Inspiring and Creating Social Value in Croydon: A Social Value ...

Inspiring and Creating Social Value in Croydon A Social Value Toolkit for Commissioners

Inspiring and Creating Social Value in Croydon

A Social Value Toolkit for Commissioners

Contents

4. Case Studies 3

1.CCURVESkillsandEmploymentGroup 2.GrampianHousingAssociationandSolsticeNurseries 3.LiverpoolCityCouncilandBulkyBobs 4.WakefieldMetropolitanBoroughCouncil 5.CamdenCouncilandMentalHealthDayServices 6.TheDevonSustainabilityMatrix 7.CumbriaCountyCouncil 8.RaplochURC 9.GlasgowHousingAuthority 10.IslingtonBSF

Page 33 Page 36 Page 38 Page 40 Page 42 Page 45 Page 49 Page 52 Page 55 Page 58

1. Introduction Page 4

• Whatisthistoolkitfor? • Whatissocialvalueandsocialbenefit? • Whatdoesthislooklike? • Whydoitandwhen? • WhyisCroydonCouncildoingthis?

Page 5 Page 5 Page 5 Page 6 Page 6

2. Think and rethink what you are commissioning Page 11

• Theapproachtocommissioning • Thecategorycycle • Workingtogetheroncategorymanagement

Page 11 Page 12 Page 13

3. The Procurement Steps to Achieving good quality social benefits Page 17

• Route1:AwardCriteriaMethodology • Route2:PerformanceObligationsMethodology

Page 21 Page 27

Contents | 3


Introduction

What is this toolkit for?

Thistoolkitisentitled‘InspiringandCreating SocialValueinCroydon’andthisisexactly whatweintendtodo.Itshouldbetakenas theclearestpossibleindicationthatCroydon Counciliscommittedtomaximisingthesocial value,orsocialbenefitavailablefromits commissioningandprocurementactivities.

InourCommissioningStrategy2012-15weset outtheresponsibilitywesharewithallpublic servicestoconstantlyfindmoreeffectiveways ofmakingpublicmoneydeliverbetteroutcomes andtoimproveoutcomesinthemostefficient, effective,equitableandsustainableway.There hasneverbeenamoreimportanttimethanin thecurrentchallengingeconomicandsocial climatetomakesurewetietogetherthe opportunitiestheCouncil,businessandthethird sectorshaveforworkingtogethertothatend.

Commissioningistheprocessfordecidinghow tousethetotalresourcesavailableinorder tomeetthatchallenge.AsCroydonCouncil movestowardsbecominga‘commissioning-led’authority,commissioningistakingupits placeastheprimemeansofdeliveringonthe aspirationsoftheCouncilandthecommunity.

TheStrongerCommunitiesStrategy(2011-15) setsouthowwearecontinuingtobuild‘strong andactivecommunities’.Itstatesthatthereare ‘opportunitiestodoevenmoretoencourage anevenstrongercommunitytoflourish’and recognisestheimpactthatcommissioningcan haveinachievingthisaim.

Commissioning,andparticularlythe procurementprocess,hasnottraditionally beenseenasaninherentlycreativecycleof activity.Thistoolkitchallengesthatperception, offeringawayforwardforcommissioningand procurementasatooltoinspirenewthinking, toharnessco-creationandtodeliveradditional socialvalueinallwedo.

Thistoolkithasbeencreatedtosupport CroydonCouncilandpotentialprovidersof services,inanysector–includingsmallto mediumenterprises,socialenterprisesand voluntarysectororganisations-toembedsocial valuethroughprocurementprocesses.

Thetoolkitprovidesguidanceparticularlyto servicecommissioners,categorymanagers, procurementofficersandthoseadvisingthem onlegalissuesonhowwecanderivesocial valuefromprocurementactivity.Itsetsout differentoptionsavailabletocommissionersso theycanestablishwhat’srightforthem.

Thisdocumentwillprovideyouwithadviceon theprocessandbestpracticeprincipleswhen tryingtoleveringreatersocialvalue.Dueto thewiderangeofservicesprovidedbythe Councilthereisno‘onesizefitsall’modeland, assuch,thisdocumentshouldbeconsidered alongsideadvicefromtheCommissioningand Procurement,Legal,CommunicationsandHR teamstoensurespecificserviceordepartmental needsarefullyconsidered.

Thereisalsoastep-by-stepAwardCriteria methodologytofollowthroughfrompre-procurementstagestoContractManagement.

Theemphasisinthistoolkitisonthepractical.It aimstoprovideanswerstothequestionsabout whereandwhenwecanlookforopportunities, atwhatpointsintheprocess,toquestions aboutwhatwordingtoincludeandthelegaland fairnessquestionsthatcanariseandoftenwork againstdoinganythingdifferent.

Thewaywedothisisbyshowinghowthis hasworkedinpracticethrough10case studies.Manyoftheseinvolvethirdsector organisations,includingsocialenterprises andalloftheminvolvebuildingarelationship betweencommissionerandpotentialprovider andcreatingaconnectionwiththecustomer.

4 | Introduction

http://www.croydon.gov.uk/contents/departments/community/pdf/cscs



What is social value?

Forthepurposeofthistoolkitwehaveused thedefinitionofsocialvalueascreatedbyThe SustainableProcurementTaskForceandwidely usedinScotland,WalesandEngland.Theydefine itas,‘aprocesswherebyorganisationsmeettheir needsforgoods,services,worksandutilities inawaythatachievesvalueformoneyona wholelifebasisintermsofgeneratingbenefits tosocietyandtheeconomy,whilstminimising damagetotheenvironment’.

‘Thinkingsocialvalue’shouldshiftthefocusfrom thebottom-linepriceorcostofaservicetowards theoverallvalueoftheoutcomesdelivered. Howaserviceisdeliveredistakenintoaccount alongwithwhatisdelivered.Thirdsector organisations,charitiesandsocialenterprises oftenhaveelementsofasocialvaluehard-wired inthem,and,asthecasestudiesshow,thishard-wiringcangivethemacompetitiveadvantage overprivatesectororganisationswhenitcomes toassessingtheoverallqualityofthebidwhenit takesaccountofsocialvalue.

What is social benefit? Socialbenefitistheoutcomeofthisprocess ofachievingsocialvalue.Itcanmeansomany differentthingstosomanydifferentpeople.As alocalauthorityCroydonmakesdecisionson socialbenefiteverysingleday.Decisionsabout commissioningaparticularservice,orfunding aprojectinaparticularareafocusingona particularneedorrequirementintheCouncil areacanallcreateanddeliveranadditional socialbenefit.

Theseadditionalbenefitscantakealmostany form,rangingfromtheverytangible,suchasjobs forthelong-termunemployed,orsub-contracting opportunitiesforsmallbusinesses,tosofter,but equallyimportant,benefitssuchasengagement withcommunitiesorgroupsofindividualswho mightotherwisefeelentirelydisengaged.Doing soalsosupportstheCouncil’spublicsector equalityanddiversityduties.Definingsocial benefitislessimportantthansecuringit.

What does it look like in practice? Youcanusesocialbenefitstobringlong-term goodtotheBoroughby:

• Creatingskillsandtrainingopportunities(e.g. apprenticeshipsoronthejobtraining);

• Creatingemploymentopportunitiesforthe long-termunemployedorNEETs(thosenotin education,employmentortraining);

• Offeringworkplacementstoschoolchildren andyoungadults;

• Providingcareeradviceandinformationfor youngpeopleonspecificcareers,suchas construction,architectureorengineering;

• Offeringcurriculumsupporttoschools,with contractorssharingknowledgeandexpertise abouttheirdiscipline;

• Providingadditionalopportunitiesfor individualsorgroupsfacinggreatersocial oreconomicbarriers.

• CreatingsupplychainopportunitiesforSMEs andsocialenterprises;

• Creatingopportunitiestodevelopthird sector organisations.

• Improvingmarketdiversity;

• Encouragingcommunityengagement;

Introduction | 5


• Supportinginitiativesliketargetinghardto reachgroups;

• Makingfacilities(suchasschoollibraries, leisurefacilitiesorcomputers)available totargetedgroupsthatotherwisewould struggletoaccesssuchfacilities;and

• Encouragingethicalandfairtradepurchasing

Why do it, and when?

Becauseit’snothard…andbecausetheoutcomes areworthit!It’seasytodismisssocialvalue procurementasbeinginthe‘toodifficult’ category,butitcanmakeagreatdifferenceto people,servicedeliveryandthebottomline.

Requiringcontractorstodeliversocialbenefits whiletheydeliverthemainelementoftheir contractmeansthatCroydonbenefits.Weget more,bothdirectlyandindirectly,forourmoney.

Beingsuccessfulatgettingthebestsocialvalue fromcommissioningandprocurementisawayof workingthatneedstobeadoptedandlearned. Itispartoftheskill-setandknowledgesetthat weidentifyasbeingpartoftheCroydon‘expert commissioner’competencies.TheCabinet Officereferstheseas‘idealcommissioner’ competencies.

Asyouworkthroughthistoolkityoushould identifyoneconsistentmessage–inorderto successfullysecuresocialvalueandbenefit throughyourcommissioningandprocurement processes,youneedtothinkaboutitfromthe outsetandembedaclearandunambiguous messageaboutyourintentiontodosoevery timeyoucommunicatewiththemarket.

Thereshouldbeabsolutelynodoubt,internally orexternally,thatoneofthecoreobjectives ofthecommissioningorprocurementexercise istodeliverthegreatestsocialreturnfromthe investmentpossible.

Why is Croydon Council doing this?

> This is important to us

AswesayinourCommissioningStrategy, effectivecommissioningisimportantbecause around£340m(or34%oftotalbudget)is spentexternallyeachyearcommissioningand procuringgoodsandservicesfromthirdparties. Around5%ofthatamountisspentwiththethird sector.Gettingcommissioningright,therefore,is importantinordertoensurethatwecontinueto delivertherightservices,tothepeoplethatneed themmostanddeliverthegreatestimpact.

> We need to get the best value from our purchasing

Croydonhasalwayspunchedaboveitsweight. Asaleadingedgeorganisation,theCouncilhas alreadytakendifficultdecisionsbuthasprotected servicesthroughanambitiousprogramme ofunprecedentedchangetoensureCroydon succeedsinaneweconomicclimate.Inthelast 12months,theCouncilhasmade£30millionin savings-twothirdsofthishasbeenachieved throughefficiencies.

Tomeetthechallengesahead,theCouncilmust transformasanorganisationandpursuenew, andpotentiallyradical,solutionstomakepublic moneydeliverevenbetteroutcomes.Thistoolkit isakeypartofthatstrategy,andwillensure processesareformalisedwithintheCouncil sothatsociallyresponsibleandsocialvalue procurementtakesplace.

6 | Introduction


TheCouncilaimstoensureaconsistentapproach tocommissioningdevelopsacrosstheBorough. Wewillworkwithpartners,includingproviders inallsectorsandusersofservices,toensurethat ‘expertcommissioning’behavioursareadopted widelyandmodelledinordertosecurebetter outcomesforthepeopleofCroydon

> Social Value policy and legislation

Thelawhaschangedandthereisnowan additionaldutyonustodothis.Weare incentivisedtosecuregreatersocialvalueby recentlegislativeactivity.ThePublicServices (SocialValue)Act2012cameintoforceearlier thisyear.Publicauthoritiesarenowrequiredto ‘consider,priortoundertakingtheprocurement process,howanyservicesprocured(whether coveredbythePublicContractsRegulations2006 orotherwise)mightimproveeconomic,social andenvironmentalwell-being.’

TheCouncilismakingsignificantcapital investmentininfrastructureandregeneration in2012/13:£73misestimatedtobespenton improvingassetssuchaseducationbuildings; £27mwillbespentonimprovingplaces,including highwaysand£8mistobespentontransforming ourICTandbuildings.

The Equality Act 2010bringsnewstatutory dutiestoCouncils.Intheexerciseofits functions,theLocalAuthoritymust‘have dueregardtotheneedto:advanceequality ofopportunitybetweenpeoplewhosharea protectedcharacteristicandthosewhodonot; eliminateunlawfuldiscrimination,harassment andvictimisationandotherconductprohibited bytheActandfostergoodrelationsbetween peoplewhoshareaprotectedcharacteristicand thosewhodonot.TheCouncilmust,therefore, notseektojustassesstheimplicationsofall commissioningdecisionsincommissioning regardingtherisktogroupsofpeoplebutmust lookforopportunities,suchassocialvalue,to advanceopportunitiestothosepeople.

> We want to help Third Sector to thrive and to do more

TheGovernment’sOpenPublicServicesWhite Paperproposesreformsthatwillallownon-publicproviderstorunschoolsandotherpublic services.Thisincludesthethirdsectorandsmall tomedium-sizedenterprises(SMEs).Thethird sectorcanplayapowerfulroleintransforming theservicelandscapebringinginnovation,value formoneyandinherentsocialbenefits.

WellbeingRegeneration,Carmarthenshire, describedonpage14,isonesuchexample.What startedasaresponsetoalackofaffordable footcarehasburgeonedintoathrivingsocial enterprise,identifyingandrespondingtoarange ofcommunityhealthandsocialneeds.Inthe casestudies,Mid-DevonCommunityRecycling (MDCR)onpage45alsodemonstratesthe capacityofthethirdsectortoinnovate.MDCR approachedthecounciltostartakerbrecycling schemewithagroupofvolunteerstoshowthat itcouldbedone.

AsMDCRgrewtheyalsodemonstratedthat itwaspossibletodelivertheserviceinaway thatcreatedopportunitiesforthelong-term unemployedandusedsustainabletransport.

TheSocialValueActisnon-prescriptive,and theextenttowhichisittakenintoaccountwill probablyvaryfromcounciltocouncil.Ithasbeen arguedthattheActwillberelativelyeasyto circumvent.CroydonCouncilwantstoembrace socialvalueand,therefore,willensuresocial valueisnotanother‘legislativehoop’forthe Counciltojumpthrough.

