croydon toolkit

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


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Inspiring and Creating Social Value in Croydon

A Social Value Toolkit or Commissioners

Contents

4. Case Studies Page 33

1.CCURVESkillsandEmploymentGroup2.GrampianHousingAssociationandSolsticeNurseries3.LiverpoolCityCouncilandBulkyBobs4.WakeeldMetropolitanBoroughCouncil5.CamdenCouncilandMentalHealthDayServices6.TheDevonSustainabilityMatrix7.CumbriaCountyCouncil8.RaplochURC9.GlasgowHousingAuthority10.IslingtonBSF

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Page 40Page 42

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1. Introduction Page 4

Whatisthistoolkitfor? Whatissocialvalueandsocialbenet? Whatdoesthislooklike? Whydoitandwhen? WhyisCroydonCouncildoingthis?

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2. Think and rethink what you are commissioning Page 11

Theapproachtocommissioning Thecategorycycle Workingtogetheroncategorymanagement

Page 11

Page 12

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

Route1:AwardCriteriaMethodology Route2:PerformanceObligationsMethodology Page 21Page 27

Contents | 3


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Introduction

What is this toolkit or?

ThistoolkitisentitledInspiringandCreatingSocialValueinCroydonandthisisexactlywhatweintendtodo.ItshouldbetakenastheclearestpossibleindicationthatCroydonCounciliscommittedtomaximisingthesocialvalue,orsocialbenetavailablefromitscommissioningandprocurementactivities.InourCommissioningStrategy2012-15wesetouttheresponsibilitywesharewithallpublicservicestoconstantlyndmoreeffectivewaysofmakingpublicmoneydeliverbetteroutcomesandtoimproveoutcomesinthemostefcient,effective,equitableandsustainableway.TherehasneverbeenamoreimportanttimethaninthecurrentchallengingeconomicandsocialclimatetomakesurewetietogethertheopportunitiestheCouncil,businessandthethirdsectorshaveforworkingtogethertothatend.Commissioningistheprocessfordecidinghowtousethetotalresourcesavailableinordertomeetthatchallenge.AsCroydonCouncilmovestowardsbecomingacommissioning-

ledauthority,commissioningistakingupitsplaceastheprimemeansofdeliveringontheaspirationsoftheCouncilandthecommunity.

TheStrongerCommunitiesStrategy(2011-15)setsouthowwearecontinuingtobuildstrongandactivecommunities.Itstatesthatthereareopportunitiestodoevenmoretoencourageanevenstrongercommunitytoourishandrecognisestheimpactthatcommissioningcanhaveinachievingthisaim.Commissioning,andparticularlytheprocurementprocess,hasnottraditionallybeenseenasaninherentlycreativecycleofactivity.Thistoolkitchallengesthatperception,offeringawayforwardforcommissioningand

procurementasatooltoinspirenewthinking,toharnessco-creationandtodeliveradditionalsocialvalueinallwedo.ThistoolkithasbeencreatedtosupportCroydonCouncilandpotentialprovidersofservices,inanysectorincludingsmalltomediumenterprises,socialenterprisesandvoluntarysectororganisations-toembedsocialvaluethroughprocurementprocesses.Thetoolkitprovidesguidanceparticularlytoservicecommissioners,categorymanagers,procurementofcersandthoseadvisingthemonlegalissuesonhowwecanderivesocialvaluefromprocurementactivity.Itsetsoutdifferentoptionsavailabletocommissionerssotheycanestablishwhatsrightforthem.

Thisdocumentwillprovideyouwithadviceontheprocessandbestpracticeprincipleswhentryingtoleveringreatersocialvalue.DuetothewiderangeofservicesprovidedbytheCouncilthereisnoonesizetsallmodeland,assuch,thisdocumentshouldbeconsideredalongsideadvicefromtheCommissioningandProcurement,Legal,CommunicationsandHRteamstoensurespecicserviceordepartmentalneedsarefullyconsidered.Thereisalsoastep-by-stepAwardCriteriamethodologytofollowthroughfrompre-procurementstagestoContractManagement.Theemphasisinthistoolkitisonthepractical.Itaimstoprovideanswerstothequestionsaboutwhereandwhenwecanlookforopportunities,atwhatpointsintheprocess,toquestionsaboutwhatwordingtoincludeandthelegalandfairnessquestionsthatcanariseandoftenworkagainstdoinganythingdifferent.Thewaywedothisisbyshowinghowthishasworkedinpracticethrough10casestudies.Manyoftheseinvolvethirdsectororganisations,includingsocialenterprisesandalloftheminvolvebuildingarelationshipbetweencommissionerandpotentialproviderandcreatingaconnectionwiththecustomer.

4 | Introduction
http://www.croydon.gov.uk/contents/departments/community/pdf/cscshttp://www.croydon.gov.uk/contents/departments/community/pdf/cscs


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What is social value?

Forthepurposeofthistoolkitwehaveused thedenitionofsocialvalueascreatedbyThe SustainableProcurementTaskForceandwidelyusedinScotland,WalesandEngland.Theydene itas,aprocesswherebyorganisationsmeettheirneedsforgoods,services,worksandutilities inawaythatachievesvalueformoneyona wholelifebasisintermsofgeneratingbenets tosocietyandtheeconomy,whilstminimisingdamagetotheenvironment.Thinkingsocialvalueshouldshiftthefocusfrom thebottom-linepriceorcostofaservicetowards theoverallvalueoftheoutcomesdelivered. Howaserviceisdeliveredistakenintoaccount alongwithwhatisdelivered.Thirdsector organisations,charitiesandsocialenterprises oftenhaveelementsofasocialvaluehard-wired inthem,and,asthecasestudiesshow,thishard-

wiringcangivethemacompetitiveadvantageoverprivatesectororganisationswhenitcomes toassessingtheoverallqualityofthebidwhenit takesaccountofsocialvalue.

What is social beneft?

Socialbenetistheoutcomeofthisprocess ofachievingsocialvalue.Itcanmeansomany differentthingstosomanydifferentpeople.As alocalauthorityCroydonmakesdecisionson socialbeneteverysingleday.Decisionsabout commissioningaparticularservice,orfunding aprojectinaparticularareafocusingona particularneedorrequirementintheCouncil areacanallcreateanddeliveranadditional socialbenet. Theseadditionalbenetscantakealmostany form,rangingfromtheverytangible,suchasjobsforthelong-termunemployed,orsub-contracting opportunitiesforsmallbusinesses,tosofter,butequallyimportant,benetssuchasengagement withcommunitiesorgroupsofindividualswho mightotherwisefeelentirelydisengaged.Doing soalsosupportstheCouncilspublicsectorequalityanddiversityduties.Deningsocial benetislessimportantthansecuringit.

What does it look like in practice?

Youcanusesocialbenetstobringlong-termgoodtotheBoroughby: Creatingskillsandtrainingopportunities(e.g.

apprenticeshipsoronthejobtraining); Creatingemploymentopportunitiesforthe

long-termunemployedorNEETs(thosenotineducation,employmentortraining);

Offeringworkplacementstoschoolchildren andyoungadults;

Providingcareeradviceandinformationfor youngpeopleonspeciccareers,suchasconstruction,architectureorengineering;

Offeringcurriculumsupporttoschools,with contractorssharingknowledgeandexpertise abouttheirdiscipline;

Providingadditionalopportunitiesfor individualsorgroupsfacinggreatersocial oreconomicbarriers.

CreatingsupplychainopportunitiesforSMEs

andsocialenterprises;

Creatingopportunitiestodevelopthird sector organisations.

Improvingmarketdiversity; Encouragingcommunityengagement;

Introduction | 5


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Supportinginitiativesliketargetinghardtoreachgroups;

Makingfacilities(suchasschoollibraries, leisurefacilitiesorcomputers)availabletotargetedgroupsthatotherwisewould struggletoaccesssuchfacilities;and

EncouragingethicalandfairtradepurchasingWhy do it, and when?

Becauseitsnothardandbecausetheoutcomes areworthit!Itseasytodismisssocialvalueprocurementasbeinginthetoodifcult category,butitcanmakeagreatdifferencetopeople,servicedeliveryandthebottomline. Requiringcontractorstodeliversocialbenets whiletheydeliverthemainelementoftheir contractmeansthatCroydonbenets.Wegetmore,bothdirectlyandindirectly,forourmoney.Beingsuccessfulatgettingthebestsocialvalue fromcommissioningandprocurementisawayofworkingthatneedstobeadoptedandlearned. Itispartoftheskill-setandknowledgesetthat weidentifyasbeingpartoftheCroydonexpert commissionercompetencies.TheCabinetOfcereferstheseasidealcommissioner competencies.

Asyouworkthroughthistoolkityoushould identifyoneconsistentmessageinordertosuccessfullysecuresocialvalueandbenet throughyourcommissioningandprocurementprocesses,youneedtothinkaboutitfromtheoutsetandembedaclearandunambiguous messageaboutyourintentiontodosoevery

timeyoucommunicatewiththemarket. Thereshouldbeabsolutelynodoubt,internally orexternally,thatoneofthecoreobjectives ofthecommissioningorprocurementexerciseistodeliverthegreatestsocialreturnfromtheinvestmentpossible.Why is Croydon Council doing this?

>This is important to usAswesayinourCommissioningStrategy,effectivecommissioningisimportantbecause around340m(or34%oftotalbudget)is spentexternallyeachyearcommissioningand procuringgoodsandservicesfromthirdparties. Around5%ofthatamountisspentwiththethird sector.Gettingcommissioningright,therefore,isimportantinordertoensurethatwecontinueto delivertherightservices,tothepeoplethatneed themmostanddeliverthegreatestimpact.

