Page 101 - Social Enterprise A New Business Paradigm for Thailand

includes those serving sentences of less than 12 months, the Ministry of Justice established 21
Community Rehabilitation Companies (CRCs). These CRCs were tasked with managing and

supporting released offenders and worked in partnership with 8 private-sector suppliers. These
service providers operated under the supervision of the HM Prison & Probation Service (HMPPS),
from February 2015 through to 2021–22.

An evaluation report by the National Audit Office (NAO), published on 1 March 2019, concluded
that the quality of probation services delivered under the Transforming Rehabilitation program
did not meet expectations. As a result, the Ministry of Justice decided to terminate the program
in December 2020, a full 14 months ahead of the contractual end date. The report also highlighted
multiple operational issues associated with the CRCs, including underinvestment and a lack of

innovation in service delivery. These shortcomings led to the conclusion that the program did not
deliver value for public money, raising significant concerns about the effectiveness and efficiency
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of the privatized rehabilitation model.

3.2.3 The Public Services (Social Value) Act 2012
In 2012, the United Kingdom enacted the Public Services (Social Value) Act, which came into force
on 31 January 2013. This legislation requires public sector decision-makers responsible for

commissioning public services to consider the economic, social, and environmental benefits that
may result for local citizens and stakeholders, prior to initiating any procurement process for
goods or services. The Act encourages public sector managers to engage with suppliers and local
communities early on, in order to co-design better service solutions and seek innovative
approaches to public challenges.

In 2018, the UK government expanded on this principle by mandating that social value
assessments be included in high-value contracts, and that government agencies report on the
social impact generated through such procurement processes. To support implementation, the
government introduced the Social Value Model, which provides standards and methodologies for

more effective procurement. Rather than selecting vendors based solely on the lowest price, the
model promotes a qualitative evaluation of social impact. Suppliers must demonstrate the quality
of their goods and services, explain how the services will be delivered, and outline how the
procurement will generate positive social value. The model requires that at least 10% of the
evaluation score in any public procurement decision be allocated to social value considerations.

45 National Audit Office (NAO), Report – Value for money, Transforming Rehabilitation: Progress review, Source:
https://www.nao.org.uk/reports/transforming-rehabilitation-progress-review/, 1 March 2019, p. 57.
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