Social Value and DevolutionPanel Discussion

National Social Value Conference’17

Peter Wilding Head of Strategy Greater Manchester Combined Authority Lorraine Cox Director STAR Procurement

Rachael Morgan Procurement Manager West Midlands Combined AuthorityHaydn Brown Head of Procurement Strategy Birmingham City Council

Roger Forsdyke MD for Construction Southern Counties Willmott Dixon Moderated by Melanie Mills

Social Sector Engagement DirectorBig Society Capital

Deep Dive: Social Value and the Devolution Agenda

- Greater Manchester

• Peter Wilding – Head of Strategy GMCA

• Lorraine Cox – Director STAR Procurement

Greater Manchester Strategy: background• Greater Manchester Strategy is the overarching strategy that has set the strategic framework for

policy development across Greater Manchester since 2009.

• Sets out Greater Manchester’s approach to delivering the interlinked objectives of growing the economy and reforming public services

• Formally owned by the GMCA and the GM LEP, but buy in from partner organisations, private businesses, and the voluntary, community and social enterprise sector – as well as national government – is critical if it is to deliver its ambitions

• Decision taken in summer 2016 to refresh due to:

• the substantial devolution that is now underway;

• the impending Mayoral election and development of manifestos; and

• the changing economic and political climate, particularly the vote to leave the EU;

• “Big conversation” held, with online and face-to-face consultation, in winter 2016/17 to get views of residents on what they want from the strategy

• GMCA formal launch – 27th October 2017 – Mayor Andy Burnham

Our new strategic approach: from vision to outcomes

Next Steps:

• Develop the GMS Implementation Plan. This will include:o working with Treasurers on the financial requirements to deliver GMS up to 2020.o continuing to develop the performance dashboard for launch in April 2018 as a “State

of Greater Manchester" report; ando working with policy leads, and portfolio Chief Executives / Leaders to review portfolio

actions and interdependencies, and develop a 2-year Implementation Plan.

• Develop two key underpinning strategies:o Greater Manchester Spatial Framework; ando Greater Manchester Investment Strategy.

• Social Value Policy 2014:o Refresh; ando Reflect 2017 GM Strategy.o Measurement of SV across GM underpinning the Outcomes Framework

What’s different?

GM Procurement ‘Vehicle for

Change’

GM History

Multi-agency

Devo-NHS

Integration

Ambitious Targets

50%+ STAR/GM

SV Beyond 20%

Why is it working?

• Early Engagement:

• Mandate

• Focus on Shared Outcomes

• Service Re-Design

• Innovation from the Market/Users

Procurement Innovation

• Co-Commission:

• All Partners

• Consortia Bidding

• Route to Market (DPS/FPS)

• Evaluation/SV Strategy

• Outcomes

Procurement Delivery

Where’s the evidence? GM Learning Disability & Autism

Challenges?

* 22

* £300m pa (5+2)

* New way

* Buy-in (all)

* Co-Creation

* Lotting Strategy

Opportunities?

* Mandate

* Manage Market

* Pricing

* Bid-Once

* Service Users

* ENGAGEMENT!

Outcomes?

*

* FPS

* Providers (160/100/77)

* Evaluation

* SV Policy

* SV mini comp

* Training in SV

Contact Details:

• Lorraine Cox – Director STAR Procurement• (t): 07817 882169

• (e): lorraine.cox@star-procurement.gov.uk

• (w): www.star-procurement.gov.uk ( ) @STARProcurement

• Peter Wilding – Head of Strategy GMCA• (t): 07989 166556

• (e): peter.wilding@greatermanchester-ca.gov.uk

• (w): www.greatermanchester-ca.gov.uk ( )@greatermcr

Greater Manchester Strategy can be found at: https://www.greatermanchester-ca.gov.uk/ourpeopleourplace

Social Value and the Devolution Agenda

Rachael Morgan,

Procurement Manager

Who are WMCA?

We are 18 local authorities and four Local Enterprise Partnerships (LEPs) working

together to move powers from Whitehall to the West Midlands and its locally elected

politicians, who know this region best.

Leadership of the WMCA comes from the Mayor and the leaders of the seven

constituent local authorities, which have full voting rights. The leadership also includes the

chairs of the Local Enterprise Partnerships (LEPs) which are business-led organisations

that help build relationships between businesses and local authorities. Non-

constituent authorities, which include the LEPs and ten local councils from across the wider West Midlands region, have reduced voting rights but play a crucial role at board

level, helping to inform policy and drive forward the WMCA agenda.

Building a healthier,

happier, better connected

and more prosperous

West Midlands

The Strategic Economic Plan

Our Social Value Journey

• The WMCA Social Value Taskforce Group (SVTG) was formed in 2016.

• Our purpose: A collaborative approach to Social Value to Procurement within the West Midlands

• Representation from across the West Midlands

• With the help of The Social Value Portal we identified what Social Value meant to the West Midlands and common Themes, Outputs and Measures (TOMS) were identified.

• Consultation was key!