>We need to get the best value romour purchasing

Croydonhasalwayspunchedaboveitsweight. Asaleadingedgeorganisation,theCouncilhas alreadytakendifcultdecisionsbuthasprotected servicesthroughanambitiousprogrammeofunprecedentedchangetoensureCroydonsucceedsinaneweconomicclimate.Inthelast 12months,theCouncilhasmade30millionin savings-twothirdsofthishasbeenachievedthroughefciencies. Tomeetthechallengesahead,theCouncilmusttransformasanorganisationandpursuenew,andpotentiallyradical,solutionstomakepublic moneydeliverevenbetteroutcomes.Thistoolkitisakeypartofthatstrategy,andwillensure processesareformalisedwithintheCouncil sothatsociallyresponsibleandsocialvalue procurementtakesplace.

6 | Introduction


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

TheCouncilaimstoensureaconsistentapproachtocommissioningdevelopsacrosstheBorough.Wewillworkwithpartners,includingprovidersinallsectorsandusersofservices,toensurethat expertcommissioningbehavioursareadopted widelyandmodelledinordertosecurebetter outcomesforthepeopleofCroydon >Social Value policy and legislationThelawhaschangedandthereisnowan additionaldutyonustodothis.Weareincentivisedtosecuregreatersocialvaluebyrecentlegislativeactivity.ThePublicServices(SocialValue)Act2012cameintoforceearlier thisyear.Publicauthoritiesarenowrequiredtoconsider,priortoundertakingtheprocurementprocess,howanyservicesprocured(whethercoveredbythePublicContractsRegulations2006orotherwise)mightimproveeconomic,social andenvironmentalwell-being.TheCouncilismakingsignicantcapital investmentininfrastructureandregeneration

in2012/13:73misestimatedtobespenton improvingassetssuchaseducationbuildings;27mwillbespentonimprovingplaces,including highwaysand8mistobespentontransforming ourICTandbuildings.

The Equality Act 2010bringsnewstatutory dutiestoCouncils.Intheexerciseofitsfunctions,theLocalAuthoritymusthave dueregardtotheneedto:advanceequalityofopportunitybetweenpeoplewhosharea protectedcharacteristicandthosewhodonot; eliminateunlawfuldiscrimination,harassment andvictimisationandotherconductprohibited bytheActandfostergoodrelationsbetween peoplewhoshareaprotectedcharacteristicand thosewhodonot.TheCouncilmust,therefore, notseektojustassesstheimplicationsofall commissioningdecisionsincommissioningregardingtherisktogroupsofpeoplebutmustlookforopportunities,suchassocialvalue,to advanceopportunitiestothosepeople. >We want to help Third Sector to thrive

and to do more

TheGovernmentsOpenPublicServicesWhitePaperproposesreformsthatwillallownon-

publicproviderstorunschoolsandotherpublic services.Thisincludesthethirdsectorandsmall tomedium-sizedenterprises(SMEs).Thethirdsectorcanplayapowerfulroleintransforming theservicelandscapebringinginnovation,value formoneyandinherentsocialbenets.

WellbeingRegeneration,Carmarthenshire,describedonpage14,isonesuchexample.What startedasaresponsetoalackofaffordable footcarehasburgeonedintoathrivingsocial enterprise,identifyingandrespondingtoarangeofcommunityhealthandsocialneeds.Inthe casestudies,Mid-DevonCommunityRecycling(MDCR)onpage45alsodemonstratesthe capacityofthethirdsectortoinnovate.MDCR approachedthecounciltostartakerbrecycling schemewithagroupofvolunteerstoshowthat itcouldbedone.AsMDCRgrewtheyalsodemonstratedthatitwaspossibletodelivertheserviceinaway thatcreatedopportunitiesforthelong-term unemployedandusedsustainabletransport. TheSocialValueActisnon-prescriptive,andtheextenttowhichisittakenintoaccountwill probablyvaryfromcounciltocouncil.Ithasbeen arguedthattheActwillberelativelyeasyto circumvent.CroydonCouncilwantstoembracesocialvalueand,therefore,willensuresocial valueisnotanotherlegislativehoopforthe Counciltojumpthrough.

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TheCouncilexplicitlyacknowledgesthevalue-

drivennatureofmostthirdsectororganisations, whichoftenrepresentsitsuniquesellingpoint. Thismeanstheyaremotivatedbythedesiretoachievesocialgoals(forexample,improvingpublicwelfare,theenvironmentoreconomic well-being)ratherthanthedesiretodistribute protandwillreinvestanysurplusesgeneratedinthepursuitoftheirgoals.Forthisreason thirdsectororganisationsaresometimescallednot-for-protorganisations,although inmanycasesthirdsectororganisationsneed tomakesurpluses(orprots)tobenancially sustainable.Someofthekeybenetsofthirdsector organisationsinclude: Thesocialcapitalgeneratedthroughtheuse

ofvolunteering Localrootsinthecommunityandthe

communityprideandpersonalself-worththat canbegenerated

Accesstowidersocialcapital(e.g.community socialnetworks)

Otherfundingleverage(e.g.matchedfunding fromcommunitypots)

Theopportunityforcommunity-leddesignand co-productionpractices

Thecontributiontothelocaleconomy thatputtingfundingintothevoluntaryand communitysectorcanbring

Helpingthethirdsectorthriveanddomore meansincludingthesectorinallmainstream commissioningandensuringthirdsectororganisationsallhaveameansofdemonstrating thesocialvalueoftheworkthoseorganisations do-howthesocialgoodstheyproduceoffer measurablesocialvalue,whichwillstrengthen theirbusinesscase.Section3ofthistoolkitmakesexplicitthe commitmentCroydonCouncilwillmaketointegratingsocialvaluewithinthescoring systemofawardevaluationandunderwhat circumstancesamoreopendialoguewillbe appropriate.>We have made a commitment to Corporate

Social Responsibility

Wehavealreadymadeacommitmentto

aCorporateSocialResponsibility(CSR) programme.CSRrepresentsapotentialtoolforustofacilitateinvestmentinlocalcommunities throughourmajorproviders.Thetoolkitwill enableustoincludeactionssuchasproviding workexperienceforlocalunemployedpeople

whendeliveringservicesorbuildingcapacityin localthirdsectororganisations. Thistoolkitissupportedbyspecicguidance publishedbyCroydonsWorkforceandCommunityRelationsdirectorate(CommissioningandProcurementPolicyforJobsandSkills) >We want to deliver sustainable outcomes

and meet community needs

Thetoolkitwillhelpusfurtheroursustainable procurementobjectives,whichmeanswecanmeettheneedsforgoods,services,worksand utilities in a

waythatachievesvalueformoneyona wholelifebasis.Wewanttomeetthecommunityneedsandsowewanttoincreasethechancesoflocalpeople benetingfromregenerationprogrammes.Thetoolkitwillhelpustoincreaseopportunitiesfor apprenticeshipsandlocallabour.Wewanttomeasuresocialimpacttheactualeffectofouractivitiesonthelocalcommunity andwell-beingofindividualsandfamilies. Thiswillbemeasured,forexample,intermsofchangesinlevelsofemployment,health, education,economicregenerationandsoon.

8 | Introduction


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Think again

GMProcurehasatargetof52weeksemploymentforanewtrainee

foreach1mincontractlabourcostonDecent Homesstandardframeworkcontracts,andisontargettoachievethisinthesecondyearofcontractdelivery equivalenttoabout10%

ofthetotallabourrequirementAtKingscrossCentral,a

twelve-yearmixedcommercialandresidentialdevelopment,thedeveloperhas

acceptedaPlanningAgreementrequirementthat7.5%ofthetotalconstructionlabourrequirement willbedeliveredbynewtraineesrecruited

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

candidates,exoffenders

Provideplacementsforuniversitystudents

ProvidingopportunitiesforNEETS youngpeopleNOTinemploymentTrainingEducation

InIslingtonBSFSchoolsthe DesignandBuildcontractoriscontractedtoengagenearly100apprenticesovertheve

yearprogramme

InShefeldtheHousing ALMOisontarget,over7years,todeliverandexpectedtotaloutputof

1500localjobs/trainingplaces

Provideguaranteedinterviewsfortargetgroups e.g.

longtermunemployed,schoolpupils,returningtoworkadults

Provideopportunitiesforsocialenterprisestobecome

partofthesupplychain Providemeasurable

improvementsofupscalinginworkforce

Introduction | 9


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Think again

Intheearly1990satWalthamForestHousingAction

Trust20%oftheperson-weeksrequiredtodelivernewbuildsocialhousingwas beingdeliveredbynewtraineesrecruited

fromtheEstatewheretheworkswerecarriedout

BetweenMay2008andJune 2009theOlympicDeliveryAuthority

lledover500jobsbylinkinglocalbrokerage withODAContractors.Thebrokeragegiveslocalpeople48hourtoaccessjobsbefore

theyareadvertisedmorewidelyAstudyofveconstructionprojectsinnortheastEnglandthat

usedcontractualleverageidentiedan averageofonenewtraineeper750,000

onconstructionspend

Provideworkexperiencefortargetgroups Provideopportunitiestobecomepartofthesupplychain

Oneducationalprojects: provideinputtocurriculumdevelopment throughsupportlearningin

keytopicareas

InEastLondonRailProjectnearlyonethirdofthesuppliers tothemainJVcontractorare

local target areas

UptakeofapprenticeshipsAchievehighscores

onConsiderateContractorScheme

Runworkshopsfortargetgroupsonkeyareasofskill sustainability,designetc

10 | 2.Thinkandrethinkwhatyouarecommissioning


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2. Think and rethink what you are commissioning

The approach to commissioning

IntheCommissioningStrategywerefertothecategorywheel(overleaf)todescribethestagesinvolvedincommissioningandcategorymanagement.