Introduction | 7


TheCouncilexplicitlyacknowledgesthe‘value-driven’natureofmostthirdsectororganisations, whichoftenrepresentsits‘uniquesellingpoint’. Thismeanstheyaremotivatedbythedesire toachievesocialgoals(forexample,improving publicwelfare,theenvironmentoreconomic well-being)ratherthanthedesiretodistribute profitandwillreinvestanysurplusesgenerated inthepursuitoftheirgoals.Forthisreason thirdsectororganisationsaresometimes called‘not-for-profitorganisations’,although inmanycasesthirdsectororganisationsneed tomakesurpluses(or‘profits’)tobefinancially sustainable.

Someofthekeybenefitsofthirdsector organisationsinclude:

• Thesocialcapitalgeneratedthroughtheuse ofvolunteering

• Localrootsinthecommunityandthe communityprideandpersonalself-worththat canbegenerated

• Accesstowidersocialcapital(e.g.community socialnetworks)

• Otherfundingleverage(e.g.matchedfunding fromcommunitypots)

• Theopportunityforcommunity-leddesignand co-productionpractices

• Thecontributiontothelocaleconomy thatputtingfundingintothevoluntaryand communitysectorcanbring

Helpingthethirdsector‘thriveanddomore’ meansincludingthesectorinallmainstream commissioningandensuringthirdsector organisationsallhaveameansofdemonstrating thesocialvalueoftheworkthoseorganisations do-howthesocialgoodstheyproduceoffer measurablesocialvalue,whichwillstrengthen theirbusinesscase.

Section3ofthistoolkitmakesexplicitthe commitmentCroydonCouncilwillmaketo integratingsocialvaluewithinthescoring systemofawardevaluationandunderwhat circumstancesamoreopendialoguewillbe appropriate.

> We have made a commitment to Corporate Social Responsibility

Wehavealreadymadeacommitmentto aCorporateSocialResponsibility(CSR) programme.CSRrepresentsapotentialtoolfor ustofacilitateinvestmentinlocalcommunities throughourmajorproviders.Thetoolkitwill enableustoincludeactionssuchasproviding workexperienceforlocalunemployedpeople

whendeliveringservicesorbuildingcapacityin localthirdsectororganisations.

Thistoolkitissupportedbyspecificguidance publishedbyCroydon’sWorkforceand CommunityRelationsdirectorate(Commissioning andProcurementPolicyforJobsandSkills)

> We want to deliver sustainable outcomes and meet community needs

Thetoolkitwillhelpusfurtheroursustainable procurementobjectives,whichmeanswecan meettheneedsforgoods,services,worksand utilities in a waythatachievesvalueformoneyona wholelifebasis.

Wewanttomeetthecommunityneedsandso wewanttoincreasethechancesoflocalpeople benefitingfromregenerationprogrammes.The toolkitwillhelpustoincreaseopportunitiesfor apprenticeshipsandlocallabour.

Wewanttomeasuresocialimpact–theactual effectofouractivitiesonthelocalcommunity andwell-beingofindividualsandfamilies. Thiswillbemeasured,forexample,interms ofchangesinlevelsofemployment,health, education,economicregenerationandsoon.

8 | Introduction

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Think again

GMProcurehasatargetof 52weeksemploymentforanewtrainee

foreach£1mincontractlabourcostonDecent Homesstandardframeworkcontracts,andis ontargettoachievethisinthesecondyearof contractdelivery equivalenttoabout10%

ofthetotallabourrequirement

AtKingscrossCentral,a twelve-yearmixedcommercialand

residentialdevelopment,thedeveloperhas acceptedaPlanningAgreementrequirementthat 7.5%ofthetotalconstructionlabourrequirement willbedeliveredbynewtraineesrecruited

fromanamedsource Providingopportunitiesfor

targetgroups NEETS,BMEgroups, excludedgroups,hardtoreachgroups, formergangmembers,returntowork

candidates,exoffenders

Provideplacementsfor universitystudents

Providingopportunities forNEETS youngpeopleNOTin employmentTrainingEducation

InIslingtonBSFSchoolsthe DesignandBuildcontractoris contractedtoengagenearly 100apprenticesoverthefive

yearprogramme

InSheffieldtheHousing ALMOisontarget,over7years,to deliverandexpectedtotaloutputof 1500localjobs/trainingplaces

Provideguaranteed interviewsfortargetgroups e.g. longtermunemployed,schoolpupils,

returningtoworkadults Provideopportunities forsocialenterprisestobecome partofthesupplychain

Providemeasurable improvementsofupscaling

inworkforce

Introduction | 9

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Think again

Intheearly1990’sat WalthamForestHousingAction

Trust20%oftheperson-weeksrequired todelivernewbuildsocialhousingwas beingdeliveredbynewtraineesrecruited fromtheEstatewheretheworks

werecarriedout

BetweenMay2008andJune 2009theOlympicDeliveryAuthority

filledover500jobsbylinkinglocalbrokerage withODAContractors.Thebrokeragegives localpeople48hourtoaccessjobsbefore theyareadvertisedmorewidely Astudyoffiveconstruction

projectsinnortheastEnglandthat usedcontractualleverageidentifiedan averageofonenewtraineeper£750,000

onconstructionspend

Provideworkexperience fortargetgroups

Provideopportunitiesto becomepartofthesupplychain

Oneducationalprojects: provideinputtocurriculumdevelopment

throughsupportlearningin keytopicareas

InEastLondonRailProject nearlyonethirdofthesuppliers tothemainJVcontractorare

local target areas

Uptakeofapprenticeships

Achievehighscores onConsiderateContractor

Scheme

Runworkshopsfortarget groupsonkeyareasofskill sustainability,designetc

10 | 2.Thinkandrethinkwhatyouarecommissioning


2. Think and rethink what you are commissioning

The approach to commissioning

IntheCommissioningStrategywerefertothe ‘categorywheel’(overleaf)todescribethe stagesinvolvedincommissioningandcategory management.

Anexpertcommissioner:

• Reviewsthestrengthsandperformanceof currentproviders;

TheWhitePaperonOpenPublicServices, launchedinJuly2011,supportsour‘thinklocal’ objectives.Thepaperhasfivemainobjectives:

1

Think and rethink what you are commissioning

2

Choose your procurement route

• Understandscurrentneeds,prioritiesand markets;

• Challengesexisting,andreviewsalternative servicedeliverymodels;and

• Focusesonoutcomes

Todeliverrealsocialbenefitanexpert commissionermustthinkdifferently.That meansinterrogating‘whatwehavealways done’,‘whatwearedoing’andasking‘how couldwedoitbetter?’Itmaywellbethatthe providerwehaveusedinthepastcontinuesto bebestplacedtodeliveragainintothefuture but,together,weshouldchallengeallexisting assumptionsagainsttheCouncil’sandthe community’saspirations.

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Award Criteria Performance Obligations

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Create, manage, record outcomes

Further detail on page 20.

2.Thinkandrethinkwhatyouarecommissioning | 11

Service Needs &

Business

Requirem

ents Review

Final

&

Serv

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The Category Cycle

ThecategorywheelensuresthatCroydon’scommissioners,categorymanagersandprocurementteamworktogetherto deliverthebestserviceoutcomesforCroydonresidentswithintheresourcesavailable.

Ateachpointofthecategorycyclethereisa‘challengeopportunity’toensuresocialvalueisconsideredandembedded.

Procurement Legislation Areyoumakingthemost ofthepowersyouhave andofthescoperecent legislationgivesyou?

LookatwhatGlasgowHA achieved(Page55).

Contract Review Isthisachancetodo

thingsbetterbyextracting socialvalueoropening

upaccesstocontractsfor SEsandSMEs?Wakefield DistrictCouncil(Page40) ,LiverpoolCouncil(Page 38),CamdenCouncil(Page 42),andDevonCC(Page 45)andpartnersusedthe contractreviewmomentto

thinkagain.

Prepare

Ana

lyse

Identify Review

Man

age

Tend

er

Category Cycle➤

Proc

urem

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egis

latio

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Contact Review

Category Review

Market DevelopmentStrategic ContactPerformance

Co n ten t Ma nag em e n t

Transition & Contract

Implementation

Tenderi

ng

Tend

er D

ocum

ent P

repa

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n

Performance (Sub-C

ategory)

Strategy&

Plan

Op ti o n s A

ppr ai sa l B

u s i n e ss Ca se

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CategoryStrategy

&Plan

Resource Analysis

Risk Analysis

Gap An a l ys i s

Market & Supplier AnalysisSpend Analysis

Needs

Analys

is &

Busine

ssReq

uirem

ents

Serv

ice

Legi

slat

ion,

Reg

ulat

ory

&Po

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Envi

ronm

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S e r v i c e N e e d s &

B u s i n e s s

R e q u i r e m

e n t s R e v i e w

Market Development

Category Review

Spend Analysis

M a r k e t && S u p p l i e r A n a l y s i s S t r a t e g i c C o n t a c tP e r f o r m a n c e

Se rv

ice

Leg i

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Reg

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TeTT nd

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S e r v ii cce D e s i g n / S pe c i f i c at i o n

Resource Analysis

G a p A n a l y s s

Ris k An a ly s is

F n a O p t o n s A

p p r a s a &

B u s n e s s C

a s e

TeTT ndering

Tr a n s i ti o n & C o n t r a ct

I m pl e m e ntati o n

Pe r fo r m a n c e ( S u b C

a teg o ry )

Strategy & Pla n

C o n t e n t M a n a g e m e n t Cro ydon Council

Needs analysis & business requirements Haveyoufullyscoped theneeds?RaplochURC (Page52)understood thatitneededtosecure socialbenefitstosupport thearea’sregeneration. IslingtonBSF(Page58) sawtheregeneration opportunitiesinitsschool buildingprogramme.

Category Strategy Plan Areyouseeingsocial benefitsaspartofa biggerpicture?Cumbria CC(Page49)sawthe potentialtoinclude socialbenefitsacrossall contracts.

12 | Introduction


Working together on category management

Inordertogetthemostsocialvaluefrom commissioningwemust,therefore,thinkand rethink,identifyingthe‘challengeopportunities’ intheCategoryCyclewhichenableallinvolved toaskthefundamentalquestionsandbeginthe processof,possibly,‘re-imagining’aservice.

TheCategoryWheelsetsouttheCategory Cycleandtheinterfacebetweenthecategory managerandservicecommissioneratevery pointinthecycle.The‘challengeopportunity’ comesatkeypointsintheCategoryCycle. Theroleofbothistochallengeandsupport theservice,andwhereverpossible,toinclude serviceusersinthatthinking.

Thesynergybetweenthecategorymanagerand theservicecommissionerastheyinterrogate thethinkingbehindidentifiedneedsandthe servicesthatmaymeetthoseneedsmaybe thesourceofexcitingnewthinkingandnew approaches.Anaddedvalueofacategory managementapproachisthatothercategory managersormembersoftheProcurement Teammayencouragethecategorymanager tothinkbeyondtheirowncategoryandre-envisionservicesacrossanumberofcategories. Anythingispossible.

EXAMPLE: Rethinking Meals on Wheels

Youarelookingatre-tenderingyourmealsonwheelsservice.Youcouldputitouttotenderwith theusualrangeofcontractorsor,youcouldaskwhatarewereallytryingtoachieve?

Why are we doing this?

...toprovidegoodquality foodforhouse-bound,frailor infirmpeople? Or ...justtomakesurepeople eat? Or ...toreduceisolationand socialcontact? Or ...tomeetrequirements/ legislation? Or ...weknowthecurrent contract runs out in ... Or ...wedon'tknowanymore

What else can we achieve for those stakeholders?

Benefitentitlementchecks?

Basiccommunityhealthcare e.g.podiatry,dressingchange, nutritionandhydrationchecks toavoidunnecessaryhospital admissions?

Localtransport?

Socialnetworkse.g. fortnightlyormonthlygroup meal?

What about other outcomes?

Workplacementsincatering

Training/qualificationsin catering

Communityandsocialcare placements

Developcateringservices forothersectorse.g.schools tocookmealsonwheels; catering contract for a social enterprisecafe



From Foot Care To Mobility

Where feet can take you ... Wellbeing Regeneration, Carmarthenshire.

WellbeingRegenerationisaSocialEnterprise,setupasaresultofafootcarepilotproject,commissionedbyapartnershipbetweenthe NHSPodiatryService,thelocalauthority,the50+Partnership/StrategyforOlderPeopleandtheCarmarthenshireLocalHealthBoard (nowHywelDdaHealthBoard).Itexistedinitiallyasaresponsetothelackofaffordablefootcareforelderlypeople.

Ithassincedevelopedawideportfoliobasedonitsunderstandingoftheimpactofreducedmobilityandlackofexerciseonindividuals’ physical,socialandmentalwell-being.Ithasthereforedeveloped:

•Appropriateshoesellingservices,withassociatedrevenuegenerationandincludesfittingandadvice

•Therapeuticservicesfrommassageandreflexologytophysiotherapyandcognitivebehaviouraltherapy

•‘Leisure’activities,likeartsandcrafts,luncheongroupsandTaiChi

•Asign-postingservice,throughsatelliteclinics,whichhelppeopleaccessinformationonbenefitsandentitlements

Therehasalsobeenpilotcommunitydeliveryofphlebotomyservices(bloodcollectionandanyalysis)developedinpartnershipwiththelocalhospital asaresponsetolongqueuesattheHospital.Therearefutureplans,inpartnershipwithalocalhealthboard,toprovidelowlevelinterventionsfor hearingaids,batteryexchange,replacingtubingandprovidinggeneraladviceanda‘triage’facility.



Opportunities checklist

Ask Act

Stop Whyarewedoingthis? Pauseandframethequestionsyouknowyouneedtoask.

Lookatthisprocessandworkoutwhatelementswillhelpyouto 're-imagine'theserviceyouarelookingtoprocure.

Question Whyarewedoingthis? Whatarewetryingtoachieve? Whatoutcomesarewelookingfor? Whatcouldthisservicelooklikeinfiveyears,tenyears? Isthisthebestwaytoachieveit? Whataretheopportunitiestoaddvalue? Canwedeliverthisbetter? Canwedelivermorethanthis? How...?

