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PSO Performance LadderIs the PSO mandatory?

Is the PSO Performance Ladder mandatory?

No. The PSO certificate is a voluntary recognition. You apply for it from PSO-Nederland via MijnPSO, and a certification body checks whether you earn it. The certificate is not mandatory in general. It only becomes a requirement when a client writes it into a tender. A client can then require you to deliver social return, and name the PSO certificate as a way to meet that requirement. This follows from the documents of that specific tender, not from the manual. The PIANOo overview on social return  (PIANOo, the Dutch public procurement expertise centre) shows that a client can encourage or require social contribution, and leaves the form open. More about the social return requirement is on PSO in tenders. For what a certificate costs, see applying for a PSO certificate and costs.

PSO-Nederland  writes that many (semi-)public clients use the quality mark as a social procurement tool, and that the rules differ per labour market region. That makes the question practical: the PSO is mandatory for you if you want to win a contract for which the client requires the certificate. If the client only awards points for it, it is an advantage and not an obligation. Otherwise, it is a choice.

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What is and is not mandatory

SituationMandatory?What it means
You simply want to show your social impactNoYou can use the calculation tool for free to work out your level. See levels and calculation.
A tender requires social return as a conditionDepends on the tenderYou can meet the condition without PSO, or use the PSO if the client allows it
A tender awards points for social returnNoA PSO level can earn you points, but it is not a hard requirement
A client explicitly requires a PSO certificateYes, for that contractWithout a certificate, you do not meet the requirement

The PSO manual from TNO contains the rules for the recognition itself. It says nothing about whether a client may require or value the certificate. That is up to the client.

The certificate costs an annual fee and an audit. Only apply for a certificate when you need it for a specific tender, or if you want it as a strategic quality mark.

How to check a tender

Read the tender documents, not just the summary. Search for the following words and note the text you find:

  1. “PSO” and “PSO-certificaat”. If they do not appear, the PSO is not mentioned in this tender.
  2. “social return”. Check whether it is a minimum requirement or an award criterion.
  3. The percentage. This is often a share of the contract value, but it differs per tender.
  4. The request for evidence. The documents often state how long you have to supply the evidence after it is requested. Note that deadline.
  5. Any discount or exemption. Some clients link a level to a discount on the social return obligation. That link is set out in the tender, not in the manual.
Term in the tenderWhat it usually meansAction
Minimum social return requirementYou must deliver it, otherwise a penalty followsInclude the costs in your quote
Award criterion for social returnYou get points for doing moreConsider whether the PSO level makes the difference
PSO as a requirementThe certificate is mandatory for the contractRequest quotes for an audit in good time

What you can ask the client

If you are unsure whether a PSO certificate counts in a tender, ask the contracting authority in writing, within the deadline for questions. An answer from the client carries more weight than your own reading of the documents. For example, ask these questions:

  1. Is social return in this contract a minimum requirement or an award criterion, and what percentage applies?
  2. Can we meet the social return requirement with a PSO certificate? If so, which level counts, and how much discount or exemption does that give?
  3. Must the certificate be attached to the bid, or is it enough to supply it within a period after it is requested?
  4. How is the validity of the certificate checked if it expires during the contract term?

You can include the answers in your quote. That way you avoid finding out afterwards that a requirement does not count.

Example: two tenders side by side

Suppose a construction company sees two tenders: one from a municipality and one from a housing association (woningcorporatie). The company has a level 2 certificate. The examples are fictional, but they show how the differences play out.

ItemMunicipality (fictional)Housing association (fictional)
Social returnMinimum requirement of a fixed percentage of the contract valueAward criterion with points
Role of the PSONamed as a possible way to meet the requirementExtra points for a level
Action for the companyAsk whether the certificate counts as a way to meet it, and at what discountInclude the points in the score
RiskWithout confirmation, the requirement may still be rejectedThe difference in points is small if the rest of the quote is weak

The difference lies in how the client weighs social contribution. That is why the check should be done for each tender, and not once a year.

What if you do not have one

If you do not have a PSO certificate, you still have options. You can meet the social return yourself, for example by hiring people from the target group or by buying from a social enterprise. That approach is covered on PSO in tenders.

If you do want the certificate, start by working out your level in the free calculation tool. Only then plan the audit. The full application process is on applying for a PSO certificate and costs. An application submitted too late often does not arrive in time for a tender deadline.