Anexpertcommissioner: Reviewsthestrengthsandperformanceof

currentproviders;

TheWhitePaperonOpenPublicServices,launchedinJuly2011,supportsourthinklocalobjectives.Thepaperhasvemainobjectives:

1

Think and rethink what you are commissioning

2

Choose your procurement route

Understandscurrentneeds,prioritiesandmarkets;

Challengesexisting,andreviewsalternativeservicedeliverymodels;and

FocusesonoutcomesTodeliverrealsocialbenetanexpertcommissionermustthinkdifferently.Thatmeansinterrogatingwhatwehavealwaysdone,whatwearedoingandaskinghowcouldwedoitbetter?Itmaywellbethattheproviderwehaveusedinthepastcontinuestobebestplacedtodeliveragainintothefuturebut,together,weshouldchallengeallexistingassumptionsagainsttheCouncilsandthecommunitysaspirations.

Award Criteria Perormance Obligations

Create, manage, record outcomes

Further detail on page 20.

2.Thinkandrethinkwhatyouarecommissioning | 11


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Ser vice Needs & Bus iness

RequirementsReview

&

Se rv

i

i



The Category Cycle

ThecategorywheelensuresthatCroydonscommissioners,categorymanagersandprocurementteamworktogetherto deliverthebestserviceoutcomesforCroydonresidentswithintheresourcesavailable. Ateachpointofthecategorycyclethereisachallengeopportunitytoensuresocialvalueisconsideredandembedded.

Procurement Legislation

Areyoumakingthemostofthepowersyouhaveandofthescoperecentlegislationgivesyou?

LookatwhatGlasgowHAachieved(Page55).

Contract Review

Isthisachancetodothingsbetterbyextracting

socialvalueoropeningupaccesstocontractsforSEsandSMEs?WakeeldDistrictCouncil(Page40),LiverpoolCouncil(Page

38),CamdenCouncil(Page42),andDevonCC(Page45)andpartnersusedthe

contractreviewmomenttothinkagain.

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Catego

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Busine

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CroydonCouncil

Needs analysis &

business requirements

Haveyoufullyscopedtheneeds?RaplochURC(Page52)understoodthatitneededtosecuresocialbenetstosupporttheareasregeneration.IslingtonBSF(Page58)sawtheregenerationopportunitiesinitsschoolbuildingprogramme.

Category Strategy Plan

Areyouseeingsocialbenetsaspartofabiggerpicture?Cumbria CC(Page49)sawthepotentialtoincludesocialbenetsacrossallcontracts.

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Working together on category

managementInordertogetthemostsocialvaluefromcommissioningwemust,therefore,thinkandrethink,identifyingthechallengeopportunitiesintheCategoryCyclewhichenableallinvolvedtoaskthefundamentalquestionsandbegintheprocessof,possibly,re-imaginingaservice.TheCategoryWheelsetsouttheCategoryCycleandtheinterfacebetweenthecategorymanagerandservicecommissionerateverypointinthecycle.ThechallengeopportunitycomesatkeypointsintheCategoryCycle.Theroleofbothistochallengeandsupporttheservice,andwhereverpossible,toincludeserviceusersinthatthinking.Thesynergybetweenthecategorymanagerandtheservicecommissionerastheyinterrogatethethinkingbehindidentiedneedsandtheservicesthatmaymeetthoseneedsmaybethesourceofexcitingnewthinkingandnewapproaches.AnaddedvalueofacategorymanagementapproachisthatothercategorymanagersormembersoftheProcurementTeammayencouragethecategorymanagertothinkbeyondtheirowncategoryandre-

envisionservicesacrossanumberofcategories.Anythingispossible.

EXAMPLE: Rethinking Meals on Wheels

Youarelookingatre-tenderingyourmealsonwheelsservice.Youcouldputitouttotenderwiththeusualrangeofcontractorsor,youcouldaskwhatarewereallytryingtoachieve?Why are we doing this?

...toprovidegoodqualityfoodforhouse-bound,frailorinrmpeople?Or...justtomakesurepeopleeat?Or...toreduceisolationandsocialcontact?Or...tomeetrequirements/legislation?Or...weknowthecurrentcontract runs out in ...Or...wedon'tknowanymore

What else can we achieve or

those stakeholders?

Benetentitlementchecks?Basiccommunityhealthcaree.g.podiatry,dressingchange,nutritionandhydrationcheckstoavoidunnecessaryhospitaladmissions?Localtransport?Socialnetworkse.g.fortnightlyormonthlygroupmeal?

What about other outcomes?

WorkplacementsincateringTraining/qualicationsincatering

Communityandsocialcare

placementsDevelopcateringservicesforothersectorse.g.schoolstocookmealsonwheels;catering contract for a social

enterprisecafe



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From Foot Care To Mobility

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

WellbeingRegenerationisaSocialEnterprise,setupasaresultofafootcarepilotproject,commissionedbyapartnershipbetweentheNHSPodiatryService,thelocalauthority,the50+Partnership/StrategyforOlderPeopleandtheCarmarthenshireLocalHealthBoard(nowHywelDdaHealthBoard).Itexistedinitiallyasaresponsetothelackofaffordablefootcareforelderlypeople.Ithassincedevelopedawideportfoliobasedonitsunderstandingoftheimpactofreducedmobilityandlackofexerciseonindividualsphysical,socialandmentalwell-being.Ithasthereforedeveloped:Appropriateshoesellingservices,withassociatedrevenuegenerationandincludesttingandadviceTherapeuticservicesfrommassageandreexologytophysiotherapyandcognitivebehaviouraltherapyLeisureactivities,likeartsandcrafts,luncheongroupsandTaiChiAsign-postingservice,throughsatelliteclinics,whichhelppeopleaccessinformationonbenetsandentitlementsTherehasalsobeenpilotcommunitydeliveryofphlebotomyservices(bloodcollectionandanyalysis)developedinpartnershipwiththelocalhospitalasaresponsetolongqueuesattheHospital.Therearefutureplans,inpartnershipwithalocalhealthboard,toprovidelowlevelinterventionsforhearingaids,batteryexchange,replacingtubingandprovidinggeneraladviceandatriagefacility.



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Opportunities checklist

Ask Act

Stop Whyarewedoingthis? Pauseandframethequestionsyouknowyouneedtoask.Lookatthisprocessandworkoutwhatelementswillhelpyouto're-imagine'theserviceyouarelookingtoprocure.

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

Reallyinterrogatetheserviceyouaimtoprocure.Youwanttogetbacktothebasicsaboutwhyyouareprovidingtheservice,whatoutcomesyouwanttoachieve,howyoucanachievethemandwhatelseyoumightbeabletoachieveontheway.Theexamplesuggestssome waystointerrogateprovisionofthemealsonwheelsservice.

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

Talk to...ColleaguesinCroydonfromotherservicesectors;Yourlocalthirdsector,socialenterprisesandotherprovidersTalktoinnovators,entrepreneurs,challengers,andstakehoIders Research...Dotheresearch.Usetheinternetorcontactstondoutwhatotherpeoplearedoing.Whathasworked?Lookatcasestudies,bestpracticereports,publications,socialenterpriseguides,mainstreamandthirdsectorserviceproviderwebsites...TheexampleofSocialEnterpriseWellbeingRegenerationgivesyouaavourofhowservicescanbecompletelyre-thought,andunlikelyservicespairedtogether.Conductresearchwithserviceusers-whataretheirneedsreally?Think ...Whoelsecouldbringanewperspective?Whereelsecouldyoulook?



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Ask Act

Re-

Imagine

Whatcoulditlooklikeif...?Whatcoulditlooklikein5yearstime?Whatif...?

Get good brains together

Gathertogetherpeoplewhoarelike-mindedandthosewhoarentlike-mindedandstartstorming.Toolstohelpyoutalkandthinkmightbe:SharingndingsfromyourresearchVisitstoinnovativeserviceprovidersVisitingspeakerswithbestpracticetoshare;andBrainstormingworkshops-bringinafacilitatororasksomeonefromanotherpartoftheLAorotherorganisationstofacilitate.Afresheyeisusuallyinvaluable.

Re -

Specify

Weretheoutcomeswestartedwiththeoneswereallywanttoachieve?Whatdoestheservicereallylooklikenow?

Gobacktothecategorycycleanddeveloparevisedneedsanalysisandsetofbusinessrequirements.



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3. The procurement steps to achieving good quality social benefts

Choose your procurement route

Thekeytosuccessfullydeliveringadditionalsocialbenetthroughourcommissioningorprocurementprocessisensuringthatsocialbenetsareatthecoreoftheprocesses.Identifyingthemasoneofthekeydriversofanexercisemeansthatyouhavetheopportunitytosculpttheprocessyouareabouttocommenceinordertosuittheissues(socialandotherwise)whichyouwishtoaddressthroughtheinvestment.PotentialbiddersshouldbeinnodoubtastowhatCroydonhopestoachieve.Ourenthusiasmforaddressingsocialneedinthiswayshouldbeclearfromourbehaviourandourdocumentation.Good,accomplishedbidderswillpickuponthisandnomatterwhetheryouopttointroducesocialawardcriteriaorsimplyimposeperformanceobligations(seetheargumentsforbothonpage20),theywillunderstandtheimportanceofbeingmindfulofthisastheyseektoprogressinthecompetition.IfbiddersdontknowhowimportantobtainingsocialvalueistoCroydon,thereislittlechanceofthemassistingusinachievingsocialbenets.

Thethirdsector,includingcharitiesandsocialenterprisesare,ingeneral,deliveringsocial

benetasamatterofcourseandwillbewell-

placedtorespondtoyouraspirationsforsocialbenet.Althoughtheprivatesectordoesnot,onthewhole,havesocialvalueembeddedinitsdeliveryprocessesinthesamewayasthethirdsectorthereisaclearmovementamongstelementsoftheprivatesectortogetinvolvedinsuchinitiatives.Yes,theyknowitcanhelpthemwinappointments,butitisclearalsothattheyoftenseeitasanextensionoftheirowncorporatesocialresponsibilityinitiatives.ThereforeiftheCouncilcanestablishitselfattheforefrontofthismovementandputinplacemechanismstoharnesstheskillsandexpertiseoftherelevantsectorthenthereisaveryrealopportunitytodeliversomethingsignicantforCroydon.Gettingthemessagerightwillattractcredibleandcompetentbidders,withextensiveexperienceofdeliveringsocialbenetsthroughtheirpubliccontracts,enablingustomakeaveryrealdifference.