Reallyinterrogatetheserviceyouaimtoprocure. Youwanttogetbacktothebasicsaboutwhyyouareprovidingtheservice, whatoutcomesyouwanttoachieve,howyoucanachievethemandwhat elseyoumightbeabletoachieveontheway.Theexamplesuggestssome waystointerrogateprovisionofthemealsonwheelsservice.

Research Whatotheroptionsexist? Whoelseisdoingthis? Aretheydoingitbetter? Aretheygettingbetteroutcomes,moreoutcomes, differentoutcomes? Canwedelivermoreforourmoney?

Talk to... ColleaguesinCroydonfromotherservicesectors; •Yourlocalthirdsector,socialenterprisesandotherproviders •Talktoinnovators,entrepreneurs,challengers,andstakehoIders

Research... Dotheresearch.Usetheinternetorcontactstofindoutwhatotherpeople aredoing.Whathasworked? Lookatcasestudies,bestpracticereports,publications,socialenterprise guides,mainstreamandthirdsectorserviceproviderwebsites...Theexample ofSocialEnterpriseWellbeingRegenerationgivesyouaflavourofhow servicescanbecompletelyre-thought,andunlikelyservicespairedtogether. Conductresearchwithserviceusers-whataretheirneedsreally?

Think ... Whoelsecouldbringanewperspective? Whereelsecouldyoulook?



Ask Act

Re-Imagine

Whatcoulditlooklikeif...?

Whatcoulditlooklikein5years’time?

Whatif...?

Get good brains together Gathertogetherpeoplewhoarelike-mindedandthosewhoaren’t like-mindedandstartstorming.Toolstohelpyoutalkandthinkmightbe: •Sharingfindingsfromyourresearch

•Visitstoinnovativeserviceproviders

•Visitingspeakerswithbestpracticetoshare;and

•Brainstormingworkshops-bringinafacilitatororasksomeonefrom anotherpartoftheLAorotherorganisationstofacilitate.Afresheyeis usuallyinvaluable.

Re - Specify

Weretheoutcomeswestartedwiththeoneswereally wanttoachieve?

Whatdoestheservicereallylooklikenow?

Gobacktothecategorycycleanddeveloparevisedneedsanalysisand setofbusinessrequirements.



3. The procurement steps to achieving good quality social benefits

Choose your procurement route

Thekeytosuccessfullydeliveringadditional socialbenefitthroughourcommissioningor procurementprocessisensuringthatsocial benefitsareatthecoreoftheprocesses. Identifyingthemasoneofthekeydriversofan exercisemeansthatyouhavetheopportunity tosculpttheprocessyouareaboutto commenceinordertosuittheissues(socialand otherwise)whichyouwishtoaddressthrough theinvestment.

Potentialbiddersshouldbeinnodoubtas towhatCroydonhopestoachieve.Our enthusiasmforaddressingsocialneedinthis wayshouldbeclearfromourbehaviourandour documentation.Good,accomplishedbidders willpickuponthisandnomatterwhether youopttointroducesocialawardcriteriaor simplyimposeperformanceobligations(see theargumentsforbothonpage20),theywill understandtheimportanceofbeingmindfulof thisastheyseektoprogressinthecompetition. Ifbiddersdon’tknowhowimportantobtaining socialvalueistoCroydon,thereislittlechance ofthemassistingusinachievingsocialbenefits.

Thethirdsector,includingcharitiesandsocial enterprisesare,ingeneral,deliveringsocial benefitasamatterofcourseandwillbewell-placedtorespondtoyouraspirationsfor socialbenefit.

Althoughtheprivatesectordoesnot,on thewhole,havesocialvalueembeddedinits deliveryprocessesinthesamewayasthethird sectorthereisaclearmovementamongst elementsoftheprivatesectortogetinvolved insuchinitiatives.Yes,theyknowitcanhelp themwinappointments,butitisclearalsothat theyoftenseeitasanextensionoftheirown corporatesocialresponsibilityinitiatives.

ThereforeiftheCouncilcanestablishitselfat theforefrontofthismovementandputinplace mechanismstoharnesstheskillsandexpertise oftherelevantsectorthenthereisaveryreal opportunitytodeliversomethingsignificantfor Croydon.Gettingthemessagerightwillattract credibleandcompetentbidders,withextensive experienceofdeliveringsocialbenefitsthrough theirpubliccontracts,enablingustomakea veryrealdifference.

> Social Benefit as Award Criteria or Performance Obligation

Oneofthekeydebateswhenconsidering integratingsocialbenefitintoprocurementis whetherornotitisappropriatetousesocial benefitsasawardcriteriaandthereforeaspart ofthedecisionastowhotoawardacontractto.

Atitssimplest,asocialissuemaybeanaward criteriaifitislinkedtothesubjectmatterofthe contract.Insuchcircumstancesyouwillbeable totakeintoconsiderationsocialbenefitsatevery stageoftheprocurement,including,forexample atselection(intermsofthebidder’sexperience) andataward(intermsofthebidder’sproposals todeliversocialbenefits).Ifthisisnotpossible,it isstill,however,possibletoimposeperformance obligationsonasuccessfulcontractor.Incertain circumstances,itmayevenbepossibleto combinebothapproaches.

Whatisimportantisthatinnearlyall circumstancesitwillbepossibletoseektosecure additionalsocialbenefits.Determining that the identified social issue is linked to the subject matter of the contract provides the greatest opportunity to ensure social considerations are at the core of the decision-making process.

3.TheProcurementStepstoAchievinggoodqualitysocialbenefits | 17


However,evenifthisisn’tthecaseyoustillhave theopportunitytoimposesocialvaluewithin acontractasapre-determinedperformance obligation–youjustcan’ttakethisintoaccount intheaward.

Aswithmanyelementsofprocurementlaw thereislimitedguidanceastohowtoestablish whethersomethingis,orisnot,linkedtothe subjectmatterofthecontract.Careshould, therefore,betakentoanalysewhatitisyouare seekingtocommission,whatsocialbenefitsyou hopetosecureandwhetheritcanproperlybe saidthatthesocialissueislinkedtothecore requirementofthecontract.

UltimatelyitisuptotheCounciltodetermine whattheprocurementrelatesto.Itmaybe possibletotiethesocialissuetothesubject matterofthecontractandevaluatethebidder’s approachtothisaspartoftheawarddecisionif:

• Youcandescribeindetailtheinvestmentyou aremaking;

• Articulatehowandwhereitrelatesto,for examplethewiderregenerationofthearea;and

• Addresshowitseekstoaddresssomeissue ofcommunitydeficitorwhyitisbeingplaced inordertofacilitateawidercommunity programme.

> Which approach to use and when

Determiningthebestapproachmustbedoneon acasebycasebasis.Asingleapproachwould notworkforanycontractingauthority.Each contractmustbelookedatonitsownmerits andmanydifferentfactorswillberelevantwhen decidinghowtoproceed.Theseinclude:

• Thevalueofthecontract–onlycontracts overcertainvaluesaresubjecttothefull rigoursofprocurementlaw.[Attimeof publicationthethresholdsforworks,supplies andservicesare£4,348,350,£173,934and £173,934respectively].Contractsfalling belowthethresholdsarenotsubjecttomany ofthemorerestrictiveobligations.Inthese casesyouhavesignificantlymoreflexibilityto adoptaprocesswhichsuitsyoursocialbenefit aspirationsandwhichmightmakeiteasier togivecredittobidderswhoseektoaddress socialissuesintheirresponses;

• Thenatureofthecontract(i.e.what’sit for?)–notallcontractslendthemselvesto asocialbenefitapproach.Forexample,itis generallyacknowledgedthatthereislimited opportunitytoembedsocialbenefitsintothe procurementofasimplesupplycontract;

• Whetheritisaregulatedorunregulated contract–notallcontractstriggerthefull applicationsofprocurementlaw.Forexample, contractsfor‘PartB’services(evenifabove threshold)suchasforsocialservices,security orrestaurantservicesareallsubjecttoa lightertouchregime.Similarly,contractsfor investment,simplelandtransactionsand worksandservicesconcessionsareallless regulatedand,therefore,potentiallyprovide anadditionalopportunitytoadoptamore flexibleandcommercialapproachtothe placingofthesecontracts;and

18 | 3.TheProcurementStepstoAchievinggoodqualitysocialbenefits

Inspiring and Creating Social Value in CroydonA Social Value Toolkit for Commissioners

• Whattypesoforganisationsmightbe interestedinthecontract?-Understanding whomightbeattractedbytheopportunity andultimatelywhomightbeabletodeliverit willbeextremelyimportantinchoosingyour approach.Forexample,ifitisforanextremely complexorhighvalueworkscontract,then thefocusmightbeonrequiringminimum numbersofnewemployees,apprenticeships etc.tobedeliveredthroughthecontractand creatingobligationsforatransparentprocess fordeliveringsub-contractoropportunities.

Ifthecontractisasmallerservicescontract considerationmightbegiventowhether smallerbusinessesandcommunityorvoluntary organisationscoulddeliverit.Ifthisisthe case,careshouldbetakentoensurethat suchbusinessesareawareoftheopportunity, understandwhatmightberequiredtotenderfor

itandtherearenounnecessarybarrierstotheir involvementintheprocess(furtherguidance supportingthisapproachispublishedby Croydon’sWorkforceandCommunityRelations directorate–‘CommissioningandProcurement PolicyforJobsandSkills’).

Thefollowingsectionanddiagram(page20) describetwomainsuggestedprocurement routes:Route1–‘AwardCriteria’andRoute 2–‘PerformanceObligation’,(i.e.contract performance)andthemeritsofeachintermsof tryingtogetthemostsocialvaluefrom a contract.

If you look at the flow diagram (over page) first, the text explaining each stage follows.



The Procurement Routes to Achieving Social Value

Beforeyoucanchoosethecorrectroute,youneedtoconsiderwhatitisyouarepurchasing,howyouaregoingtodothisandwhatadditionalbenefityouhopetosecure.

Route 1 - Award Criteria Route 2 - Performance Obligation Thisapproachwillbeavailableifthesocialissuecanbesaidtoberelatedtothesubjectmatterofthecontract. Thisapproachisnearlyalwaysavailableandshouldbetheminimumexpected.

Embed in Business Case EmbeddingintheBusinessCasemeansthatyouarethinkingaboutsocialissues fromtheoutset,givingyouthebestchanceofmaximisingtileopportunity.

Reference in OJEU (PartAservices) Thisisalegalrequirementthatalsoensuresbiddersareawarefromtheoutset

ofyourintentions.(SeesampleOJEUwordingin(page21).

Test previous experience of delivering social benefits in PQQ Asthesocialissueisrelatedtotheawardcriteria,itispermissibletotestbidders’ experienceofdeliveryonsocialissues.(Seesamplequestionsat(page22).

Craft award criteria, and disclose in ITT/ITPD EitherwithintheITTortheinvitationtoparticipateindialoguethesocialaward criteriaweightingsandmethodofscoringshouldbedisclosed.(See3approaches

toawardcriteriain(page37,47,56).

Award Contract-Allsubmissionsareevaluatedandthemosteconomically advantageoustenderidentified.(Seesamplescoringmatrixatpage37and47). Allcommitmentsmadebythepreferredbidderincludingthoserelatedtosocial

issuesshouldbereflectedinthefinalcontract.

Monitor Performance Havingsecuredacommitmentfromthecontractortodeliversocialvalue,itis imperativethatthecouncilmanagethesuccessfuldeliveryofthese.(Seepage 24,53and56fordetailsonhowamaintainingprocessmightbeimplemented.)

Embed in Business Case EmbeddingintheBusinessCasemeansthatyouarethinkingaboutsocialissues fromtheoutset,givingyouthebestchanceofmaximisingtheopportunity.

Reference in OJEU (PartAservices) Thisisalegalrequirementthatalsoensuresbiddersareawarefromtheoutset

ofyourintentions.(SeesampleOJEUwordingin(page21).

Explain Importance in Pre-Qualification Document Again,thisisaboutensuringthatbiddershavenodoubtastothe

importanceofseeingasocialreturntothecouncil.

Disclose Performance Obligations in Tender Documents Whilstnottestedaspartoftheawarddecision,thecontractclausemustbeprovided

toallbiddersinorderthattheycanpricetodeliverthese.(Seepage27).

Award Contract Thecontractisawardedtothebiddersubmittingthedrafttender providingtheyhavecommittedtomeetthecontractualobligations

(includingthesocialperformanceobligations).

Monitor Performance Havingsecuredacommitmentfromthecontractortodeliversocialbenefit,itis imperativethatthecouncilmaintainthesuccessfuldeliveryofthese.(Seepage 24,53and56fordetailsonhowamaintainingprocessmightbeimplemented.)

Feedbackresultsandlearningintothecommissioningcycle



Route 1 Award Criteria Methodology

> Pre-procurement market assessment

Marketassessmentisapowerfultoolfor exploringthecapabilityofthemarket-place todeliversocialbenefits.Attheoutsetofthe procurementtherelevantmarketplaceshould bethoroughlyresearchedanda‘providerlist’ createdofallrealisticbidders,includinglarge establishedproviders,SMEs,micro-enterprises andthirdsectororganisations.Wheretimeand resourcesallow,thesesupplierscanbebrought togetherata‘bidders’day’atwhichtheoutline project-plancanbediscussed.

Initiativesaimedatwideningparticipationin bidders’daysandtheprocurementshouldbe consideredwhereappropriate.Thesemayinclude encouragingmainsupplierstoadvertisesub-contractingopportunitiesinthelocalpressand splittingcontractsintosmallerlots,whichare manageableformicro-enterprisesandSMEs.

Specialistthirdsectororganisations,whowould ordinarilynotbeinvolvedinpublicprocurement shouldalsobecontactedandmadeawareofthe opportunities.

