PSO in tenders (social return)
In tenders, clients mainly use the PSO-Prestatieladder (Social Entrepreneurship Performance Ladder) to reduce or waive their social return obligation. Social return (also called SROI, social return on investment) means that you, as the contractor, spend part of the contract value on work for people who are far from the labour market. According to PIANOo , the government’s public procurement expertise centre, this is usually 2 to 5% of the contract value in practice. If you hold a PSO level, many clients count it as (partial) fulfilment.
For what the PSO-Prestatieladder is, read the hub page. For how to calculate your level, see PSO levels and calculation. According to PSO-Nederland , over 200 contracting authorities use the quality mark.
On this page
Minimum requirement, award criterion and percentages.
What is social return?Reduction, exemption or extra points.
The role of the PSOA contract of €800,000 with and without a PSO.
Calculation exampleContracts that only social enterprises may carry out.
PSO 30+How does social return work in a tender?
There is no uniform national policy for social return. Each client decides for itself whether and how to apply it. PIANOo describes three forms.
| Form | How it works | What it means for you |
|---|---|---|
| Minimum requirement (contract condition) | A fixed percentage of the contract value, set out in the contract | You must meet it, or a penalty follows |
| Award criterion | More points for a higher percentage or a better plan | You can stand out from competitors |
| Combination | A minimum plus extra points on top | Both |
The minimum requirement is the most common. PIANOo gives 5% of the contract value as the usual standard. For contracts with many opportunities, such as cleaning, grounds maintenance or catering, it can be higher. For short or highly specialised contracts it is lower, around 1 to 4%. A percentage that is too high is not allowed: social return must be proportionate.
How does the PSO count towards social return?
The rules differ per client and per labour market region. The Netherlands has 35 labour market regions, in which municipalities and UWV (the Employee Insurance Agency) work together. PSO-Nederland keeps a map per region showing how the PSO features in social return policy.
| Application | What it means |
|---|---|
| Reduction of the obligation | A higher level lowers your social return percentage |
| Exemption | At a certain level, your obligation counts as met |
| Award criterion | A PSO level earns points in the assessment |
Besides municipalities, the provinces of Gelderland, Overijssel, Noord-Holland, Utrecht and Noord-Brabant use the PSO, as do various water boards, central government bodies and housing associations. Which level gives which reduction is set out in the tender document or the regional social return policy.
There is no national table of reductions per level. Always read the tender document. If the PSO is not mentioned, ask in the clarification round whether your level counts.
Calculation example: social return with and without PSO
An installer wins a maintenance contract from a municipality worth €800,000 over four years. The municipality applies 5% social return. The reduction with a PSO is an example; each region sets its own rules.
| Without PSO | With a PSO level (example) | |
|---|---|---|
| Contract value | €800,000 | €800,000 |
| Social return percentage | 5% | Reduced or waived under regional policy |
| Social return obligation | €40,000 | Lower or zero |
| What you need to do | Arrange placements, internships or social procurement and account for them per project | Show your level with your PSO certificate |
| Administration | Report per contract to the social return advisor | Keep the certificate valid |
How much a placement is worth (for example, someone on unemployment benefit (WW) employed for a year) is set out in the regional social return rules. A major benefit of the PSO is often the administration. You do not report per contract. Instead, one certificate shows what your company already does.
How do you meet social return without a PSO certificate?
Without a PSO, you meet the social return obligation per contract. Often you can choose from several methods. Which ones count, and how much they are worth, is set out in the regional policy or the tender document.
| Method | Example |
|---|---|
| Hire someone from the target group | Hiring a fitter on social assistance (bijstand) for a year |
| Offer a work placement or internship | Supervising a level 2 BBL trainee (work-based vocational training) |
| Subcontract work to a social enterprise | Having grounds maintenance done by a social workplace |
| Other agreements with the client | Your own action plan that the client approves |
For each contract, you account for what you did. This is often to a social return advisor at the municipality or the employer service point. If you have many contracts at the same time, this administration quickly builds up. A PSO certificate can then save a lot of work.
PSO 30+ and reserved contracts
Under article 2.82 of the Aanbestedingswet (Dutch Public Procurement Act) , a government body may reserve a contract for sheltered workshops and businesses whose main goal is the integration of people with disabilities or people at a disadvantage. The condition is that at least 30% of the employees have a disability or are at a disadvantage.
With a PSO 30+ certificate, you show the quantitative part: at least 30% of your staff come from the target group. You must show the main goal separately, for example in your articles of association. Integration must be the most important goal, not just one of several goals.
Where do you find tenders with social return?
Government contracts are announced on TenderNed, the national platform for tenders. Social return is usually mentioned in the tender document, under the contract conditions or the award criteria. Search the documents for “social return” or “SROI”.
If you work mainly for one municipality or province, also look at its purchasing policy. This often states from which contract value it applies social return and whether it counts the PSO. PSO-Nederland also keeps a list of certified organisations , which is useful if you want to buy socially.
Timing: keep your PSO certificate valid on time
A PSO certificate takes effect on the first day of the month after your final application in MijnPSO, not on the audit date. According to PSO-Nederland, certification after the audit usually takes 2 to 4 weeks to complete. The certificate is valid for two years.
Some clients require your certificate to remain valid without a gap during the contract. Submit your recertification in the month before the end date. The full procedure is on PSO certificate application and costs, and how to renew is on renewing your PSO certificate. To find out whether a client requires the certificate at all, read is the PSO-Prestatieladder mandatory?.
PSO alongside the CO2-Prestatieladder in tenders
Many tenders combine sustainability and social return. The CO2-Prestatieladder works with a notional award advantage on your tender price. The PSO usually works through your social return obligation. Companies in construction and infrastructure therefore often hold both, sometimes supplemented by the Veiligheidsladder.
Common mistakes with PSO and social return
Assuming every client accepts the PSO. Policy differs by region and by client. Check it for each tender.
Applying too late. Planning, carrying out and completing an audit takes weeks. Start well before the submission deadline.
Arranging social return only after award. With a minimum requirement, you sign up to it in the contract. If you do not meet it, a penalty follows. According to PIANOo, a client can even exclude you from a future tender.
Overestimating Aspirant status. Aspirant status is an intention, not a level. Check the tender document to see whether the client counts it too.
Further reading
- What is the PSO-Prestatieladder? - The quality mark in brief
- PSO levels and calculation - Where do you stand?
- Tender advantage with the CO2-Prestatieladder - The other ladder used in tenders