> Social Beneft as Award Criteria orPerormance Obligation

Oneofthekeydebateswhenconsidering integratingsocialbenetintoprocurementiswhetherornotitisappropriatetousesocial benetsasawardcriteriaandthereforeaspart ofthedecisionastowhotoawardacontractto. Atitssimplest,asocialissuemaybeanaward criteriaifitislinkedtothesubjectmatterofthe contract.Insuchcircumstancesyouwillbeable totakeintoconsiderationsocialbenetsatevery stageoftheprocurement,including,forexampleatselection(intermsofthebiddersexperience) andataward(intermsofthebiddersproposalstodeliversocialbenets).Ifthisisnotpossible,it isstill,however,possibletoimposeperformanceobligationsonasuccessfulcontractor.Incertain circumstances,itmayevenbepossibletocombinebothapproaches.Whatisimportantisthatinnearlyall circumstancesitwillbepossibletoseektosecure additionalsocialbenets.Determining that theidentifed social issue is linked to the subject

matter o the contract provides the greatest

opportunity to ensure social considerations

are at the core o the decisionmaking process.

3.TheProcurementStepstoAchievinggoodqualitysocialbenefits | 17


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However,evenifthisisntthecaseyoustillhavetheopportunitytoimposesocialvaluewithin

acontractasapre-determinedperformance obligationyoujustcanttakethisintoaccount intheaward.Aswithmanyelementsofprocurementlaw thereislimitedguidanceastohowtoestablishwhethersomethingis,orisnot,linkedtothe subjectmatterofthecontract.Careshould, therefore,betakentoanalysewhatitisyouareseekingtocommission,whatsocialbenetsyou hopetosecureandwhetheritcanproperlybe saidthatthesocialissueislinkedtothecore requirementofthecontract.UltimatelyitisuptotheCounciltodetermine whattheprocurementrelatesto.Itmaybepossibletotiethesocialissuetothesubjectmatterofthecontractandevaluatethebidders approachtothisaspartoftheawarddecisionif: Youcandescribeindetailtheinvestmentyou

aremaking; Articulatehowandwhereitrelatesto,for

examplethewiderregenerationofthearea;and Addresshowitseekstoaddresssomeissue

ofcommunitydecitorwhyitisbeingplaced inordertofacilitateawidercommunity programme.

> Which approach to use and whenDeterminingthebestapproachmustbedoneonacasebycasebasis.Asingleapproachwould notworkforanycontractingauthority.Each contractmustbelookedatonitsownmerits andmanydifferentfactorswillberelevantwhendecidinghowtoproceed.Theseinclude: Thevalueofthecontractonlycontracts

overcertainvaluesaresubjecttothefull rigoursofprocurementlaw.[Attimeofpublicationthethresholdsforworks,supplies andservicesare4,348,350,173,934and 173,934respectively].Contractsfalling belowthethresholdsarenotsubjecttomanyofthemorerestrictiveobligations.Inthese casesyouhavesignicantlymoreexibilitytoadoptaprocesswhichsuitsyoursocialbenet aspirationsandwhichmightmakeiteasier togivecredittobidderswhoseektoaddresssocialissuesintheirresponses;

Thenatureofthecontract(i.e.whatsit for?)notallcontractslendthemselvesto asocialbenetapproach.Forexample,itis generallyacknowledgedthatthereislimited opportunitytoembedsocialbenetsintothe procurementofasimplesupplycontract;

Whetheritisaregulatedorunregulated contractnotallcontractstriggerthefull

applicationsofprocurementlaw.Forexample,contractsforPartBservices(evenifabove threshold)suchasforsocialservices,security orrestaurantservicesareallsubjecttoalightertouchregime.Similarly,contractsforinvestment,simplelandtransactionsandworksandservicesconcessionsareallless regulatedand,therefore,potentiallyprovideanadditionalopportunitytoadoptamore exibleandcommercialapproachtotheplacingofthesecontracts;and

18 | 3.TheProcurementStepstoAchievinggoodqualitysocialbenefits


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A Social Value Toolkit for Commissioners

Whattypesoforganisationsmightbe interestedinthecontract?-Understanding

whomightbeattractedbytheopportunity andultimatelywhomightbeabletodeliverit willbeextremelyimportantinchoosingyour approach.Forexample,ifitisforanextremelycomplexorhighvalueworkscontract,then thefocusmightbeonrequiringminimumnumbersofnewemployees,apprenticeshipsetc.tobedeliveredthroughthecontractand creatingobligationsforatransparentprocess fordeliveringsub-contractoropportunities.

Ifthecontractisasmallerservicescontract considerationmightbegiventowhethersmallerbusinessesandcommunityorvoluntary organisationscoulddeliverit.Ifthisisthe case,careshouldbetakentoensurethatsuchbusinessesareawareoftheopportunity,understandwhatmightberequiredtotenderfor

itandtherearenounnecessarybarrierstotheir involvementintheprocess(furtherguidance

supportingthisapproachispublishedbyCroydonsWorkforceandCommunityRelationsdirectorateCommissioningandProcurementPolicyforJobsandSkills). Thefollowingsectionanddiagram(page20) describetwomainsuggestedprocurementroutes:Route1AwardCriteriaandRoute2PerformanceObligation,(i.e.contract performance)andthemeritsofeachintermsof tryingtogetthemostsocialvaluefrom a contract.I you look at the ow diagram (over page) frst, the

text explaining each stage ollows.



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The Procurement Routes to Achieving Social Value

Beforeyoucanchoosethecorrectroute,youneedtoconsiderwhatitisyouarepurchasing,howyouaregoingtodothisandwhatadditionalbenetyouhopetosecure. Route 1 - Award Criteria Route 2 - Performance Obligation

Thisapproachwillbeavailableifthesocialissuecanbesaidtoberelatedtothesubjectmatterofthecontract. Thisapproachisnearlyalwaysavailableandshouldbetheminimumexpected.

Embed in Business CaseEmbeddingintheBusinessCasemeansthatyouarethinkingaboutsocialissues

fromtheoutset,givingyouthebestchanceofmaximisingtileopportunity.

Reerence in OJEU (PartAservices)Thisisalegalrequirementthatalsoensuresbiddersareawarefromtheoutset

ofyourintentions.(SeesampleOJEUwordingin(page21).

Test previous experience o delivering social benefts in PQQAsthesocialissueisrelatedtotheawardcriteria,itispermissibletotestbidders

experienceofdeliveryonsocialissues.(Seesamplequestionsat(page22). Crat award criteria, and disclose in ITT/ITPD

EitherwithintheITTortheinvitationtoparticipateindialoguethesocialaward criteriaweightingsandmethodofscoringshouldbedisclosed.(See3approaches

toawardcriteriain(page37,47,56). Award Contract-Allsubmissionsareevaluatedandthemosteconomicallyadvantageoustenderidentied.(Seesamplescoringmatrixatpage37and47).Allcommitmentsmadebythepreferredbidderincludingthoserelatedtosocialissuesshouldbereectedinthenalcontract.

Monitor PerormanceHavingsecuredacommitmentfromthecontractortodeliversocialvalue,itis imperativethatthecouncilmanagethesuccessfuldeliveryofthese.(Seepage 24,53and56fordetailsonhowamaintainingprocessmightbeimplemented.)

Embed in Business CaseEmbeddingintheBusinessCasemeansthatyouarethinkingaboutsocialissues

fromtheoutset,givingyouthebestchanceofmaximisingtheopportunity.

Reerence in OJEU (PartAservices)Thisisalegalrequirementthatalsoensuresbiddersareawarefromtheoutset

ofyourintentions.(SeesampleOJEUwordingin(page21).

Explain Importance in PreQualifcation DocumentAgain,thisisaboutensuringthatbiddershavenodoubtastothe

importanceofseeingasocialreturntothecouncil.

Disclose Perormance Obligations in Tender DocumentsWhilstnottestedaspartoftheawarddecision,thecontractclausemustbeprovided

toallbiddersinorderthattheycanpricetodeliverthese.(Seepage27). Award Contract

Thecontractisawardedtothebiddersubmittingthedrafttender providingtheyhavecommittedtomeetthecontractualobligations (includingthesocialperformanceobligations).

Monitor PerormanceHavingsecuredacommitmentfromthecontractortodeliversocialbenet,itis imperativethatthecouncilmaintainthesuccessfuldeliveryofthese.(Seepage 24,53and56fordetailsonhowamaintainingprocessmightbeimplemented.)

Feedbackresultsandlearningintothecommissioningcycle20 | 3.TheProcurementStepstoAchievinggoodqualitysocialbenefits


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Route 1

Award Criteria Methodology

> Preprocurement market assessmentMarketassessmentisapowerfultoolfor exploringthecapabilityofthemarket-place todeliversocialbenets.Attheoutsetofthe procurementtherelevantmarketplaceshouldbethoroughlyresearchedandaproviderlist createdofallrealisticbidders,includinglargeestablishedproviders,SMEs,micro-enterprisesandthirdsectororganisations.Wheretimeandresourcesallow,thesesupplierscanbebroughttogetheratabiddersdayatwhichtheoutline project-plancanbediscussed.Initiativesaimedatwideningparticipationin biddersdaysandtheprocurementshouldbeconsideredwhereappropriate.Thesemayincludeencouragingmainsupplierstoadvertisesub-

contractingopportunitiesinthelocalpressand splittingcontractsintosmallerlots,whichare manageableformicro-enterprisesandSMEs. Specialistthirdsectororganisations,whowould ordinarilynotbeinvolvedinpublicprocurementshouldalsobecontactedandmadeawareofthe opportunities.