Thesemeasuresmustbecarefullymanaged toavoiddirectlyorindirectlyfavouringany contractorandshouldnotbeusedtoavoidthe applicationoftheRegulations.Furtherguidance onwideningparticipationinpublicprocurement isavailableontheCabinetOfficewebsite (http://www.cabinetoffice.gov.uk/).

Feedbackfrommarketengagementcanbeused toproducetechnicalspecifications,whichalign withthecapabilitiesofthemarket-placeand incorporateachievablesocialbenefits.These specificationswillunderpintheevaluation criteriausedintheprocurementtoselectthe winningbidder.

> OJEU

Whereprocurementfallswithinthescopeofthe Regulations,anoticemustbepublishedinthe OfficialJournaloftheEuropeanUnion(an‘OJEU Notice’).Nomatterwhetheryouareusing awardcriteriaorsimplyperformanceobligations, youmustmakethisclearfromtheoutset.This isnotonlyalegalrequirementbutinadditionit isyouropportunitytoputsuchmattersfirmlyat theforefrontoftheprocurement.

Iftheevaluationcriteriaincorporatessocial benefitsthismustbesetoutintheOJEUNotice. Wordingusedforthispurposeshouldbeframed

asbroadlyaspossibletoensuremaximum flexibilitythroughouttheprocess.Thefollowing isexamplewording:

“It is intended that this Project acts as a catalyst for [broadly define the goal of the social benefits e.g. regeneration within the London Borough of Croydon]. Accordingly, the [contractor] will be required to actively participate in achieving these objectives and contract performance conditions may relate to social and environmental considerations. The contractor’s technical capability to meet these requirements may also be assessed at the pre-qualification stage and criteria which assess the manner in which the contractor will meet these requirements may also be included within the contract award criteria. Further details will be provided in the [Pre-Qualification suite of documents].”

WhereacontractfallsoutsideoftheRegulations, anoticewillbepublishedateithernationalor EUleveldependingonthenatureandvalueof thecontract.Similarwordingshouldbeused toensurebiddersarefullyinformedofthe procurement’ssocialobjectives.



> Pre-qualification Questionnaire

Itiseasytodismissthisasaproceduralexercise buttheelementsinthe‘PQQ’canbekeyto defininghowimportantsocialbenefitsare toCroydon.Intheshorttermitfocusesthe attentionofthebiddersandtheimmediate market,inthelongtermitheightensawareness andbuildsthecontractorskillbase.

Therulesonpre-qualificationquestionnaires (PQQs)permitaninitialassessmentofsocial benefitswheretheyareconnectedtothegrounds forexclusionspecifiedintheRegulations: mandatoryanddiscretionarygroundsfor rejection,financialstandingandtechnical capacitytoperformthecontract.Inpractice, questionsonsocialbenefitwillfallintothelatter category.

APQQmustincludecorequestions,forwhich theCabinetOfficehaspublishedstandardform questions,whichLocalGovernmentbodiesare recommended,butnotobliged,touse.

(http://www.cabinetoffice.gov.uk/sites/ default/files/resources/Annex-A-Core-PQQquestions.pdf).

Projectspecificquestionsmayalsobeused,such asthefollowing:

Environmental Management Policy

1. Do you have a documented policy and organisation for the management of construction related environmental issues?

2. Do you have documented arrangements for ensuring that your environmental management procedures are effective in reducing or preventing significant impacts on the environment?

3. Do you have arrangements for providing employees who will engage in construction, with training and information on construction-related environmental issues?

4. Do you check, review and where necessary improve your environmental management performance? Do you have arrangements for ensuring that any suppliers you engage apply environmental protection measures that are appropriate to the work for which they are being engaged?

Targeted Recruitment and Training

It will be a requirement when carrying out this contract that the contractor provides support for targeted recruitment and training. Please provide [insert number of] examples of your approach to and previous experience of supporting targeted recruitment and training initiatives when carrying out contracts similar to this contract.

Community Engagement

As this project is to be delivered in an area of high residential density, it is important that the contractor engages with the local community as it seeks to successfully deliver the contract. Please provide [insert number of] examples of previous projects where you have engaged with a local community during the successful delivery of a complex project similar to the Project in a similarly built up area.

Detailed consideration should be given to the weighting given to social benefit considerations and how they should be assessed during this stage of the procurement.”

Inverybroadterms,therearetwowaysto “test”whatabiddermightofferintermsofits proposalsforsocialbenefit.Theseare:

1. Specified Requirements: Wherethebidder isrequiredtosubmitfiguresandoutcomes inadefinedmannerandthisiscapturedina contractschedule.

2. Open Questions: Wherethebidderis presentedwithchallengesthatneedresolving viaopenquestionsforthebiddertodevelop innovativesolutions.



> Specified requirements

Apro-formamethodstatementasksbiddersto statehowtheywillprovidethesocialbenefits setoutintheawardcriteria.Thisisthemost straightforwardoptionasitforcesbidders toaddresseachoftherequirementsandcan beevaluatedusingamorestructuredscoring framework.

Thebenefitofspecifiedrequirementsisthatyou ensureaconsistencyofresponseinthetender return.Thismakesevaluationeasierandensures thatbiddersdelivertoaminimumrequirement. Itensuresthattheoutcomescanbetransferred easilytothecontract.Anapproachofthistype hasbeensuccessfullyutilisedacrosstheUKby bodiessuchasRaplochURC(seecasestudyon page52),Crossrail(onitsmulti-billionpound investmentinnewrailinfrastructurepage26), andtheOlympicDeliveryAuthority(page9)on itsinvestmentforthe2012Games.

ExamplemethodstatementsfromCrossrailand RaplochURCaresetoutoverthepage.The potentialdownsideofspecifiedrequirementsis thattheydonotnecessarilychallengebiddersto exceedtargetsanddeliveroverandabovethe requirement.

> Open Questions

Openquestionsprovidebidderswithanoutline ofwhattheauthorityisseekingtosecureand challengesbidderstomeetandexceedthis.

Thebenefitofthisapproachisthatitpresents thegreatestopportunityforabiddertousetheir innovationandexpertisetooffersomething different,toseektodevelopsolutionswhichare notformulaicbutratherwhichlookatproblems fromdifferentangles.Suchanapproachoften deliversagreaterreturngenerallybutalsoa widerandmorediverserangeofbenefits,many ofwhichcouldneverhavebeenanticipatedatthe outset.IslingtonBSF(seecasestudypage58)is oneexamplewheretheLocalAuthoritysecured arangeofbenefitsitmaynototherwisehave achievedusingan‘openquestion’approach.

Anopenquestionmaybedraftedasfollows:

“Bidders are required to demonstrate how they would construct and operate their supply chain(s) in order to respond to matters in the area of the specific Scheme, evidenced by specific examples. This should include as a minimum: Employment opportunities; Education / training / apprenticeship opportunities within the supply chain.”

“The Contractor is required to state in Appendix # the number of small businesses (SMEs) and Social Enterprises (SEs) that he will employ on the Project. The Contractor will be required to make opportunities available and to support the development of an effective supply chain.”

“The Contractor is required to develop and deliver a community benefits plan identifying the benefits which it will contract to deliver during the course of the contract. The plan should describe in detail each benefit, how and when it is to be delivered.”

Whilstthefirstapproach,specifiedrequirements, limitstheopportunityforinnovationtosome extent,itisclearthatevaluatingresponsesfrom bidderstospecifiedrequirementsislikelytobe easier,astheanalysisrequiredtodothisislikely tobefarlesssubjective.



> Contract Management

Theimplementationofsocialbenefitscan onlybeassuccessfulasthemonitoringand reviewmechanismscontainedinthefinal contract.Effectivecontractmanagementis absolutelyvital.

Toensurethatsocialvalueobjectivesare delivered,itmustbepossibletomeasureand quantifytheoutcometheypursue.Wheresocial benefitshavebeenusedasawardcriteria,a carefullydraftedmethodstatementcanbe adaptedforuseinacontract.Whereopen questionsareadoptedorproposalsaremodified duringcompetitivedialoguethoughtmustalways begiventohowproposalscanbemeasuredand managedduringthecontract.

Robustmonitoringagainstdefinedkey performanceindicators(KPIs)mustalso beincluded.KPIsshouldbeclearlydrafted, achievableandreflecttheimportanceofthe socialbenefittotheprojectasawhole.Thedata collectionexercisesshouldnotbeunnecessarily onerousandtheassociatedcostsshouldbe proportionatetothevalueofthecontract.You willneedtoconductfrequentreviewsandinclude appropriateincentivesanddisincentivesto encouragecompliance.

Effectiveandfaircontractmanagement mechanismscanalsofostera‘partnership culture’withasupplier,bringingadditional‘soft’ benefitstoprojectdelivery.

Example of matrix from Raploch URC

> Social Benefit Method Statement

1. Training

1.1Describethestepsthatwillbetakento ensurethatemployedstatusnewentrant traineeswillcompriseeitheraminimum of10%oftheperson-weeksrequiredto delivertheworksoraminimumof157(no.) whicheveristhegreater,andthatwherever possiblesuchnewentranttraineeswillbe recruitedfromEmploymentConnections, EmployAbilityStirlingoranotheragency namedbyLandholdings.

1.2 PleasecompletetheTablesbelowinrelation tothewholedevelopmentandthenthenext two12monthperiods.

Total person-weeks to be delivered by new entrant apprenticeships, employed operatives and nonemployed trainees (excluding work placements)



Occupation Labour

Requirement Person-weeks delivered by New Entrant Trainees

Total for Contract

Apprentices Employed operatives

Non-employed Trainees

Total No. % of total

P/wks No P/wks No P/wks No P/wks No P/wks No

Trades Apprenticeship for Young People and Adults

Employed Operatives semi-skilled and unskilled employees

Total in employment

Non-employed trainees all levels and occupations

Total in Employment and Training

Notes:

P/wks–Aperson-weekistheequivalentofoneperson workingfor5dayseitheronsite,orthroughamixof on-siteworkandoff-sitetraining.Thetotalperson-weeks utilisedonthecontracttoincludetimeprovidedby managementandprofessionalstaff,tradesandoperative staff,andancillarystaff.

No–enterherethenumberofindividualsthatyou anticipateusingforeachoccupationandcategory.

A new entrant traineeisapersonthatisleaving aneducationalestablishment(e.g.school,collegeor university)orleavingatrainingprovider,oranon-employedpersonthatisseekingemploymentthat includeson-sitetrainingandassessmentoroffsite training,oramixofthese.

An Apprenticeisapersonregisteredasanapprentice withanindustryrecognisedbody.Eachapprenticecanbe countedasanewentranttraineeforupto104weeks.



Example of matrix from Crossrail

SILNT Output Breakdown

SLNT Category Yr 1 Yr 2 Yr X Yr X

Equivalent value per £3m tendered

total Total

Crossrail Priorities (at least SO%) - an apprentice or a sustainable job start (min 6 months) for; an individual from the Local Community and/or an individual who has been long-term workless I unemployed/ out of education or training for 6 months plus.

Apprentice (new) 2 1 1FTE P/wks

Job Start 1FTE

Other outputs (50% or less)

Graduate Training Scheme 200 200 1FTE

Placement (days) 200 days 2

Taster (days) 100 days

Workforce Slkillls (days) 200 100 days 2

Work Experience (days) 100 100 100 days 2

26 | Introduction


Route 2 Performance obligations methodology

> Pre-procurement market contact

Wheresocialbenefitsarenotcorerequirements theemphasisofmarketcontactshouldbeonthe industry’scontractualstructuresandsuppliers’ attitudestovariousformsofmonitoringand KPIs.Particularattentionshouldbepaidto suppliers’opinionsonthefeasibilityofthe variousoptionsandtheirlikelihoodofachieving thestatedbenefit.

Preparationformarketengagementisimportant, includingaccuratelydefiningthesocialbenefits andconsideringhowthesemightbeincorporated intocontractsandmanagedgoingforward. Carefulpreparationwillensurebothsidescan contributeeffectivelytotheengagementand begintoconsiderappropriateapproaches.

> OJEU

Asnotedearlier,oneofthekeystosuccess isensuringthatbiddersareinnodoubtasto theimportanceCroydonCouncilplaceson securingsocialvaluefromitsinvestment.Your

enthusiasmforthismustservetoinspirethem throughbothyourbehaviourandconductwhen engagingwiththemandasaclearandconsistent themeineachandeveryprocurementdocument.

Itwillstillbenecessarytoinformbiddersof theroleofsocialbenefitsfromtheoutsetto ensuretheyarecapableofmakinganinformed judgmentonwhethertotakepartintheprocess. Thefollowingwordingmaybeused.

“It is intended that this Project acts [as a catalyst for the social regeneration of the local area]. Accordingly, the [contractor] will be required to participate actively in achieving these objectives. Accordingly, contract performance conditions may relate to social and environmental considerations. Further details will be provided in the Contract Documents.”

> Award / contract management

Performanceobligationsarenotawardcriteria socannotinfluencewhoischosenasthe successfulbidder.Whilstbiddersmustaccept thecontractualconditionsinordertosubmita validbid,theyareonlyrequiredtoimplementthe termswhenperformingthecontract,notbefore orduringthetenderexercise.

Thesameprinciplesofcontractmanagement outlinedabovemustofcoursebeappliedforall socialbenefitelementsofthecontracttoensure effectivedelivery.

Contractualconditionsofferawiderarrayof socialbenefitsthanisoftenpossiblebyusing theevaluationcriteriamethodology.The followingbenefitswereexpresslyrecognised intheEuropeanCommission’sInterpretative Communicationof2001:

• Theobligationtorecruitunemployedpersons, ortosetuptrainingprogrammesforthe executionofthecontract;

• Theobligationtoimplement,duringthe executionofthecontract,measuresthat aredesignedtopromoteequalitybetween menandwomenorethnicorracialdiversity, orprovideequalaccesstopersonswith disabilities;

Introduction | 27


• Theobligationtocomply,duringthe executionofthecontract,withfundamental humanrights(suchastheprohibitionof forcedandchildlabour)guaranteedbythe InternationalLabourOrganisation(ILO)core conventions,insofarastheseprovisions havenotalreadybeenimplementedin nationallaw;and

• Theobligationtorecruit,fortheexecution ofthecontract,anumberofpersonswith disabilitiesoverandabovewhatislaiddown bythenationallegislationintheMember Statewherethecontractisexecutedorin theMemberStateofthesuccessfultenderer.