• September 2017: The WMCA Social Value Policy was approved

SVTF Group Formed in 2016

Social Value Meaning

Deprivation Analysis / TOMs

Consultation with key stakeholders

Policy approved by WMCA Boards

Policy Themes and Strategic Fit

Benefits of our Policy

• A collaborative and consistent approach

• Creation skills and employment

• A clear message to suppliers and communities

• More opportunities for Small and Medium-sized Enterprises (SMEs) and Voluntary, Community and Social Enterprises (VCSEs)

• Addressing the local needs of citizens.

• Promoting long term investment into our communities

• Improving life chances for all

What does the WMCA Social Value Policy mean to you?

Application in the Procurement Process Value Process Potential Outcomes and Results

Under £50,000 A light touch social value toolkit Innovation around one or two issues such as community volunteering or linking up with a local school. Suggested weighting 5%

£50,000 – EU Thresholds*

Application Themes, Outcomes and Measures (TOMs) included within the procurement process

Businesses will be expected to respond to the range of specific opportunities contained within the TOM Matrix. Suggested weighting: 5-10%

EU Thresholds and above*

Procurement Lead Officers will guide specifications and tender documents to ensure that considerations are made at commissioning stage and that TOMs are included within the tender process, ensuring that the evaluation scores and weightings are clearly set out

Businesses will be expected to respond fully to the TOMs matrix and commit to project specific deliverables that will be included within ongoing KPIs. Suggested weighting 15-20%

* For current EU thresholds please refer to https://www.ojeu.eu/thresholds.aspx

WMCA Social Value Targets Opportunities Year 1

01/04/17 –

31/03/18

Year 2

01/04/18 –

31/03/19

Year 3

01/04/19 –

31/03/2020

Total over 3

Years

New and Sustained Apprenticeships as a

result of the contract(s)

45 95 190 330

New opportunities for Not in Education,

Employment or Training (NEETS)

30 60 120 210

New and sustained training opportunities as

a result of the contract(s)

35 70 140 245

Jobs for long term unemployed 25 55 110 190

Voluntary Hours donated to community 21000 42000 84,000 147000

Expert hours provided for SMEs 900 1800 3,600 6300

Young offenders supported back to work 5 10 20 35

Tonnes of Carbon Dioxide saved 1250 2500 5,000 8750

Workforce placements weeks 525 1050 2100 3675

Social Value Add Figure £5m-

£10m

£10m-£20m £20m–£40m £35m-£70m

How can we make Social Value work

for you?

Next Steps • Application of policy to Procurement

Projects

• Toolkit for implementation of the policy

• Provide a portal to:

o Provide single point of contact

o Celebrate success

o Reach out to local communities for support

o Best practice / ideas sharing

o Realise collaboration opportunities

• Continue to engage with suppliers and communities

Thank you for Listening

If you would like to receive a copy of the WMCA Social Value Policy, please

email:

rachael.morgan@wmca.org.uk

Enabling Social Value through Collaboration and Innovation

Haydn BrownHead of Procurement Strategy & Development14th November 2017

Local Level - Challenges facing the Council

A smaller workforce –working smarter

Increased commissioning skills –how to be an intelligent client

Agile and flexible Innovative and entrepreneurial

Achieving more with lessLeaders who role model the new

- empowering decisions at all levels

Improved digital andIT capabilities

Working in partnershipand learning from others

Empowering citizens,preventing need

New models of working being considered – Engagement Hub

Improve the capabilities of the local supply markets including through social value commitments

Improved capability and training for staff

Our Council of the Future will be

Smaller and more strategic

The role of the Council will be less about direct service delivery and more about supporting a wider range of partnerships and providers, including social enterprises and the contribution of voluntary effort and the community.

Partnership based

The new role of the council will be more about empowering bottom up action and brokering partnerships between communities and organisations that contribute to the future of the city.

Devolution Deal

Devolution Deal 1• Investment programme of £36.5M p/a funding allocation over 30 years,

which is being used to create a £8bn ten year investment plan, to get the West Midlands moving and drive local growth.

• A new, directly elected Mayor for the West Midlands • Commissioning implications and opportunities

• Infrastructure• Housing• From tactical to strategic - joint commissioning plan

• For more information see summary

Devolution Deal 2 (being negotiated) • Includes talking to the government about a housing deal – more new homes

LGA response to the INDUSTRIAL STRATEGY COMMISSION’S FINAL REPORTThe LGA are saying “Devolving powers to councils will unleash the full potential of our local economies and radically transform public services by targeting money where its most needed and making the most of each place’s unique assets”.

Birmingham Business Charter - Local Support

Buy Local:• Support the local economy by choosing suppliers close to the point of service delivery where

possible.• Use Find it in Birmingham as the primary method of sourcing suppliers for contracts in

Birmingham, increasing the accessibility of opportunities to local businesses throughout the supply chain.

• Encourage their suppliers to endorse the principle of Buy Local throughout their supply chains.

• Where possible, commit to purchasing from businesses on the Find it in Birmingham website and from social enterprises and small businesses.