Thesemeasuresmustbecarefullymanagedtoavoiddirectlyorindirectlyfavouringany

contractorandshouldnotbeusedtoavoidthe applicationoftheRegulations.Furtherguidance onwideningparticipationinpublicprocurement isavailableontheCabinetOfcewebsite(http://www.cabinetofce.gov.uk/).

Feedbackfrommarketengagementcanbeusedtoproducetechnicalspecications,whichalignwiththecapabilitiesofthemarket-placeandincorporateachievablesocialbenets.Thesespecicationswillunderpintheevaluation

criteriausedintheprocurementtoselectthewinningbidder. > OJEUWhereprocurementfallswithinthescopeofthe Regulations,anoticemustbepublishedinthe OfcialJournaloftheEuropeanUnion(anOJEU Notice).Nomatterwhetheryouareusing awardcriteriaorsimplyperformanceobligations, youmustmakethisclearfromtheoutset.This

isnotonlyalegalrequirementbutinadditionitisyouropportunitytoputsuchmattersrmlyat theforefrontoftheprocurement. Iftheevaluationcriteriaincorporatessocial benetsthismustbesetoutintheOJEUNotice. Wordingusedforthispurposeshouldbeframed

asbroadlyaspossibletoensuremaximumexibilitythroughouttheprocess.Thefollowing

isexamplewording:It is intended that this Project acts as a catalyst

or [broadly defne the goal o the social benefts

e.g. regeneration within the London Borough o

Croydon]. Accordingly, the [contractor] will be

required to actively participate in achieving these

objectives and contract perormance conditions may

relate to social and environmental considerations.

The contractors technical capability to meet

these requirements may also be assessed at theprequalifcation 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 [PreQualifcation suite o

documents].

WhereacontractfallsoutsideoftheRegulations, anoticewillbepublishedateithernationalor EUleveldependingonthenatureandvalueof thecontract.Similarwordingshouldbeused toensurebiddersarefullyinformedoftheprocurementssocialobjectives.



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> Prequalifcation QuestionnaireItiseasytodismissthisasaproceduralexercisebuttheelementsinthePQQcanbekeytodeninghowimportantsocialbenetsare toCroydon.Intheshorttermitfocusesthe attentionofthebiddersandtheimmediate market,inthelongtermitheightensawarenessandbuildsthecontractorskillbase. Therulesonpre-qualicationquestionnaires (PQQs)permitaninitialassessmentofsocial benetswheretheyareconnectedtothegroundsforexclusionspeciedintheRegulations: mandatoryanddiscretionarygroundsfor rejection,nancialstandingandtechnical capacitytoperformthecontract.Inpractice, questionsonsocialbenetwillfallintothelatter category.APQQmustincludecorequestions,forwhichtheCabinetOfcehaspublishedstandardform questions,whichLocalGovernmentbodiesarerecommended,butnotobliged,touse.(http://www.cabinetofce.gov.uk/sites/

deault/fles/resources/AnnexACorePQQ-

questions.pd).

Projectspecicquestionsmayalsobeused,such asthefollowing:

Environmental Management Policy

1. Do you have a documented policy and

organisation or the management o construction

related environmental issues?

2. Do you have documented arrangements or

ensuring that your environmental management

procedures are eective in reducing or preventing

signifcant impacts on the environment?

3. Do you have arrangements or providing

employees who will engage in construction, with

training and inormation on constructionrelatedenvironmental issues?

4. Do you check, review and where necessary

improve your environmental management

perormance? Do you have arrangements or

ensuring that any suppliers you engage apply

environmental protection measures that are

appropriate to the work or which they are being

engaged?

Targeted Recruitment and TrainingIt will be a requirement when carrying out this

contract that the contractor provides support or

targeted recruitment and training. Please provide

[insert number o] examples o your approach to

and previous experience o 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 ohigh residential density, it is important that the

contractor engages with the local community as it

seeks to successully deliver the contract. Please

provide [insert number o] examples o previous

projects where you have engaged with a local

community during the successul delivery o a

complex project similar to the Project in a similarly

built up area.

Detailed consideration should be given to the

weighting given to social beneft considerations and

how they should be assessed during this stage o

the procurement.

Inverybroadterms,therearetwowaystotestwhatabiddermightofferintermsofits proposalsforsocialbenet.Theseare: 1. Specifed Requirements: Wherethebidder

isrequiredtosubmitguresandoutcomesinadenedmannerandthisiscapturedina contractschedule.

2. Open Questions: Wherethebidderispresentedwithchallengesthatneedresolving viaopenquestionsforthebiddertodevelop innovativesolutions.



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> Specifed requirementsApro-formamethodstatementasksbidderstostatehowtheywillprovidethesocialbenets setoutintheawardcriteria.Thisisthemost straightforwardoptionasitforcesbidderstoaddresseachoftherequirementsandcanbeevaluatedusingamorestructuredscoringframework.Thebenetofspeciedrequirementsisthatyou ensureaconsistencyofresponseinthetender return.Thismakesevaluationeasierandensuresthatbiddersdelivertoaminimumrequirement.Itensuresthattheoutcomescanbetransferred easilytothecontract.Anapproachofthistype hasbeensuccessfullyutilisedacrosstheUKby bodiessuchasRaplochURC(seecasestudyon page52),Crossrail(onitsmulti-billionpound investmentinnewrailinfrastructurepage26), andtheOlympicDeliveryAuthority(page9)on itsinvestmentforthe2012Games.ExamplemethodstatementsfromCrossrailandRaplochURCaresetoutoverthepage.Thepotentialdownsideofspeciedrequirementsis thattheydonotnecessarilychallengebiddersto exceedtargetsanddeliveroverandabovetherequirement.

> Open QuestionsOpenquestionsprovidebidderswithanoutlineofwhattheauthorityisseekingtosecureand challengesbidderstomeetandexceedthis.Thebenetofthisapproachisthatitpresents thegreatestopportunityforabiddertousetheir innovationandexpertisetooffersomething different,toseektodevelopsolutionswhichare notformulaicbutratherwhichlookatproblems fromdifferentangles.Suchanapproachoften deliversagreaterreturngenerallybutalsoawiderandmorediverserangeofbenets,manyofwhichcouldneverhavebeenanticipatedatthe outset.IslingtonBSF(seecasestudypage58)is oneexamplewheretheLocalAuthoritysecuredarangeofbenetsitmaynototherwisehave achievedusinganopenquestionapproach. 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 o thespecifc Scheme, evidenced by specifc 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 o small businesses (SMEs) andSocial Enterprises (SEs) that he will employ on

the Project. The Contractor will be required to

make opportunities available and to support the

development o an eective supply chain.

The Contractor is required to develop and deliver

a community benefts plan identiying the benefts

which it will contract to deliver during the course o

the contract. The plan should describe in detail each

beneft, how and when it is to be delivered.

Whilsttherstapproach,speciedrequirements,limitstheopportunityforinnovationtosome extent,itisclearthatevaluatingresponsesfrom bidderstospeciedrequirementsislikelytobeeasier,astheanalysisrequiredtodothisislikelytobefarlesssubjective.



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> Contract ManagementTheimplementationofsocialbenetscanonlybeassuccessfulasthemonitoringandreviewmechanismscontainedinthenalcontract.Effectivecontractmanagementisabsolutelyvital.Toensurethatsocialvalueobjectivesaredelivered,itmustbepossibletomeasureandquantifytheoutcometheypursue.Wheresocial benetshavebeenusedasawardcriteria,a carefullydraftedmethodstatementcanbe adaptedforuseinacontract.Whereopen questionsareadoptedorproposalsaremodied duringcompetitivedialoguethoughtmustalways begiventohowproposalscanbemeasuredandmanagedduringthecontract. Robustmonitoringagainstdenedkeyperformanceindicators(KPIs)mustalso beincluded.KPIsshouldbeclearlydrafted, achievableandreecttheimportanceofthe socialbenettotheprojectasawhole.Thedata collectionexercisesshouldnotbeunnecessarily onerousandtheassociatedcostsshouldbe proportionatetothevalueofthecontract.You willneedtoconductfrequentreviewsandinclude appropriateincentivesanddisincentivesto encouragecompliance.

Effectiveandfaircontractmanagement mechanismscanalsofosterapartnership

culturewithasupplier,bringingadditionalsoftbenetstoprojectdelivery.Example o matrix rom Raploch URC

> Social Beneft Method Statement1. Training

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

1.2 PleasecompletetheTablesbelowinrelationtothewholedevelopmentandthenthenext two12monthperiods.

Total personweeks to be delivered by new entrant

apprenticeships, employed operatives and non-

employed trainees (excluding work placements)



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Occupation LabourRequirement

Personweeks delivered by New Entrant Trainees

Total or

ContractApprentices

Employed

operatives

Nonemployed

TraineesTotal No.

% o

total

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

Trades

Apprenticeship

or Young

People and

Adults

Employed

Operatives

semiskilled

and unskilled

employees

Total in

employment

Nonemployed

trainees all

levels and

occupations

Total in

Employment

and Training

Notes:

P/wksAperson-weekistheequivalentofoneperson

workingfor5dayseitheronsite,orthroughamixof on-siteworkandoff-sitetraining.Thetotalperson-weeks utilisedonthecontracttoincludetimeprovidedby managementandprofessionalstaff,tradesandoperative staff,andancillarystaff. Noenterherethenumberofindividualsthatyou anticipateusingforeachoccupationandcategory. A new entrant traineeisapersonthatisleaving aneducationalestablishment(e.g.school,collegeor university)orleavingatrainingprovider,oranon-

employedpersonthatisseekingemploymentthat includeson-sitetrainingandassessmentoroffsite training,oramixofthese. An Apprenticeisapersonregisteredasanapprenticewithanindustryrecognisedbody.Eachapprenticecanbe countedasanewentranttraineeforupto104weeks.