“The Contractor is required to identify and participate in activities which engage the local community and help raise awareness of the project, the construction industry and sustainable development.

In meeting these requirements, the Contractor will be required to provide a named contact for each site and to actively engage with the Council and to work in partnership with appropriate agencies and service delivery agents.

On the award of the Contract, a detailed process map will be agreed taking account of the delivery infrastructure in the area.

In submitting this tender, the Contractor agrees to meet the Community Benefit requirements and to pro-actively engage with the Council.”

Providedtheintentiontousesocialbenefits issetoutintheOJEU,theonlyotherexpress constraintsarethattheconditionsmustbe relatedtotheperformanceofthecontractand complywithEUlaw.

Whenyougettothestageofmanagingthe contractpleasegotoguidanceonpage24.



Inspire Invitebidderstosetouthow theywillhelpyouaddresslocal

challengesandneeds

Require Biddersmustcompleteamatrixortable specifyingtheexactnumberandnature ofsocialbenefitstheywilldeliverasessed againstpre-agreedmeasuressuchas ‘numberofpersonweeksoftraining’. TheRaplochandCrossrailmatrices

aregoodexamples.

Instruct Biddersmustsetouttheiroffer againstaseriesofclosedquestions.

“Howmanylong-termunemployed willbeemployedontheproject?”

“Howmanysocialenterpriseswillbe includedinyoursupplychain?”



> The Power of ‘Competitive Dialogue’ in maximising social value

Thiscangetabitcomplicatedbutitisworth givingseriousconsiderationtocompetitive dialogue(orCD).ThemainadvantageofCDto Croydonistheabilitytoengagedirectlywith biddersduringdialogue.

CompetitiveDialogueisthemostsophisticated andflexibleofthefourproceduresavailableto contractingauthoritiesundertheProcurement Regulations.Incontrasttoamorerestricted procedure,theCompetitiveDialogueprocedure offersmoreflexibilityduringthedialogue stagetodiscussthefulfilmentofsocialbenefit objectivesasatwo-waydialoguematching theauthority’saspirationswitheachbidder’s capabilities.

IfyoucanjustifyusingCDthenwecan useits‘dialogue’sessionstoraisespecific issueswithbidders,ensuringthattheyare addressedeitherinthebidder’sresponsetothe technicalrequirementsorinthecontractual documentationasappropriate.

However,CDmayonlybeusedforwhatare termed‘particularlycomplexcontracts’.This termisintendedtodescribeprojectswhere theauthorityisunabletodefinethetechnical meansofsatisfyingitsneedsortospecifythe legal/financialstructureoftheprojectfrom theoutset.Inpractice,thisislikelytoarise whereitisnotpossibletoissueacomprehensive setofrequirementsattheoutset.Througha CDprocedure,anauthoritycanengagewith thebidders,usingtheirspecialistandmore technicalknow-howandexpertisetodefineits requirementmorepreciselyandbeforeinviting finalbids.

Anauthoritymustcarryouta‘suitability exercise’beforeusingCDtotestits appropriateness.

Oflate,CentralGovernmenthassoughtto dissuadeprocurersfromusingCDbecauseofthe assumedadditionalcostsinvolvedandthetime ittakestouseCD.Itistruetosaythatitisnot appropriatetouseCDwhenthecomplexityof theprojectdoesnotjustifyit.However,itisalso thecasethatoftenitistheonlyappropriateway toputinplaceacontractwhichisnotsimple andonwhichthelegal,financialortechnical requirementscannotbespecifiedinadvance.

ApproachesusedtodeliverunderCDhave becomesignificantlymoreefficientandeffective inrecentyears.Inlightofthis,andgiventhatCD providesthebestplatformtoencouragebidders todelivermore,unilaterallyrulingoutuseofCD inallbutexceptionalcaseswouldundoubtedly representamissedopportunity.




Outline of the procedure

Inthemoreregulatedprocurements,aCD startswithacallforcompetitionbywayofa noticeintheOfficialJournaloftheEuropean Union.Bidderswhoexpressaninterestare thenaskedtocompleteapre-qualification questionnaireandselectedbiddersareinvited toparticipateindialogueandsubmitoutline solutions.

Afterexaminingtheoutlinesolutions,the authoritywillconductaseriesofmeetings (knownas“dialoguesessions”)witheach bidderindividually,wheretheirsolutions willbediscussed.Theauthoritymayholdas many“phases”ofdialogueasitchoosesand dependingonthecompetitionstructure,may conductinterimevaluationsbetweenthe phasesandexcludeweakbidders. Wehaven’tgoneintodetailinthisToolkitbut clearlywherecommissioningorprocuring aservicewhichconstitutesaPartBService (forexample,healthandsocialservices, restaurantservicesorrecreationalorcultural services)whichisnotthereforeregulatedas strictlyasaPartAservice(i.e.maintenance andrepair,architecture,accountingetc.),the potentialisgreatertoadoptamoreflexible procedurewhichhas,atitscore,dialogueand directengagementwithbidders.

Benefits of using Competitive Dialogue in achieving Social Benefits

ThemainadvantageofCDtoCroydonisthe abilitytoengagedirectlywithbiddersduring dialogue.IfCroydoncanjustifyusingCDthen itcanuseitsdialoguesessionstoraisespecific issuewithbidders,ensuringthattheyare addressedeitherinthebidder’sresponsetothe technicalrequirementsorinthecontractual documentationasappropriate.Byhighlighting anddiscussingclearobjectiveswithbidders, Croydoncouldensurethatallbiddersareclear onallofthedriversfortheprojectincluding anyeffortstosecuresocialbenefits,thereby ensuringthatbiddersareinastrongpositionto fulfilthemandpossiblyexceedthem.

AsecondadvantageofCDisthecompetitive tensioncreatedbetweenbiddersduring dialogue.Apro-activebidderwillnotonlyseek

tofulfilthesocialbenefitsidentifiedbythe authoritybutwiIIoftenalsoattempttobuildon thethemespresentedtocreateacompetitive package,whichmayexceedtheauthority’s expectations.

Asauthoritiesdemandmorevalueformoney fromtheirsuppliers,theabilitytodemonstrate additionalsocialbenefitsisakeyopportunity forsupplierstodifferentiatethemselvesfrom theircompetition.Afurtheradvantageisthat CDisevaluatedusingthe‘mosteconomically advantageous’tendercriteria,whichseeks toidentifythebest-valuetender,takinginto accountvariousfactors,expresslyincluding socialcharacteristics,placingsocialbenefits attheheartofbidderssubmissionsandthe evaluationprocess.



> Conclusions

Insummary,whenyouareconsideringwhich procurementroutetotaketogetmostsocial valueitwillhelpyouifyoufirstconsiderwhat we want to achieveandhow we are going to go about it,takingintoaccount:

• Thevalueofthecontract;

• Thenatureofthecontract(i.e.what’sitfor?);

• Whetheritisaregulatedorunregulated contract;and

• Whattypesoforganisationsmightbe interestedinit?

Aswesaidatthestartitcanbetemptingto dismissprocuringforsocialbenefitastootricky! Thistoolkit,however,demonstratesthatsecuring socialvalueinvolvessimplestepsthatintegrate socialbenefitsintoourprocurementpractice.It isstraightforward,achievableandworthwhile.

Takingthosestepswillbringsignificantbenefit toCroydonCouncilandthepeopleitservesby deliveringasocialreturn,whereverpossible,on everypounditspends.

Whatfollowsnextisanumberofcasestudies fromlocalauthoritiesorpublicbodieswhohave securedsocialbenefitthroughprocurement. Thereare10casestudies.

Thistoolkitisentitled‘Inspiringandcreating SocialValueinCroydon’.Theintentionisthat thesecasestudiesnotonlyinspireusallinto actionbutthatweusetheminpracticalways: tohelpusrecognisewhereopportunitiesexistin thecategorycycle;toofferreassurancethatit canbedoneandtoofferactualtenderdocument extracts-clauses,disclaimers,evaluationtables andsoonforre-use.

Wehopethisgetsyouonyourwayto gettingasmuchsocialvalueaswecanoutof commissioningandprocurementforthepeople ofCroydon.



4. Case Studies

1. CASE STUDY: CCURV Skills and Employment Group

This case study demonstrates Croydon’s commitment to sustaining employment and building skills in the borough.

Background

CCURVisaLocalAssetBackedVehicleinto whichCroydonCouncilprovideslandand assetsandJohnLaingprovidesequityworking capitalanddevelopmentmanagementservices toundertakedevelopmentprojects.CCURV iscommittedtodeliveringregeneration holisticallywithinCroydon.Ambitious yetrobuststrategiestodeliversocialand economicbenefitslocallyarepartofCCURV’s strategyforeachdevelopmentandare reflectedaskeydeliverablesinCCURV’s contractswithitsconstructionsupplychains. TheCroydonCouncilUrbanRegeneration Vehicle(CCURV)Skills&EmploymentGroup bringstogetherthepublicprivateandthird sectorstoshapeandreviewthesocialand economicbenefitsdeliveredthroughCCURV; aninnovative25yearpartnershipbetween CroydonCouncilandJohnLaing,aprivate investoranddeveloper.

> How social value was secured

The tender process

CCURV’sobjectivetoencourageemployment generationandgrowthofabuoyanteconomyfor CroydonisoneofanumberofpublishedCCURV objectivesthatarecontainedintheoverarching CCURVlegalframeworkbetweentheCounciland JohnLaing.Thisobligationiscarriedforwardin performanceindicatorsagreedandcommittedto byCCURVcontractors.

Opendialoguewithcontractorsisundertaken duringtheselectionprocesspriortoappointment concerningcorporatesocialresponsibilities commitments:localemployment,educationand training,careerandprofessionaldevelopment, localsupplychainandcommunitydevelopment.

Specificcommitmentsagreedwithcontractors areratifiedbytheCCURVPartnershipBoardand enshrinedwithincontracts.Typicaltargetsmight include:

• Adefinedpercentageoftheworkforcetobe ontraineeanddevelopmentprogrammes

• Adefinedtargetpercentageoftheworkforce toberecruitedlocally(i.e.fromwithinthe CroydonTraveltoWorkarea)andallnew employmentopportunitiesadvertisedin Croydonfirst

• Creatinglocalsupplychainopportunities, seekingtoplaceadefinednumberofpackages withlocalbusinessesanddefinednumberof furtherTier3packages

• Creatingopportunitiesforthirdsector organisationstoenterthesupplychainor toprovideaddedvaluebylinkingservices tolocalneeds.

• Creatingandsupportingworkplacements, internshipsandothervocationalopportunities forCroydon’syoungpeople

• Engagingdirectlywiththecurriculumthrough supportingthedevelopmentofvocational diplomasanddevelopingconstruction-linked lessonplans

4.CaseStudies | 33


• Workwithatleast1voluntaryandcommunity sectororganisationonanongoingbasisfor thelifeoftheproject

• Appointadedicated“Champion”toundertake liaisonwithlocalcommunities,groupsand organisations

> What social value has been achieved

TheSkills&EmploymentCoordinationGroup wasestablishedbecausebothCroydonCouncil andJohnLaingrecognisedthatmorecouldbe achievedbysupportingpositivecollaboration thanbyleavingthesupplychaintowork autonomouslyandperhapsinisolationfromthe organisationsandinitiativesalreadysupporting communitiesandbusinessesintheborough.

TheSkills&EmploymentCoordination Groupmeetsmonthlyandincludes:Croydon College;JobcentrePlus;REDs10;National ApprenticeshipsService;BusinesstoBusiness; CroydonVoluntaryAction,ChangingPaths;Sir RobertMcAlpine;WatesConstruction;CSkills; JohnLaingandCroydonCouncil.

TheSkills&EmploymentCoordinationGroup seekstomaximiselocalbenefitsbydeploying thecomplementary,butdifferentskillsofeach ofitsmembers,toseizenewopportunitiesand

collectivelytacklechallengesthatcouldhinder delivery.Successesto-dateinclude:

• Over£6millionCCURVsupplychaincontracts havebeenawardedtoCroydon’sbusinesses. LocalSMEengagementhasbeenfacilitated throughworkingwithBusinesstoBusiness, whichprovidesERDF-fundedservicesto providetailoredengagementtoupskilllocal SMEstoidentifyandeffectivelycompetefor oursupplychaincontracts;

• CCURVanditsconstructionpartnersalso supportedBusinesstoBusinesstobidfor, andsecure,furtherfundingtoextendits businesssupportprogrammefortwomore years.Ourabilitytostimulatedemandis growingencouragingoursupplychaintobuy fromlocalfirms.Ithelpstoeffectivelylink thetraininglocalbusinessesreceivetoreal opportunities;

• Averagelocalemploymentof18.2%onthe BernardWetherillHousescheme(SirRobert McAlpine)and23%ontheWaddonmixeduse scheme(WatesConstruction);

• WithadvicefromtheNationalApprenticeship Services,anApprenticeshipTrainingAgency (ATA)hasbeenestablishedbetweenCCURV andREDs10,anawardwinningsocial

enterprise.TheATAaugmentsthenumber ofapprenticeshipsgeneratedbyCCURV’s constructionsupplychainsbybrokeringpart placementsacrossmultipleCCURVprojects; To-datethishascreated12placements, whichwouldhavenotbeenpossibleifwe hadonlyadoptedatraditionalapproachto apprenticeships;

• FundedbytheWatesGivingProgramme andtheJohnLaingCharitableTrust,a bespokeprogrammehasbeenprovidedby theconstructionsupplychainandChanging Pathstoprovidetrainingandguaranteed sustainableemploymenttothoseleaving prison.ThiswasdesignedaspartofCroydon’s responsetosupportinglocalcommunities aftertheBoroughwasaffectedbycivicunrest inthesummerof2011.