Partners in Communities:• Build capacity by supporting community organisations with resources and expertise in areas

with the greatest need, for example mentoring and working with youth organisations and services.

• Provide support to third sector organisations and work with third sector organisations to deliver services and contracts.

• Make accessible all sub-contracting opportunities to a diverse supply base including the third sector and local suppliers and provide mentoring and support to assist these organisations to tender for and deliver these supply opportunities where necessary.

• Pay suppliers no later than the terms stated in the primary contract if contracted to the Council, otherwise adopt a similar policy such as the Prompt Payment Code.

Local Opportunities

Since its implementation in 2010 membership of FindItInBirmingham has grown to over 32,000 organisations of which over 40% are Birmingham based and over 65% are in the West Midlands.

Over £3.6 billion pounds worth of public and private sector adverts have been posted on the website since its launch

Planned Procurement Activity Reports are published on FIIB to notify the market of forthcoming opportunities.

We publish adverts over £10k which is considerably below the threshold for Contracts Finder at £25k.

Monthly breakfast meetings are held for suppliers which regularly have an attendance of over 100 delegates on a range of subject matters which are helpful to local SMEs.

Planned events for the future cover the city’s infrastructure works in November 2017 and a Combined Authority Event for HS2 in February 2018.

How to Tender and Win Business presentation: https://www.birmingham.gov.uk/downloads/file/8029/how_to_tender_and_win_business

Commissioning Strategy 2017+ The Direction of Travel

THEME OBJECTIVE FROM TO

9.1 Delivery of outcomes and

value for money

Cashable savings from service delivery Engineering Value through prevention, innovation

and demand management

9.2 Increasing social value

locally

Suppliers offering short-term social

value commitments

Targeted matching to needs and sustainable

relationships

9.3 Improving commissioning

with partners

A linear, tiered provision, having

fewer, larger providers

More responsive provision, either System-led or

through self-organised, local providers

9.4 Enabling Citizens through

solution design &

delivery

Delivering services to people Greater Citizen Engagement with co-production &

personalisation

9.5 Improving

commercialism and

income growth

Recovering costs within business units Generating a surplus within business units

9.6 Appropriate governance

and assurance

Process heavy governance through

Council’s Standing Orders &

Procurement Governance

Governance that ensures probity but is seen more

as an enabler to achieve local and regional

outcomes

9.7 Enhancing capability and

capacity to deliver

outcomes

Re-alignment of skills due to staff

reductions, managing the financial

pressures and the change agenda

A flexible workforce with the breadth of skills to

deliver the Council of the Future as part of the

West Midlands Engine

OVERALL STRATEGY A Commissioning Strategy for

Birmingham City Council

The potential for a Joint Commissioning Strategy

city wide with partners

Social Value in the Commissioning Strategy• Implement the updated Social Value Policy, Living Wage Policy and Birmingham

Business Charter for Social Responsibility

• Ensuring specific social value outcomes are included in commissioning activity

• Maximise the social value achieved in the region

• Promote the BBC4SR brand to increase awareness, support and pride of the joint commitment to social value

• To increase the number of organisations voluntarily signed up to the BBC4SR

• Determine if a sustainable model can be achieved to meet SV needs and maximise impact locally without the reliance on public sector funding

• Continue to push this agenda forward to enable greater achievements, leaner systems, and more unified approaches

https://www.birmingham.gov.uk/downloads/download/1656/commissioning_strategy_2017

Commissioning Strategy - alignment to LGA and EU Innovation Reports

LGA Report: “focusing on the provision of practical help and guidance for councils both in the procurement of innovative solutions and in procuring innovatively”.

It supports the European Commission consultation guidance on “Public Procurement of Innovation”. Their suggested approach supports modern, digital and professional procurement by:• Encouraging the use of innovative, green, and social criteria

• Improving access to markets for SMEs

• Supporting cooperation among public authorities

Task & Finish Group - Phase 1Team: Nigel Kletz (Sponsor BCC), 7 LA’s, Cabinet Office, LGA, CCS, Innovate UK, Ferrovial Services and Independent Chair

Project remit:• Consider the challenges in the procurement of innovative solutions • Consider risks and opportunities • Consider intellectual property issues • Identify new skills and development needed• Sources of funding, expertise and best practice• Communication and capacity building• Focus on practical recommendations, include selection criteria

https://www.local.gov.uk/encouraging-innovation-local-government-procurement

Innovation in Social Value. 2015 review of the SV Act:• No mention of tools, e.g. pre-commercial procurement to develop SV enhancing solutions. • No mention of resources available e.g. Innovate UK support/finance programmes. • Challenges:

• Contracting Authorities: How to build on the more flexible procurement approaches already brought about by social value considerations to embed innovative cultures more deeply.

• Suppliers: Does it help to be told where to target social value commitments, or does it constrain your SV offer? Are the varying C/A approaches to Social Value confusing and is there a need for greater consistency?

Public Procurement of Innovation

Corporate Procurement Services

@bhamcitycouncil

/birminghamcitycouncil

https://www.finditinbirmingham.com/feature/charter

bbc4sr@birmingham.gov.uk