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Example o matrix rom 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) or; an individual

rom the Local Community and/or an individual who has been longterm workless I unemployed/ out o

education or training or 6 months plus.

Apprentice (new)2 1 1FTE P/wks

Job Start1FTE

Other outputs (50% or less)

Graduate Training

Scheme 200 200 1FTE

Placement (days)200 days 2

Taster (days)

100 days

Workorce Slkillls (days)200 100 days 2

Work Experience (days)100 100 100 days 2

26 | Introduction


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Route 2

Perormance obligationsmethodology

> Preprocurement market contactWheresocialbenetsarenotcorerequirementstheemphasisofmarketcontactshouldbeonthe industryscontractualstructuresandsuppliersattitudestovariousformsofmonitoringand KPIs.Particularattentionshouldbepaidto suppliersopinionsonthefeasibilityofthe variousoptionsandtheirlikelihoodofachieving thestatedbenet. Preparationformarketengagementisimportant, includingaccuratelydeningthesocialbenets andconsideringhowthesemightbeincorporated intocontractsandmanagedgoingforward. Carefulpreparationwillensurebothsidescancontributeeffectivelytotheengagementand begintoconsiderappropriateapproaches.> OJEUAsnotedearlier,oneofthekeystosuccessisensuringthatbiddersareinnodoubtasto theimportanceCroydonCouncilplaceson securingsocialvaluefromitsinvestment.Your

enthusiasmforthismustservetoinspirethemthroughbothyourbehaviourandconductwhen

engagingwiththemandasaclearandconsistent themeineachandeveryprocurementdocument. Itwillstillbenecessarytoinformbiddersof theroleofsocialbenetsfromtheoutsetto ensuretheyarecapableofmakinganinformed judgmentonwhethertotakepartintheprocess.Thefollowingwordingmaybeused.It is intended that this Project acts [as a catalyst

or the social regeneration o the local area].

Accordingly, the [contractor] will be required toparticipate actively in achieving these objectives.

Accordingly, contract perormance conditions may

relate to social and environmental considerations.

Further details will be provided in the Contract

Documents.

> Award / contract managementPerformanceobligationsarenotawardcriteria socannotinuencewhoischosenasthe successfulbidder.Whilstbiddersmustacceptthecontractualconditionsinordertosubmita validbid,theyareonlyrequiredtoimplementthetermswhenperformingthecontract,notbefore orduringthetenderexercise.

Thesameprinciplesofcontractmanagement outlinedabovemustofcoursebeappliedforall

socialbenetelementsofthecontracttoensure effectivedelivery.Contractualconditionsofferawiderarrayof socialbenetsthanisoftenpossiblebyusing theevaluationcriteriamethodology.ThefollowingbenetswereexpresslyrecognisedintheEuropeanCommissionsInterpretativeCommunicationof2001: Theobligationtorecruitunemployedpersons,

ortosetuptrainingprogrammesfortheexecutionofthecontract;

Theobligationtoimplement,duringthe executionofthecontract,measuresthat aredesignedtopromoteequalitybetweenmenandwomenorethnicorracialdiversity, orprovideequalaccesstopersonswith disabilities;

Introduction | 27


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Theobligationtocomply,duringtheexecutionofthecontract,withfundamental

humanrights(suchastheprohibitionofforcedandchildlabour)guaranteedbytheInternationalLabourOrganisation(ILO)coreconventions,insofarastheseprovisionshavenotalreadybeenimplementedinnationallaw;and

Theobligationtorecruit,fortheexecutionofthecontract,anumberofpersonswithdisabilitiesoverandabovewhatislaiddownbythenationallegislationintheMember

StatewherethecontractisexecutedorintheMemberStateofthesuccessfultenderer.

The Contractor is required to identiy and

participate in activities which engage the local

community and help raise awareness o the

project, the construction industry and sustainable

development.

In meeting these requirements, the Contractor will

be required to provide a named contact or each

site and to actively engage with the Council and to

work in partnership with appropriate agencies and

service delivery agents.

On the award o the Contract, a detailed process

map will be agreed taking account o the deliveryinrastructure in the area.

In submitting this tender, the Contractor agrees to

meet the Community Beneft requirements and to

proactively engage with the Council.

ProvidedtheintentiontousesocialbenetsissetoutintheOJEU,theonlyotherexpressconstraintsarethattheconditionsmustberelatedtotheperformanceofthecontractandcomplywithEUlaw.Whenyougettothestageofmanagingthecontractpleasegotoguidanceonpage24.



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Inspire

Invitebidderstosetouthowtheywillhelpyouaddresslocal

challengesandneeds

Require

Biddersmustcompleteamatrixortablespecifyingtheexactnumberandnatureofsocialbenetstheywilldeliverasessedagainstpre-agreedmeasuressuchasnumberofpersonweeksoftraining. TheRaplochandCrossrailmatricesaregoodexamples.

Instruct

Biddersmustsetouttheiroffer againstaseriesofclosedquestions. Howmanylong-termunemployedwillbeemployedontheproject?

Howmanysocialenterpriseswillbeincludedinyoursupplychain?



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> The Power o Competitive Dialogue inmaximising social value

Thiscangetabitcomplicatedbutitisworth givingseriousconsiderationtocompetitivedialogue(orCD).ThemainadvantageofCDto Croydonistheabilitytoengagedirectlywithbiddersduringdialogue.CompetitiveDialogueisthemostsophisticatedandexibleofthefourproceduresavailableto contractingauthoritiesundertheProcurement Regulations.Incontrasttoamorerestrictedprocedure,theCompetitiveDialogueprocedureoffersmoreexibilityduringthedialogue stagetodiscussthefullmentofsocialbenet objectivesasatwo-waydialoguematching theauthoritysaspirationswitheachbidderscapabilities.IfyoucanjustifyusingCDthenwecan useitsdialoguesessionstoraisespecic issueswithbidders,ensuringthattheyareaddressedeitherinthebiddersresponsetothetechnicalrequirementsorinthecontractual documentationasappropriate.

However,CDmayonlybeusedforwhataretermedparticularlycomplexcontracts.This termisintendedtodescribeprojectswheretheauthorityisunabletodenethetechnical meansofsatisfyingitsneedsortospecifythe legal/nancialstructureoftheprojectfrom theoutset.Inpractice,thisislikelytoarise whereitisnotpossibletoissueacomprehensivesetofrequirementsattheoutset.Througha CDprocedure,anauthoritycanengagewith thebidders,usingtheirspecialistandmoretechnicalknow-howandexpertisetodeneits requirementmorepreciselyandbeforeinvitingnalbids.Anauthoritymustcarryoutasuitability exercisebeforeusingCDtotestitsappropriateness.Oflate,CentralGovernmenthassoughttodissuadeprocurersfromusingCDbecauseoftheassumedadditionalcostsinvolvedandthetimeittakestouseCD.ItistruetosaythatitisnotappropriatetouseCDwhenthecomplexityof theprojectdoesnotjustifyit.However,itisalso thecasethatoftenitistheonlyappropriateway toputinplaceacontractwhichisnotsimple andonwhichthelegal,nancialortechnical requirementscannotbespeciedinadvance.

ApproachesusedtodeliverunderCDhavebecomesignicantlymoreefcientandeffective inrecentyears.Inlightofthis,andgiventhatCDprovidesthebestplatformtoencouragebidderstodelivermore,unilaterallyrulingoutuseofCD inallbutexceptionalcaseswouldundoubtedly representamissedopportunity.



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Outline o the procedure

Inthemoreregulatedprocurements,aCDstartswithacallforcompetitionbywayofa noticeintheOfcialJournaloftheEuropean Union.Bidderswhoexpressaninterestarethenaskedtocompleteapre-qualication questionnaireandselectedbiddersareinvitedtoparticipateindialogueandsubmitoutline solutions.

Afterexaminingtheoutlinesolutions,theauthoritywillconductaseriesofmeetings (knownasdialoguesessions)witheach bidderindividually,wheretheirsolutionswillbediscussed.Theauthoritymayholdas manyphasesofdialogueasitchoosesand dependingonthecompetitionstructure,mayconductinterimevaluationsbetweenthe phasesandexcludeweakbidders.WehaventgoneintodetailinthisToolkitbutclearlywherecommissioningorprocuring aservicewhichconstitutesaPartBService (forexample,healthandsocialservices, restaurantservicesorrecreationalorcultural services)whichisnotthereforeregulatedas strictlyasaPartAservice(i.e.maintenance andrepair,architecture,accountingetc.),thepotentialisgreatertoadoptamoreexibleprocedurewhichhas,atitscore,dialogueand directengagementwithbidders.

Benefts o using Competitive Dialogue in achieving Social Benefts

ThemainadvantageofCDtoCroydonistheabilitytoengagedirectlywithbiddersduringdialogue.IfCroydoncanjustifyusingCDthen itcanuseitsdialoguesessionstoraisespecic issuewithbidders,ensuringthattheyareaddressedeitherinthebiddersresponsetothetechnicalrequirementsorinthecontractual documentationasappropriate.Byhighlighting anddiscussingclearobjectiveswithbidders,Croydoncouldensurethatallbiddersareclear onallofthedriversfortheprojectincluding anyeffortstosecuresocialbenets,thereby ensuringthatbiddersareinastrongpositionto

fullthemandpossiblyexceedthem.AsecondadvantageofCDisthecompetitivetensioncreatedbetweenbiddersduringdialogue.Apro-activebidderwillnotonlyseek

tofullthesocialbenetsidentiedbythe authoritybutwiIIoftenalsoattempttobuildon thethemespresentedtocreateacompetitivepackage,whichmayexceedtheauthoritysexpectations.Asauthoritiesdemandmorevalueformoney fromtheirsuppliers,theabilitytodemonstrateadditionalsocialbenetsisakeyopportunity forsupplierstodifferentiatethemselvesfrom theircompetition.Afurtheradvantageisthat CDisevaluatedusingthemosteconomically advantageoustendercriteria,whichseeks

toidentifythebest-valuetender,takingintoaccountvariousfactors,expresslyincludingsocialcharacteristics,placingsocialbenets attheheartofbidderssubmissionsandthe evaluationprocess.