Akeysuccessfactorwithinthisinitiativehas beenthecollaborativeapproachbetween ChangingPaths,JobCentrePlus,Croydon Councilandourconstructionpartners.The partnershipshasbeeninstrumentalintackling potentialbarriersthatmayhaveprevented beneficiariestakingpart,suchasthepossible lossofbenefits.To-date5ex-offendershave securedsustainable,fulltimeemployment throughthisinitiative;

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• 8localpeoplewhowerelong-term unemployedundertookanintensivetwoweek workexperienceprogrammeorganisedby SirRobertMcAlpinetogetherwithJobcentre Plus,whichhasledtosustainable,fulltime employmentwithfirmsintheconstruction supplychain;

• Awiderangeoflecturesandplacements havebeenofferedforstudentsatCroydon’s collegesandschoolsandWatesConstruction isprovidingtraininginthelatestindustry technologiesforteachingstaffatCroydon College’sNewAddingtonConstruction Trainingcentre;

• Recognisingthateffortstoplacelocal peopleinconstruction-linkedemployment opportunitiesaresometimeshampered byalackofunderstandingaboutspecific tradeandskillsrequirements,JobcentrePlus workedwithREDs10,SirRobertMcAlpineand WatesConstructiontodeveloptrainingand dedicatedpointsofcontact.Thisensureda bettermatchbetweenthecandidatesunder considerationandthevacanciesthat becomeavailable;

• ATrainingandVisitorCentrehasbeen providedbyCCURVandSirRobertMcAlpine. IfoverlooksakeyCCURVdevelopmentsite andisheavilyusedbycommunitygroups, schoolsandCroydonCollegeforpractical learningopportunities.

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2. CASE STUDY: Grampian Housing Association and Solstice Nurseries

This case study demonstrates how Grampian Housing Association included social benefits as core requirements in its open

spaces maintenance contract after recognising the added value that Solstice Nurseries brought to the original contract through

its workforce of people with mental health difficulties.

Background Procurement Legislation

SolsticeNurseriesisasocialfirmthatprovides trainingandemploymentaroundhorticulture forpeoplesufferingwithmentalhealth difficulties.GrampianHousingAssociation (GrampianHA)playedacrucialrolein supportingSolsticeNurseriesinitsstart-upphaseandcontractedittoprovideopen spacemaintenanceworkonanumberofits estates.Italsoprovidedaccommodationfor theorganisationwhileitsecuredfundingand establishedanewsiteforthenursery.

Whentheopenspacecontracts,atavalueof £100,000,cameupforretenderingGrampian HAneededtotestSolsticeNurseries’ servicesagainstthewidermarket.However, italsowantedtorecognisethetraining andemploymentopportunitiesthatsocial enterpriseslikeSolsticeNurseriesprovide.

Verifiedlegalityof includingsocialvalue clausesinthecontract

Contract Review Recognisedthe

socialvalueachieved alongsidegrounds

maintenance outcomesandwanted

to continue to achievethem

Tender Document Preparation

Enshrinedsocialvalue outcomesintender documentation

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Needs analysis & business requirements Establishedneedfor openspacemaintenance andsocialvalue outcomes

Category Strategy Plan Areyouseeingsocial benefitsaspartofa biggerpicture?Cumbria CC(page49)sawthe potentialtoincludesocial valueacrossallcontracts.

Service Design / Specification Usedprepphaseto incorporatesocialvalue outcomesinopenspaces contractspecification



The tender process

AlthoughGrampianHAwaskeentosecure trainingandemploymentopportunitiesfrom itscontractorstheorganisationwasunsure ofthelegalbasisofsuchanapproach.Legal advicereassuredthemthataslongasthere wasaclearstrategicfitwithGrampianHA’s aimsandthatthesocialbenefitwasthecore purposeofthecontract,itwaspossibleto requiresocialvalue.GrampianHAconcludedthat theirstrategicobjective3gaveaclearremitto developsocialvalue:

“Promote social inclusion through community based projects.”

GrampianHApilotedanamendedprocurement procedureforthecontract.Thetenderwas weighted30%priceand70%qualitytoensure thatpricewouldnotoutweightheotherbenefits inawardingthetenderwhilestillensuringthat thecontractrepresentedbestvalue.Thequality criteriaincluded:

Quality of workmanship and service and community benefits, training and added value in terms of the Association’s wider role

Eachqualityheadingwasmeasuredusing questionswithaweightedscore,dependingonits priority,withindividualscoresaddingupto100 across a section.

Thescoregavecontractorsanideaofthe importanceofeachqualityareatothe Association.TheAddedValueelementofthe qualitycriteriacarrieda30%weighting.The Tableshowseachelementoftheaddedvalue criteria.

> Contract Award

Althoughanumberofcontractorswereableto demonstratehowtheyrecruitedandsupported long-termunemployedpeopleintheworkplace, SolsticeNurseriessubmittedabidwhichhada winningcombinationofpriceandquality.

> What social value was achieved?

SolsticeNurseries’tenderdescribedhowthey wouldmeetthesocialclausesby:

• Employingamaintenanceassistant

• Throughtheirsocialaimstatementasasocial firmemployingseverelydisadvantagedpeople

• ProvidingVocationallyQualifiedandother recognisedtraining

• Sourcingmaterialsandserviceslocally

Part 3 Added Value (30%) Marks allocated

3.1Thenumberofnewjobsthatwillbecreatedthroughsecuringthiscontract 20

3.2Thenumberofunemployedpeoplewhogainemploymentasaresultofsecuringthiscontract 20

3.3Thenumberofpeoplecompletingrecognisedtraining,asaresultofsecuringthis contract(pleasestatewhichcourse/courses)

20

3.4Thenumberofpeoplecompletingprogrammestohelpincreasejobrelatedskillsasaresult 20

3.5Whatdoyoudotohelpsustainability,forexample,inthesourcingoflabour, materials,plantsetc?

20

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3. CASE STUDY: Liverpool City Council and Bulky Bobs

This case study demonstrates how, by reviewing its tender processes, councils can not only open up competitions to social enterprises,

but also deliver social benefits and achieve greater value for money.

Background Contract Review

In2000,LiverpoolCityCouncilwasexploring howtodeliveritsrecyclingserviceundera newregimeofbudgetaryconstraintsasits contractwithamainstreamcontractorcame toanend.TheCouncil’sfinancialconcern arosefromthe‘percollection’payment systemitusedwiththepreviouscontractor. TheCouncilwasreceivingmorecallsthan expectedtoitsrecyclingservicewhichmeant a£10percollectionfeewaslikelytobecome tooexpensivefortheCouncil.Theywerealso keentobuildlinkswith,andsupport,thesocial enterprisesector.

TheCouncilapproachedtheLiverpoolbased FRCGroup.BulkyBobsisoneofFRC’ssocial enterprisesandprovideswasteremovaland recyclingservicesforbulkyitemsatthesame timeasprovidingtrainingandemployment opportunitiesforthelong-termunemployed.

Recognised unsustainablecostof ‘peritem’contract

paymentstructureof existingcontractand potentialtodeliver

socialvalue


Brokeworkintotwo contractsinorder toreducebarriers tosocialenterprise

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Needs analysis and business requirements Identifiedwaste/ recyclingoutcomes andsocialvalue outcomesrequired

Market & Supplier Analysis Recognisedthepotential forinvolvementof SocialEnterprises


■ Serviceowner

38 | 4.Casestudies



The tender process

TheCouncilwaskeentoensurethatsocial enterprisesdidnotencounteranyunnecessary barriersinrespondingtothetender.Toensure thiswasthecasetheCouncilsplitthefunding forthebulkywasteintotwocontracts.The firstcontractfocusedondeliveringbulkywaste removalandrecyclingandthesecondfocusedon thedeliveryofvocationaltrainingforhard-to-reachpeople,suchasthelong-termunemployed, fundedbylocalNeighbourhoodRenewalFund money.Separatingthebasicservice(bulkywaste) fromthesocialservice(vocationaltraining)made awardingthetwocontractsmoreclear-cutand enabledLiverpoolCityCounciltobetransparent aboutexactlywhatitwaspayingfor.BulkyBobs wonbothcontractsandwasthemostfinancially competitivebidder.

Thecontractworkedoutcheaperthanthe previousoneforthecouncil,withBulkyBobs respondingtoalmosttwiceasmanycallsper yearthanthepreviouscontractor.BulkyBobs benefitedfromthesecurityofanannuallump sumpaymentforitsservices.


• TheCouncilprovidesawiderserviceforthe sameamountofmoney

• TheCouncilhasreduceditslandfillcostsand benefitsfromBulkyBob’scontributionto reducingthecity’scarbonfootprint

• BulkyBobsemployslocalpeopleanduses localsupplierswherepossible,whichmeansit makesasignificantcontributiontothelocal economy

• Longtermunemployedpeoplebenefitfrom realworkexperienceandmanygoontofull-timeemployment

• Localfamiliesbenefitfromthegoodquality, affordablerefurbishedfurnituresoldby BulkyBobssells

BulkyBobsnowprovidesservicestotwo otherLocalAuthorities-Oldhamand Warringtoncouncils.

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4. CASE STUDY: Wakefield Metropolitan District Council, the Yorkshire Purchasing Organisation and Fresh Pastures

Wakefield Council and Yorkshire Purchasing (YPO) organisation showed that social enterprises are well placed to deliver contracts with

added value when procurers remove barriers to tendering through, for example, awareness raising and market making.

Background Service needs & business

requirements reviewFreshPasturesisaCommunityInterest Company(CIC)setupby2peoplewho wantedtotakeamoreinnovativeapproachto providingmilktoschools.Aswellasproviding localmilktheyalsowantedtoprovide employmentopportunitiesforpeoplewith disabilitiesandthelong-termunemployed. 25%ofitsworkforcecomprisespeoplewitha disabilityandtheremainderarerecruitedfrom thelong-termunemployed.Anyprofitisring-fencedforsocialbenefitandploughedback intothecompany.

Recognised importance ofaddressing

sustainabilityand socialvaluein

commissioning for nextphase

Market Development Tookinitiativetoopen upthemarkettoSEs andSMEsthrough

information sessions andsupport.

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Needs analysis & business requirements Includednew sustainability requirementsinto desiredoutcomes

Performance Strategy & Plan Reviewedprocurement approachand incorporatedsocial benefit%


■ Serviceowner

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The tender process

In2007contractsfortheprovisionoffreshmilk withYorkshirePurchasingOrganisation(YPO),a purchasingconsortiumforlocalauthorities,were dueforrenewal.WakefieldCouncilwaskeento workwithYPOtoestablishnewcontractsthat tookaccountofsustainabilityissues.

YPOandWakefieldCouncilprocurementteam workedtogethertodevelopaprocurement processthatrecognisedsocialbenefits.5%ofthe totalawardcriteriawerebasedonsustainable andcommunityfocusedbenefits.Theyalsoaimed toensurearangeofsupplierscouldbidby:

• Holdingatenderclarificationsessionwhere theyrespondedtoquestionsaroundthe tenderprocessandspecification

• Holdingengagementeventsacrossthe businesscommunitytoraiseawarenessabout procurementopportunitiesandgivenon-traditionalcontractorssupportandguidance ontheprocurementprocess

TheSocialEnterpriseSupportCentrealsohelped thirdsectororganisationstodeveloptheir tenderingskills.

FreshPastureswasoneoftwosuccessful tenderersawardedframeworkcontracts. DairyFarmerswastheothersuccessful contractor-aco-operativeofregionaland nationaldairyfarmers.


Environmental:minimisingfoodmiles, recyclablecartons

Social:employmentpolicy

Educational:Aswellasprovidingchildrenwith milkatschool,theyusethecartonstoeducate youngpeopleonhealthyliving,gooddietary planning,environmentalissues,socialinclusion, equalopportunityanddisabilityawareness.

Economic:localproduce,communityfocus

InacommissioningrelatedSROIimpactmapping exercise,FreshPasturesidentifiedthatfor every£1ofcontractdeliverable,59pofsocial returnwouldalsobederivedinenvironmental, educationandemploymentbenefits.

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5. CASE STUDY: Camden Council and Holy Cross Centre Trust (HCCT) consortium (Mental Health Day Care Services)

Camden responded to the conclusions of a Best Value review by developing an outcomes based approach to commissioning which not only

identified service related outcomes but social, economic and environmental outcomes it wished to achieve.

Background Contract Review

In2005,aBestValuereviewoftheCouncil’s mentalhealthdaycentresfoundthatthey werenotmeetingtheneedsofsomeofthe borough’scitizens,suchasyoungpeopleand thosefromminorityethnicgroups.Italso founditneededtodomoretopromotethe independenceandrecoveryofservicesusers andinvolvethemmoredirectlyinthedesign anddeliveryofservices.Thecounciltherefore decidedtore-commissiontheservice.

Atthesametime,aspartofits’placeshaping role,Camdendecidedtodevelopandpilot aSustainableCommissioningModel.The modelwasdesignedtofocusonoutcomes andcapturethevalueofthoseoutcomes createdbycommissioningservicesatboththe service-levelandacrossthewidercommunity includingeconomic,environmentalandsocial outcomes

Recognisedcurrent servicesweren’t meetingpotential

users’needs

Tender Document Preparation Incorporated

outcomesbased approachintotender

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Needs analysis & business requirements Identifiedopportunity foroutcomesbased approach

Performance Strategy & Plan Developedoutcomes basedprocurement model

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Background continued

•Trackthevaluetotheservice,counciland widerpublicsectorofachievingthese outcomes

Theprojectalsosetouttoincrease opportunitiesforthirdsectororganisationsto engageinthedesignanddeliveryofservices inCamdenandtodevelopthirdsectorsupply sidethroughcapacitybuildingandsupport.

TheHolyCrossCentreTrust(HCCT)works alongsideover1400individualsayear.Its approachisshapedbythebeliefthatthe mosteffectiveinterventionsdrawonthe strengthsandassetsofservicesusersandthe communityratherthanonprofessional servicesandexpertise.


