atender exercises, carrying previous public contract. Under the Act, aincreased weighting as part bidder may be excluded where they haveof the evaluation criteria, breached an earlier public contract, and theoften now upwards of breach was sufficiently serious.10% of the overall Whether a breach is sufficiently seriousweighting includes the familiar approach under the(certainly, Public Contracts Regulations 2015 regardingProcurement Policy termination and/or damages, but also explicitlyNote 002 requires that a brings in scope contracts which have beenminimum weighting of 10% ended pursuant to a settlement agreement.of the total score should relate to the social value award criterion in 13"