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> ConclusionsInsummary,whenyouareconsideringwhich procurementroutetotaketogetmostsocialvalueitwillhelpyouifyourstconsiderwhat we

want to achieveandhow we are going to go

about it,takingintoaccount: Thevalueofthecontract; Thenatureofthecontract(i.e.whatsitfor?); Whetheritisaregulatedorunregulated

contract;and Whattypesoforganisationsmightbe

interestedinit?Aswesaidatthestartitcanbetemptingto dismissprocuringforsocialbenetastootricky! Thistoolkit,however,demonstratesthatsecuringsocialvalueinvolvessimplestepsthatintegratesocialbenetsintoourprocurementpractice.It isstraightforward,achievableandworthwhile. TakingthosestepswillbringsignicantbenettoCroydonCouncilandthepeopleitservesbydeliveringasocialreturn,whereverpossible,on everypounditspends.

Whatfollowsnextisanumberofcasestudies fromlocalauthoritiesorpublicbodieswhohave securedsocialbenetthroughprocurement. Thereare10casestudies.ThistoolkitisentitledInspiringandcreating SocialValueinCroydon.Theintentionisthat thesecasestudiesnotonlyinspireusallinto actionbutthatweusetheminpracticalways: tohelpusrecognisewhereopportunitiesexistin thecategorycycle;toofferreassurancethatit canbedoneandtoofferactualtenderdocument extracts-clauses,disclaimers,evaluationtablesandsoonforre-use.Wehopethisgetsyouonyourwaytogettingasmuchsocialvalueaswecanoutof commissioningandprocurementforthepeople ofCroydon.



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4. Case Studies

1. CASE STUDY: CCURV Skills and Employment Group

This case study demonstrates Croydons commitment to sustaining employment and building skills in the borough.

Background

CCURVisaLocalAssetBackedVehicleintowhichCroydonCouncilprovideslandandassetsandJohnLaingprovidesequityworkingcapitalanddevelopmentmanagementservicestoundertakedevelopmentprojects.CCURViscommittedtodeliveringregenerationholisticallywithinCroydon.AmbitiousyetrobuststrategiestodeliversocialandeconomicbenetslocallyarepartofCCURVsstrategyforeachdevelopmentandarereectedaskeydeliverablesinCCURVs contractswithitsconstructionsupplychains.TheCroydonCouncilUrbanRegenerationVehicle(CCURV)Skills&EmploymentGroupbringstogetherthepublicprivateandthirdsectorstoshapeandreviewthesocialandeconomicbenetsdeliveredthroughCCURV;aninnovative25yearpartnershipbetweenCroydonCouncilandJohnLaing,aprivateinvestoranddeveloper.

> How social value was securedThe tender process

CCURVsobjectivetoencourageemploymentgenerationandgrowthofabuoyanteconomyfor CroydonisoneofanumberofpublishedCCURVobjectivesthatarecontainedintheoverarchingCCURVlegalframeworkbetweentheCounciland JohnLaing.Thisobligationiscarriedforwardin performanceindicatorsagreedandcommittedtobyCCURVcontractors.Opendialoguewithcontractorsisundertaken duringtheselectionprocesspriortoappointment concerningcorporatesocialresponsibilities commitments:localemployment,educationand training,careerandprofessionaldevelopment,localsupplychainandcommunitydevelopment. SpeciccommitmentsagreedwithcontractorsareratiedbytheCCURVPartnershipBoardandenshrinedwithincontracts.Typicaltargetsmightinclude:

Adenedpercentageoftheworkforcetobe ontraineeanddevelopmentprogrammes

Adenedtargetpercentageoftheworkforcetoberecruitedlocally(i.e.fromwithinthe CroydonTraveltoWorkarea)andallnewemploymentopportunitiesadvertisedin Croydonrst

Creatinglocalsupplychainopportunities, seekingtoplaceadenednumberofpackages withlocalbusinessesanddenednumberof furtherTier3packages

Creatingopportunitiesforthirdsector organisationstoenterthesupplychainor toprovideaddedvaluebylinkingservicestolocalneeds.

Creatingandsupportingworkplacements, internshipsandothervocationalopportunities forCroydonsyoungpeople

Engagingdirectlywiththecurriculumthrough supportingthedevelopmentofvocational diplomasanddevelopingconstruction-linked lessonplans

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Workwithatleast1voluntaryandcommunitysectororganisationonanongoingbasisfor thelifeoftheproject

AppointadedicatedChampiontoundertake liaisonwithlocalcommunities,groupsandorganisations

> What social value has been achievedTheSkills&EmploymentCoordinationGroup wasestablishedbecausebothCroydonCouncilandJohnLaingrecognisedthatmorecouldbe achievedbysupportingpositivecollaboration thanbyleavingthesupplychaintowork autonomouslyandperhapsinisolationfromthe organisationsandinitiativesalreadysupporting communitiesandbusinessesintheborough.TheSkills&EmploymentCoordination Groupmeetsmonthlyandincludes:Croydon College;JobcentrePlus;REDs10;National ApprenticeshipsService;BusinesstoBusiness; CroydonVoluntaryAction,ChangingPaths;SirRobertMcAlpine;WatesConstruction;CSkills;

JohnLaingandCroydonCouncil.TheSkills&EmploymentCoordinationGroup seekstomaximiselocalbenetsbydeployingthecomplementary,butdifferentskillsofeach ofitsmembers,toseizenewopportunitiesand

collectivelytacklechallengesthatcouldhinder delivery.Successesto-dateinclude: Over6millionCCURVsupplychaincontracts

havebeenawardedtoCroydonsbusinesses.LocalSMEengagementhasbeenfacilitated throughworkingwithBusinesstoBusiness, whichprovidesERDF-fundedservicestoprovidetailoredengagementtoupskilllocal SMEstoidentifyandeffectivelycompetefor oursupplychaincontracts;

CCURVanditsconstructionpartnersalso supportedBusinesstoBusinesstobidfor,andsecure,furtherfundingtoextendits businesssupportprogrammefortwomoreyears.Ourabilitytostimulatedemandisgrowingencouragingoursupplychaintobuyfromlocalrms.Ithelpstoeffectivelylink thetraininglocalbusinessesreceivetorealopportunities;

Averagelocalemploymentof18.2%onthe BernardWetherillHousescheme(SirRobert McAlpine)and23%ontheWaddonmixeduse

scheme(WatesConstruction);

WithadvicefromtheNationalApprenticeship Services,anApprenticeshipTrainingAgency(ATA)hasbeenestablishedbetweenCCURVandREDs10,anawardwinningsocial

enterprise.TheATAaugmentsthenumberofapprenticeshipsgeneratedbyCCURVsconstructionsupplychainsbybrokeringpartplacementsacrossmultipleCCURVprojects;To-datethishascreated12placements,whichwouldhavenotbeenpossibleifwe hadonlyadoptedatraditionalapproachto apprenticeships;

FundedbytheWatesGivingProgrammeandtheJohnLaingCharitableTrust,abespokeprogrammehasbeenprovidedbytheconstructionsupplychainandChanging Pathstoprovidetrainingandguaranteedsustainableemploymenttothoseleavingprison.ThiswasdesignedaspartofCroydonsresponsetosupportinglocalcommunitiesaftertheBoroughwasaffectedbycivicunrest inthesummerof2011.

Akeysuccessfactorwithinthisinitiativehasbeenthecollaborativeapproachbetween ChangingPaths,JobCentrePlus,CroydonCouncilandourconstructionpartners.The partnershipshasbeeninstrumentalintackling potentialbarriersthatmayhavepreventedbeneciariestakingpart,suchasthepossible lossofbenets.To-date5ex-offendershavesecuredsustainable,fulltimeemploymentthroughthisinitiative;

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8localpeoplewhowerelong-term unemployedundertookanintensivetwoweek workexperienceprogrammeorganisedbySirRobertMcAlpinetogetherwithJobcentre Plus,whichhasledtosustainable,fulltime employmentwithrmsintheconstruction supplychain;

Awiderangeoflecturesandplacements havebeenofferedforstudentsatCroydonscollegesandschoolsandWatesConstruction isprovidingtraininginthelatestindustry technologiesforteachingstaffatCroydon CollegesNewAddingtonConstructionTrainingcentre;

Recognisingthateffortstoplacelocal peopleinconstruction-linkedemployment opportunitiesaresometimeshamperedbyalackofunderstandingaboutspecic tradeandskillsrequirements,JobcentrePlusworkedwithREDs10,SirRobertMcAlpineand WatesConstructiontodeveloptraininganddedicatedpointsofcontact.Thisensureda bettermatchbetweenthecandidatesunder considerationandthevacanciesthat becomeavailable;

ATrainingandVisitorCentrehasbeenprovidedbyCCURVandSirRobertMcAlpine.IfoverlooksakeyCCURVdevelopmentsiteandisheavilyusedbycommunitygroups,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 benefts as core requirements in its open

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

its workorce o people with mental health difculties.

BackgroundProcurement

Legislation

SolsticeNurseriesisasocialrmthatprovidestrainingandemploymentaroundhorticultureforpeoplesufferingwithmentalhealthdifculties.GrampianHousingAssociation(GrampianHA)playedacrucialroleinsupportingSolsticeNurseriesinitsstart-

upphaseandcontractedittoprovideopenspacemaintenanceworkonanumberofitsestates.Italsoprovidedaccommodationfortheorganisationwhileitsecuredfundingandestablishedanewsiteforthenursery.Whentheopenspacecontracts,atavalueof100,000,cameupforretenderingGrampianHAneededtotestSolsticeNurseriesservicesagainstthewidermarket.However,italsowantedtorecognisethetrainingandemploymentopportunitiesthatsocialenterpriseslikeSolsticeNurseriesprovide.