The tender process

Camdenputouttotender,throughanopen competition,acontractworth£2million overthreeyearstoprovidecentre-basedday supportacrossthreeofitsexistingbuildings. Thetenderwascommissionedonanoutcomes basis.Outcomesreflectedsocial,economic, andenvironmentalconcernsforthecouncil,on thebasisthateachservicecanplayarolein deliveringthosestrategicorhighleveloutcomes. Outcomeswerealsoidentifiedataservicelevel, suchas:

• accesstotrainingandemploymentservices, improvedphysiologicalwell-being,improved physicalwell-being,reducedstigmaand discrimination,increasedcommunity participation,andincreasedsocialnetworks.

Theoutcomeswerethenincorporatedinto everystageoftheprocurementcycle,frompre-qualificationquestionnairethroughtocontract awardandcontractmonitoringandevaluation. Bidderswereinvitedtodescribetheactivities andtheoutputstheybelievedwouldcreatethe outcomesthatthecommissionerwasseeking, aswellashowtheservicewouldmeetwider communityleveloutcomes.

HCCTformedaconsortiumwithMINDin CamdenandCamdenVolunteerCentretobidfor thecontract,specifyingarangeofoutcomesand approachestoachievingthem,suchastheuseof peersupportnetworks,insteadofprofessionals, totransferknowledgeandcapabilities-devolving responsibility,leadershipandauthorityto serviceusers.

Centraltotheconsortium’sapproachwas‘time banking’.ParticipantsinvolvedintheTimeBank earncreditsforengagingwiththeserviceandfor helpingeachother.

Theconsortiumwasnotthecheapesttenderon aunitcostbasis,butwononthebasisofbeing themosteconomicallyadvantageoustender duetoitscombinationofpriceandquality. Thecommissioners’overallevaluationwas thatitsfocusonservice-userandcommunity involvement,aswellaswidersocialand economicimpactswouldcreatethemost positiveoutcomesandbestvalueformoney.

Contract value:£2million

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Alongsidetheservicelevelsuccesses,suchas adulteducationinitiativesandworkexperience opportunities,otheroutcomesincluded:

• Involvementofthewidercommunitythrough theuseofvolunteersattheDayCarecentres

• Activeinvolvementofserviceusersinthe design,deliveryandevaluationofservices

• Cateringsupplieslocallysourcedtoensure a‘localspend’

• Supportforrecyclingandcyclinginitiatives amongserviceusersandstaff,thus contributingtoCamden’senvironmental objectives

44 | 4.Casestudies


6. CASE STUDY: Devon County Council and partner authorities and Mid Devon Community Recycling

Devon County Council and partner authorities addressed the barriers that itsprocurement requirements posed to SMEs wishing to

tender for its recycling services and developed an evaluation matrix that could take account of added value.

Background

WhenDevonCCanditspartnerdistrictand unitaryauthoritiescametore-commission theirrecyclingcontracttheywantedtoensure thatSMEsandsocialenterprisessuchasMid DevonCommunityRecycling(MDCR)were abletobid.MDCRwasfoundedin1988by agroupofvolunteerstodemonstratethe feasibilityofrecyclingandsuccessfullybid forthecouncil’srecyclingcontractin1992. Howeverdespitecontractvaluegrowthand turnoverof£1millionMDRCwouldnotqualify tobidbecomeofitslimitedcapitalreserves.

Tender Document Preparation Developeda sustainability

matrixtoassist inevaluating addedvalue

Performance Strategy & Plan

Revisedqualification requirementstoopenup

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Needs analysis & business requirements Recognisedadded valuecontribution madebySE


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The tender process

DevonCCanditspartnerlocalauthorities recognisedthechallengesinvolvedinprocuring forsocialbenefit,bothforcommissionersand SMEandthirdsectororganisations,whocanbe eitherexcludedfrombiddingbecauseofstringent qualificationcriteria,ordeterredbythecontract sizeandtenderprocess.TheCommissioners thereforemadeanumberofchangestothe processtoenableSEsandSMEstobid,including MDRC.

Theseincluded:

i)Therequirementsonfinancialguaranteesfor largecontractswerewaived.TheCounciloffset theriskbyincludingacontractclausethat enabledtheCounciltotakeoverMDCR’sfleet andequipmentandruntheservicethemselves shouldMDCRfail.MDCRalsohadanestablished trackrecorddatingbackto1996which minimisedtherisk.

ii)LikemanySMEsandSocialEnterprises, MDCRhaslimitedcapitalreserves.Thisrestricts theopportunitytoexpanditsoperationsby, forexample,increasingthesizeofthefleet. However,theCouncilfeltthatthisdisadvantage wasoutweighedbyMDCR’saccesstocentral

governmentfundingtobuythevehiclesit requiredbecauseoftheirinnovativeapproachto vehicledesign.

Devonlocalauthoritiesandthirdsectorparties alsodevelopedguidelinesonenablingSMEs andSEstobidforcontracts,alongwitha sustainabilitymatrixtobeusedincontract specificationandinevaluatingaddedvaluefor wastereuse,recyclingandcompostingservices. TheaimistoensurethattheaddedvalueofSEs andotherthirdsectorpartnersisrecognisedin theevaluationprocess.

Thematrixisdesignedtobeusedaspartofthe qualityschedule.Sustainabilityaccountsfor20 percentofa60percentqualityscorewiththe remaining40percentallocatedonprice.Bidders areinvitedtooutlinewhatmeasurestheywill take,orhaveinplace,toaddressthedifferent elementsofsustainability,althoughtheyare notprovidedwithacopyofthematrixinorder todifferentiatebetweenbidderswithagenuine commitmenttowardsdeliveringsocialbenefit andthosewhomerelywishtoticktheboxes.

Althoughtheguidelinesrecognisethatscoring thesemeasuresrequiresalevelof‘value judgement’italsoencouragesthecommissioning teamtotakeintoaccountanyevidence submitted,assessmentsofintentionsand

trackrecordsandanyotherrelevantfactors. Commissionersarealsoencouragedtoassess whetherthebidderhastherequiredcapacity, knowledge,understandingandcommitmentto deliverthesocialbenefitstheypropose.

MDCRbidagainstfivecommercialmultinational companiestowinthecontracttodeliverMid Devonrecyclingservicesfor2006-2013.MDCR wascompetitiveonpriceandofferedarangeof socialbenefits.


Aswellasdeliveringalarge-scalerecycling serviceMDCRprovidedarangeofcommunity levelbenefitsincluding:

• Reducedenvironmentalimpacte.g.using trucksconvertedtobiodiesel,trainingdrivers infuel-efficientdriving

• Employmentopportunitiesforpeoplewith learningdisabilities

• Useofalocalsupplychain

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S C O R E

1 2 3 4 5

1. How would you promote recycling and resource management in Devon

Areascoveredinclude:strategiestoraiseawarenessaroundrecyclingand improveparticipationrates

2. What is the proposed market destination and end use location of recyclables/materials

Areascoveredinclude:useoflocalmaterials

3. What measures will you put in place to minimise the impact your contract delivery has on climate change/carbon emissions?

Coveringe.g.vehiclemiles,renewableenergy,carbonfootprint

4. Describe any community and/ or social benefits that are or would be delivered by your organisation?

Coveringe.g.employmentfordisadvantagegroups,servicesofbenefittowider community,communityinvolvement,useofvolunteers

5. What benefits will you bring to the economy?

E.g.Useoflocalservicesorlocallabour,trainingopportunities

6. How will your proposals contribute to the wider government national and local strategy and what added value would you bring over and above the contract specification

Thematrixisdesignedtobeusedaspartof thequalityschedule.Sustainabilityaccounts for20percentofa60percentqualityscore withtheremaining40percentallocated onprice.Biddersareinvitedtooutline whatmeasurestheywilltake,orhavein place,toaddressthedifferentelementsof sustainability,althoughtheyarenotprovided withacopyofthematrixinorderto differentiatebetweenbidderswithagenuine commitmenttowardsdeliveringsocialvalue andthosewhomerelywishtoticktheboxes.

Althoughtheguidelinesrecognisethat scoringthesemeasuresrequiresalevelof ‘valuejudgement’italsoencouragesthe commissioning team to take into account anyevidencesubmitted,assessments ofintentionsandtrackrecordsandany otherrelevantfactors.Forexample,some organisationshavecommissionedSocial ReturnonInvestmentauditstodemonstrate theirimpact.Commissionersarealso encouragedtoassesswhetherthebidder hastherequiredcapacity,knowledge, understandingandcommitmenttodeliver thesocialvaluetheypropose.

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Guidelines to procurers (extract)

Guideline 1

LAstoconsiderlettingsmallercontractsallowing3rdsectorcompanies withspecificexpertisetocompeteand/orbreakingcontractsdowninto constituentparts,e.g.plantandlabour.

Guideline 2

Considerlettingsmallercontractswithlessonerousapplication proceduresallowing3rdsectorcompanieswithoutlargecontract sectionstocompete.

Guideline 3

Considerlinkingsocialinclusionbudgetswithservicebudgets

Guideline 5

LAsshouldconsiderwhetherthehighlevelofimportancethey sometimesattachtoaminimumturnoverrequirementisnecessary orrelevant.3rdsectorcompaniesareoftenverysmallsothiscriterion isoftenproblematicalforthem.

Guideline 8

Considerdesigningtenderdocumentstoincludeopenquestions withregardtosustainabilitywiththeassessmentpanelhavinga comprehensivelist(withweighting)ofthebenefitstheywouldbe lookingfor.Thesecouldbeadaptedtolocalcircumstancestomeet localobjectivese.g.improvedruralaccessarrangements.

Guideline 10

Considermakingagreaterpercentageofthequality/pricesplitrelated tocommunity/environmentaladdedvaluee.g.ofthe70%quality40% potentialtoaddvalue.Alsoconsiderhowtoensurethattheawarded pointsinthisareareallyassessesqualityofanticipatedserviceas opposedtoeg.financialstabilityofcontractor.

Guideline 11

Prioritisecommunity/environmentalbenefitsequallywithPerformance Indicatorsandothercontractobjectives.

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7. CASE STUDY: Cumbria County Council: a Local Authority approach to procuring for social value

Cumbria County Council illustrates how to develop a Local Authority wide approach to procuring for social value.

Background Category Strategy & Plan

CumbriaCountyCouncilhasgonefurther thanmostLocalAuthoritiesinensuringthat itmaximisesthesocial,communityand economicbenefitsofallitspublicsector spendingasamatterofcourse.In2006the Counciltookpartinanationalpilotbythe NorthEastCentreofExcellenceandtheOffice oftheThirdSector(CabinetOffice)tolookat thewideruseofsocialissuesinprocurement.

Underthisproject,theCouncilaimedto securesocialvaluebyensuringthatsocial clauseswereusedineveryappropriate contract.AtthesametimetheCouncil workedtoincreasethethirdsector’scapacity torespondtopublicsectorprocurement opportunities.AThirdSectorProgramme Managerwasappointedtoleadthework.The appointmenthascontinuedaftertheendof thepilotandtheCouncilcontinuestostriveto ensureitsspendingdeliverssocialbenefit.

Serviceownerto identifyopportunities forsocialvalue acrossallservice


Socialvalueroutinely includedastender evaluationcriteria whereappropriate

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Service Design / Specification Socialvaluetobe routinelyincludedin contractspecifications


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> How social value were secured

Approach

1.TheLocalAuthorityhasadedicatedchampion ofsocialprocurementwhoseroleistobuild upacoreofexpertisewithintheCouncil’s ProcurementandCommunityUnitsand increaseawarenessacrosstheCouncilandthe widerCumbrianprocurementcommunityon thevalueanduseofsocialclauses.Thelong-termaimisthatallthoseinvolvedinservice commissioningandprocurementrecognise thevalueofasocialbenefitapproachand takeresponsibilityforincorporatingitinto appropriatecontracts.

2.TheCouncil’sContractproceduralrulesoutline anexpectationthatsocialclauseswillbe includedinthecontractspecificationwhere appropriateandthetenderspecificationwill includesocialelementsinitsevaluationcriteria.

3.TheCouncilhasaSustainableProcurement Strategyinplacethatsetsoutthenatureand groundsofitsapproachtoprocurement.

4.Ittakesanintegratedapproachtoembedding socialvalue.Responsibilityforsecuringsocial valuedoesnotrestwiththethirdsector ProgrammeManager,ortheprocurement officers,butinvolvesheadsofservice,service managersandlegaladvisors.Thefindings ofthepilotfoundthattakinganintegrated approachwascrucialtoseeingsocialbenefit embeddedintocontracts,andakeytool forprovidingprocurementofficerswiththe supportandencouragementtheyneededto pursuesocialbenefit.

> Some things to think about …

GeorginaTernent,Cumbria’sThirdSector ProgrammeManagerdescribedsomeofthe issuesinvolvedinembeddingasocialvalue approachtoprocurementinalocalauthority.

“The first wave of contracts where social clauses have been included have been with third sector providers where services were previously run according to service level agreements and were moved to a contract basis. Working with third

sector providers gave plenty of scope to explore social benefit opportunities. The Council is now taking the approach into sectors such as health and social care.

Providing ‘ready made’ clauses doesn’t change the culture. What makes the difference is helping procurers and service commissioners understand why it matters and how it is possible and equipping them to adopt the approach as a matter of course when contracts are tendered.

Cumbria has used social clauses in a range of contracts, such as: the Local Involvement Network (LINks) (providing a voice for local people in the design and delivery of health and social care services); reactive maintenance; professional services and school meal contracts.”

Twoexamplesareincludedonthenextpage.

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> Example contracts

Children’s Centres

Cumbriahasembeddedsocialclausesinto itsChildrenCentrecontracts.Socialbenefit examplesinclude:

• Thethirdsector(i.e.notforprofit organisations)supportotherthirdsector/ communityorganisationsinreceiptof resources(e.g.theChildren’sCentreusing voluntarysectorbuildingsandservices)

• Collaborativeworkingwiththirdsector organisations

• Volunteersinvolved

• Volunteerstrained

• Addedvalue–complementaryservices beingdeliveredtothecommunityin paralleltothecontract

Whetherserviceprovidersdeliverthesesocial benefitsisassessedaspartoftheongoing servicemonitoringprocesses.Nosocial benefitdatacollectionprocedureshavebeen putinplace.