Veriedlegalityofincludingsocialvalue

clausesinthecontractContract Review

Recognisedthesocialvalueachieved

alongsidegroundsmaintenance

outcomesandwantedto continue to

achievethem

Tender Document

Preparation

Enshrinedsocialvalueoutcomesintender

documentation

36 | 4.Casestudies

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eLegis

lati

on

,Regula

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&Policy

Environment

Category

Cyc

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CroydonCouncil

Procurement TeamServiceowner

Needs analysis &


Establishedneedforopenspacemaintenanceandsocialvalueoutcomes

Category Strategy Plan

Areyouseeingsocialbenetsaspartofa biggerpicture?CumbriaCC(page49)sawthepotentialtoincludesocial valueacrossallcontracts.

Service Design /Specifcation

Usedprepphasetoincorporatesocialvalueoutcomesinopenspacescontractspecication


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AlthoughGrampianHAwaskeentosecuretrainingandemploymentopportunitiesfrom itscontractorstheorganisationwasunsureofthelegalbasisofsuchanapproach.Legal advicereassuredthemthataslongastherewasaclearstrategictwithGrampianHAsaimsandthatthesocialbenetwasthecore purposeofthecontract,itwaspossibleto requiresocialvalue.GrampianHAconcludedthat theirstrategicobjective3gaveaclearremittodevelopsocialvalue:Promote social inclusion through community

based projects.

GrampianHApilotedanamendedprocurementprocedureforthecontract.Thetenderwas weighted30%priceand70%qualitytoensure thatpricewouldnotoutweightheotherbenets inawardingthetenderwhilestillensuringthat thecontractrepresentedbestvalue.Thequalitycriteriaincluded:Quality o workmanship and service and

community benefts, training and added value

in terms o the Associations wider role

Eachqualityheadingwasmeasuredusingquestionswithaweightedscore,dependingonits priority,withindividualscoresaddingupto100 across a section.

Thescoregavecontractorsanideaoftheimportanceofeachqualityareatothe Association.TheAddedValueelementofthequalitycriteriacarrieda30%weighting.The Tableshowseachelementoftheaddedvaluecriteria.

> Contract AwardAlthoughanumberofcontractorswereableto demonstratehowtheyrecruitedandsupported long-termunemployedpeopleintheworkplace, SolsticeNurseriessubmittedabidwhichhada winningcombinationofpriceandquality.

> What social value was achieved?SolsticeNurseriestenderdescribedhowthey wouldmeetthesocialclausesby: Employingamaintenanceassistant Throughtheirsocialaimstatementasasocial

rmemployingseverelydisadvantagedpeople ProvidingVocationallyQualiedandother

recognisedtraining Sourcingmaterialsandserviceslocally

Part 3 Added Value (30%) Marksallocated

3.1Thenumberofnewjobsthatwillbecreatedthroughsecuringthiscontract 203.2Thenumberofunemployedpeoplewhogainemploymentasaresultofsecuringthiscontract 203.3Thenumberofpeoplecompletingrecognisedtraining,asaresultofsecuringthis

contract(pleasestatewhichcourse/courses) 20

3.4Thenumberofpeoplecompletingprogrammestohelpincreasejobrelatedskillsasaresult 203.5Whatdoyoudotohelpsustainability,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 benefts and achieve greater value or money.

Background Contract Review

In2000,LiverpoolCityCouncilwasexploringhowtodeliveritsrecyclingserviceunderanewregimeofbudgetaryconstraintsasitscontractwithamainstreamcontractorcametoanend.TheCouncilsnancialconcernarosefromthepercollectionpaymentsystemitusedwiththepreviouscontractor.TheCouncilwasreceivingmorecallsthanexpectedtoitsrecyclingservicewhichmeanta10percollectionfeewaslikelytobecometooexpensivefortheCouncil.Theywerealsokeentobuildlinkswith,andsupport,thesocialenterprisesector. TheCouncilapproachedtheLiverpoolbasedFRCGroup.BulkyBobsisoneofFRCssocialenterprisesandprovideswasteremovalandrecyclingservicesforbulkyitemsatthesametimeasprovidingtrainingandemploymentopportunitiesforthelong-termunemployed.

Recognisedunsustainablecostof

peritemcontractpaymentstructureofexistingcontractandpotentialtodeliver

socialvalue

Tender Document

Preparation

Brokeworkintotwocontractsinordertoreducebarriers

tosocialenterpriseinvolvement

Prepare

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ase

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pplierAnaly

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Servic

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,Regula

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&Policy

Environment

Category

Cyc

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CroydonCouncil

Needs analysis and


Identiedwaste/recyclingoutcomesandsocialvalueoutcomesrequired

Market & Supplier

Analysis

RecognisedthepotentialforinvolvementofSocialEnterprises


38 | 4.Casestudies

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TheCouncilwaskeentoensurethatsocial enterprisesdidnotencounteranyunnecessary barriersinrespondingtothetender.ToensurethiswasthecasetheCouncilsplitthefunding forthebulkywasteintotwocontracts.The rstcontractfocusedondeliveringbulkywaste removalandrecyclingandthesecondfocusedon thedeliveryofvocationaltrainingforhard-to-

reachpeople,suchasthelong-termunemployed, fundedbylocalNeighbourhoodRenewalFund money.Separatingthebasicservice(bulkywaste)fromthesocialservice(vocationaltraining)made awardingthetwocontractsmoreclear-cutandenabledLiverpoolCityCounciltobetransparentaboutexactlywhatitwaspayingfor.BulkyBobswonbothcontractsandwasthemostnancially competitivebidder.Thecontractworkedoutcheaperthanthe previousoneforthecouncil,withBulkyBobs respondingtoalmosttwiceasmanycallsper

yearthanthepreviouscontractor.BulkyBobsbenetedfromthesecurityofanannuallump sumpaymentforitsservices.

> What social value was achieved? TheCouncilprovidesawiderserviceforthe sameamountofmoney TheCouncilhasreduceditslandllcostsand

benetsfromBulkyBobscontributiontoreducingthecityscarbonfootprint

BulkyBobsemployslocalpeopleanduses localsupplierswherepossible,whichmeansit makesasignicantcontributiontothelocal economy

Longtermunemployedpeoplebenetfrom

realworkexperienceandmanygoontofull-

timeemployment Localfamiliesbenetfromthegoodquality,

affordablerefurbishedfurnituresoldby BulkyBobssells

BulkyBobsnowprovidesservicestotwo otherLocalAuthorities-Oldhamand Warringtoncouncils.

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4. CASE STUDY: Wakefeld Metropolitan District Council, the Yorkshire Purchasing

Organisation and Fresh PasturesWakefeld 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, or example, awareness raising and market making.

BackgroundService needs

& business

requirements reviewFreshPasturesisaCommunityInterestCompany(CIC)setupby2peoplewhowantedtotakeamoreinnovativeapproachtoprovidingmilktoschools.Aswellasprovidinglocalmilktheyalsowantedtoprovideemploymentopportunitiesforpeoplewithdisabilitiesandthelong-termunemployed.25%ofitsworkforcecomprisespeoplewithadisabilityandtheremainderarerecruitedfromthelong-termunemployed.Anyprotisring-

fencedforsocialbenetandploughedbackintothecompany.

Recognisedimportance

ofaddressingsustainabilityand

socialvaluein

commissioning for

nextphase

Market Development

Tookinitiativetoopen upthemarkettoSEs

andSMEsthroughinformation sessions

andsupport.

Prepare

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Category

Cyc

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CroydonCouncil

Needs analysis &


Includednewsustainabilityrequirementsinto desiredoutcomes

Perormance

Strategy & Plan

Reviewedprocurement approachandincorporatedsocialbenet%


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In2007contractsfortheprovisionoffreshmilk withYorkshirePurchasingOrganisation(YPO),apurchasingconsortiumforlocalauthorities,were dueforrenewal.WakeeldCouncilwaskeentoworkwithYPOtoestablishnewcontractsthat tookaccountofsustainabilityissues. YPOandWakeeldCouncilprocurementteamworkedtogethertodevelopaprocurementprocessthatrecognisedsocialbenets.5%ofthe totalawardcriteriawerebasedonsustainableandcommunityfocusedbenets.Theyalsoaimed toensurearangeofsupplierscouldbidby: Holdingatenderclaricationsessionwhere

theyrespondedtoquestionsaroundthetenderprocessandspecication

Holdingengagementeventsacrossthebusinesscommunitytoraiseawarenessaboutprocurementopportunitiesandgivenon-

traditionalcontractorssupportandguidance ontheprocurementprocess

TheSocialEnterpriseSupportCentrealsohelped thirdsectororganisationstodeveloptheir tenderingskills.

FreshPastureswasoneoftwosuccessfultenderersawardedframeworkcontracts.DairyFarmerswastheothersuccessfulcontractor-aco-operativeofregionalandnationaldairyfarmers.> What social value was achieved?Environmental:minimisingfoodmiles,recyclablecartonsSocial:employmentpolicyEducational:Aswellasprovidingchildrenwithmilkatschool,theyusethecartonstoeducate youngpeopleonhealthyliving,gooddietary planning,environmentalissues,socialinclusion,equalopportunityanddisabilityawareness. Economic:localproduce,communityfocusInacommissioningrelatedSROIimpactmappingexercise,FreshPasturesidentiedthatforevery1ofcontractdeliverable,59pofsocial returnwouldalsobederivedinenvironmental, educationandemploymentbenets.

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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 o a Best Value review by developing an outcomes based approach to commissioning which not only

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

BackgroundContract Review

In2005,aBestValuereviewoftheCouncilsmentalhealthdaycentresfoundthattheywerenotmeetingtheneedsofsomeoftheboroughscitiz