Money / Debt Advice services

ThetenderdocumentationfortheCouncil’s MoneyAdviceServicesrequiredbiddersto demonstratehowtheywouldaddvaluetothe contract.Thissectioncarriedamaximum10%of total contract score.

Tender documentation extract

Added Value Services If there are any added value services you can offer as part of your bid, please include the details in your response. We are particularly interested in seeing volunteers supported as part of the delivery of this contract, demonstration of training/learning, support to third sector organisations and partnerships with third sector organisations.

Added value will also be considered when assessing offers. For example the number of volunteers who benefit, any training delivered as part of the contract, third sector organisations who receive benefit as part of this contract etc.

Contract Award

ThecontractwaswonbyCitizensAdvice Cumbria.Volunteersdelivertheserviceand receivetrainingthatequipsthemforpaid employment.Itusescommunityvenuesfor outreachdelivery.

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8. CASE STUDY: Raploch URC

Raploch URC’s approach to procuring for social value demonstrates what can be achieved when organisations firmly embed social

benefit requirements into every stage of the procurement process.

Background Procurement

legislation

Raplochisoneofthemostdeprivedplaces intheForthValley.Industrialdeclinesaw unemploymentrocketto75%.RaplochUrban RegenerationCompanywassetupin2004 toleadthetown’sregeneration.Because ofthedearthofemploymentopportunities RaplochURCrecognisedthatthetown’s physicalregenerationwasinseparablefrom theneedtocreatelocalemploymentand skillsopportunities.Itthereforepioneered theuseofsocialvalueclausestoensurethat anycontractorordeveloperwouldprovide asetnumberoftrainingandemployment opportunitiesoverthelifeoftheproject. RaplochURCcommissionedtheR3consortium tobuild900homesintheareaoveratenyear periodatthesametimeasdeliveringarange ofsocialbenefits.

Recognisedthatits powersenableditto requiresocialvalue

as core contract requirements.

Strategic Contract Performance

SocialBenefitMethod Statementsprovided

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Needs analysis & service requirements Recognisedthevitalrole socialvaluewouldplay inarea’sregeneration

Tender Document Preparation Socialvalueembedded intoalltender documentationfrom OJEUthroughto evaluationcriteria


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The tender process

RaplochURCensuredthatsocialbenefitswere woventhroughoutthetenderprocess.

Powers&Policy:Beforeitsincorporation in2005RaplochURCdidnothavealegal identityseparatefromitspartnerbodies.The procurementwasthereforeundertakenon RaplochURC’sbehalfbyStirlingCouncil,oneof itspartners,andsocialbenefitswereprocured underitspowers.Thesepowersincludedapower topromoteorimprovethewell-beingofitsarea andpersonswithinthearea.

First Notification

TheOJEUNotice,atanestimatedvalueof£75m fortheworks,includedthefollowingstatement onsocialvalue:

The partner will be expected to embrace the concept of sustainable development and community benefit and will be required to work with the partners to deliver employment/training opportunities and other Community Benefits.

TheOJEUmadeitclearfromthestartthatsocial value,particularlyemploymentandtraining opportunities,werecentraltothedevelopment.

Tender Documentation

Thetenderdocumentationcontinuedto emphasisetheimportanceofsocialvalue.

Briefing contractors:abriefingmeetingwas heldatwhichRaplochURChighlightedthe importanceofthesocialvaluerequirementand gavebiddersthechancetoclarifyanyquestions.

The PQQincludedaquestionaboutbidders’ experiencesofdeliveringsocialvalue,including experienceof:

• Supportingeconomicdevelopment

• Communityconsultation/capacitybuilding

• Trainingandemploymentopportunities

• Partnershipworkwithlocalpeopleandother appropriatelocalagencies

ThePQQswereevaluatedbyamulti-disciplinary panel.Thethreeapplicantswiththehighest scoringresponsestothePQQoverallwerealso thehighestscoringinrelationtothesocial valuequestionsandtheywereinvitedtotender forthecontract.

Proforma Method Statementswereincluded inthetenderpack.Theycoveredemployment, training,equalopportunities,socialenterprises andsmallbusiness.Forexample,bidderswere askedto:

Describe the steps that will be taken to ensure that suitable applicants from Employment Connections, Employ Ability Stirling, Job Centre Plus, Triage Central Ltd., Youth Services, Careers Scotland, Breaking the Mould and the Raploch Community Enterprise are interviewed by the prospective employer.

Thisensuredthatarangeofpeoplewereprovided withtheopportunitytoaccessemployment.

Bidderswerealsoaskedtodemonstrateintheir methodstatementtheirmonitoringandreporting plansfortherelevantsocialbenefitsaswellas howtheywillensuresub-contractorcompliance, andinsurances.Theseelementslookaheadtothe monitoringandreportingclausesinthecontract.

A disclaimerwasalsoincludedtoensurethat RaplochURCcouldnotbeheldresponsiblefor anyfailuresonbehalfofcontractorstodeliveron thesocialbenefits.

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The inclusion of community benefit requirements does not comprise or imply any promise on the part of the Employer or their agents or the Raploch Partnership (Shadow URC) to provide suitable trainees or labour. Within this context the employer and the Raploch Partnership will work with agencies to help facilitate the achievement of these community benefit requirements.

Evaluation Criteriawereclearlyspecified andincludedinthetenderdocumentation. Thesocialvaluescoreswereweightedas10% oftheoverallscores.Inviewofitspriority, thehighestweightingwasallocatedtothe trainingandrecruitmentelements.The commissionersthereforeensuredthatthese priorities,highlightedattheoutset,remainedso throughoutthetenderprocess.

Contract clausesweredrawnupusingthe MethodStatement.Thisensuredthattherewas continuitybetweenthebenefitrequirementsset outintheOJEUNoticeallthewaythroughto thefinalcontract.

Theinclusionofmonitoring and reporting method statementsprovidedaframeworkfor howthesocialbenefitswouldbemonitored.

> What social value was delivered?

Throughtheprocurementprocessthesuccessful developer,R3(aCrudenHomes/GeorgeWimpey consortium)signed-upto:

• 225TrainingandEmploymentnewentrant placesoverthe10-yearprogramme;

• Supportandmentoringforsmallbusinesses;

• Ring-fencing£2millionforsuitable sub-contractingworks

• Supportandmentoringforsocialenterprises –£900Kring-fencedtotakeforwardprojects

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9. CASE STUDY: Glasgow Housing Association

Like Raploch URC, Glasgow Housing Association achieved significant outcomes by embedding social value requirements

in the tender process from the outset.

Background

GlasgowHousingAssociation(GHA)isone ofthelargestsociallandlordsintheUK. IttookonGlasgowCity’shousingstockin 2003,receiving80,559housingunits.One ofthekeyobjectivesofthetransferwasto secureinvestmenttocontributetoareaand communityregenerationandsocialinclusion. Theinitialinvestmentwasfor£750million overfiveyearscommencing2005-06.

Procurement legislation

Understoodthatits powersgaveitscope torequiresocialvalue

as core contract requirements


SocialvalueKPIs e.g.training&

employment,enable GHAtoreviewa contractor’ssocial valueperformance

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Tender Document Preparation Socialvalue embeddedintoall tenderdocumentation


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The tender process

GHA’spowerspermitittopromoteorimprove theeconomic,socialorenvironmentalwell-being ofitsresidents(orresidentsandotherpersons) andtheareainwhichthehousesorhostelsit providesaresituated.Itthereforesetoutits socialvalueexpectationsatthestartofthe tenderprocess.

OJEU

TheOJEUnoticeincludedreferencetothesocial valuerequirementsofthecontract:

“Under this contract/ these contracts, the contractor/supplier will be required to support the awarding authority’s economic and social regeneration objectives. Accordingly, contract performance conditions may relate in particular to social and environmental considerations.”

Tender Documentscontinuedtohighlightits socialvaluerequirements.

i) Briefing contractors:A‘contractor’s conference’washeldwherebiddersheardabout theemploymentandtrainingrequirementsand hadtheopportunitytoaskquestions.

ii) The PQQsoughtinformationonbidders; apprenticeshipandtrainingactivity;recruitment andtrainingofyoungpeople;adultreturnsand theunemployed;willingnesstoinvestintraining; thecontractmonitoringarrangementsfor trainingandthepersonresponsiblefortraining inthecompany.Ascoringframeworkwasused toassessresponsestothePQQquestions.The trainingandemploymentquestionscarried 10%oftheavailablescoretoensurethatonly contractorswithrelevantexperiencewereinvited totender.

iii) A Method Statementwasrequiredfrom biddersthatdetailedhowtheywouldensure:

• Everyvacancynotifiedtoagenciesnamed byGHA

• 10%ofpersonweeksdeliveredbynew entrantsengagedinatrainingprogramme

• 5%ofpersonweekstobeavailablefor unwagedworkexperienceplacements

• Monitoringandverificationprocedures

• Provisionofreportsonperformanceagainst statedKPIs

Evaluation

Ascoringframeworkwasdevelopedand tested.Theemploymentandtrainingmethod statementsectionwasallocatedbetween5%and 12.5%ofthe‘qualityscore’,whichequatedto approximately1.5%and3%oftheoverallscoring framework.BoththePQQtrainingelementand theTenderMethodStatementwerescoredby membersofGHA’sRegenerationTeamwhohada goodunderstandingofconstructiontrainingand theneedsofthetargetcommunities.

Monitoring

GHAhaveevolvedtheirmonitoringrequirements overtimetoreflectconcernsaroundthetime ittakestocollectthedata,challengesaround verifyingthedata,andensuringthatmonitoring systemsdonotplacetoomuchofaburdenon contractors.

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GHA’ssocialbenefitsprojectisseenasthe mostsignificantuseofemploymentandtraining requirementsinconstructioncontractsinBritain (ScottishGovernment,2008).Overitsfirst30 monthsGHAachieved:

• Over12%ofemployeeswerenewentrants

• 10,399person-weeksofapprentices

• 2,642ofperson-weeksoftraining

Theseresultswerealsocostneutral.The contractorshavebeenrequiredtoobtainthe resourcestheyneededtomeettheemployment andtrainingtargetsbydrawingonexisting managementandsupervision,obtainingexternal fundingandencouraginggoodproductivityfrom trainees.Thishasmeanttherecruitmentand trainingoutputsaretruly‘added-value’aswell associalvalue.

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10. CASE STUDY: Islington Building Schools for the Future

This case study demonstrates how Islington Council used the Competitive Dialogue Process to secure stretching local social value

requirements from its Building Schools for the Future contractors.

Background

Islington’sBuildingSchoolsfortheFuture (BSF)programme,partofthenationalBSF programme,wasa£140million,fiveyear schemetotransformeightoftheBorough’s tensecondaryschools,aspecialeducational needsschoolandapupilreferralunitinto firstclasslearningenvironments.Islingtonwas keentotakeadvantageoftheBSFprogramme bothtointermsofitseducationprogramme andintermsofthewiderbenefitstothe local area.


Deliverywasassessed againststretching KPIssupported bycontractors’

senior team

Tendering Madeuseofthe

CompetitiveDialogue processtosecure

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The tender process

OJEU and Pre-Qualification

TheOJEUwasdesignedasbroadlyaspossible tocoverarangeofactivities.Potentialbidders submittedaPre-QualificationQuestionnaire whichwasassessedaccordingtothepotential contractors’economicandfinancialstandingand technicalcapacityandabilityofthebidders,with specificreferencetopartneringexperience.

Competitive Dialogue

Pre-qualifiedbidderswereinvitedtoenterinto acompetitivedialogueprocesswhichinvolved discussionsconcerningbidders’proposed solutionstothelocalauthorityandschools’ requirementsforallaspectsofBSF.

Duringthecompetitivedialogueprocessbidders wereencouragedtoofferthesocialbenefitsthat theyfeltbestsuitedtheprojectandtheAuthority’s needsandrequirements.Theywerenotpre-specifiedbutwerecoveredinSectionD‘other’. Thisensuredthatthesectorofferedmaximum socialbenefitsinordertosecureacompetitive advantageoverrivalbidders.

Contract

Onceagreed,thesocialbenefitswerecapturedin Schedule14oftheProjectAgreement,whichwas developediterativelywiththeprivatesectorand contractors.

BalfourBeattyconstructionasthemain contractorandtheirsupplychainwererequired tofinancealltheirowntraining.

Implementation and monitoring

Allseniormembersoftheconstructionteam, fromcommercialmanagersthroughsitemangers toengineeringprojectmanagerswerecommitted toandinvolvedinachievingthesocialbenefit requirements.


IntheconstructionelementtheBidderwas requiredtoachieve:

• 50unskilledworkersaccessingconstruction skillstrainingperyear–50%ofwhom willbeeitherIslingtonresidentsorfrom adjoiningboroughsandfromanunemployed background

• 28learnersmovingintoapprenticeshipswill beprovidedforphase1schoolsmanagedby LBIConstructionworksProjectandcompleted byphase3

• 600unskilledworkerstohaveaccessto constructionskillstrainingoverthelifeofthe projectperyearuntilthecompletionof phase3

• 15experiencedworkerstogainanNVQ 3peryear

• 500upskilledworkersgainingaqualification overthelifeoftheproject(indicativetargetof 120peryearover5yrs)

Inbuildingservicesthecontractrequired:

• 20tradeapprenticesintotaloverthethree phasesoftheproject.

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Who can I contact for more information?

Ifyouwouldlikefurtherinformationonthisstrategypleasee-mail:[email protected] Tospeaktosomeonepleasecall020 8726 6000andaskfortheCommissioningandProcurementTeam.

Designedbycroydondesignthein-housebusinesswithinCroydonCouncilenquiries@croydondesign.com120428

Inspiring and Creating Social Value in Croydon: A Social Value ...

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