SOCIAL VALUE

Legal Implications

Clarissa EvansCommercial Team Manager

Legal Implications

•Nothing has changed with the Public Contract Regulations 2006

•The Public Contract Regulations 2006 don’t say WHAT to buy – just HOW to buy it!

•The Public Services (Social Value) Act is new legislation at the Pre-Procurement stage

•Received Royal Assent on 8 March 2012.

•Came into effect on 31 January 2013.

•PPN 10/12 published 20 December 2012.

Public Services (Social Value) Act 2012

•To practically support “socially responsible business practices”•To create “a culture change across commissioning in the public sector”•To strengthen “the hand of social enterprises bidding” for contracts•To open “the door to better collaboration between commissioners, communities and social enterprises”.

Aims

Definition?

• The definition of social value as created by The Sustainable Procurement Task Force and widely used in Scotland, Wales and England. They define it as,

‘a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits to society and the economy, whilst minimising damage to the environment’.

At pre-procurement stage consider:

• how proposals may improve the economic, social and environmental well-being of the locality; and

• how those improvements can be secured through the procurement process.

• Consider whether to undertake a consultation.

Obligations

• Big Society

• Less Resources / Increase Demand = innovation

• Maximum VfM in austere times = not necessarily the cheapest option

Why do we need this?

Applies to “relevant authorities” s. 1(1)

•contracting authorities under the Procurement Regulations –

s. 1(15)

Pre-procurement only – s. 1(1)

•“proposes to procure or make arrangements for procuring”

•comply with requirements “before starting the process of

procurement”

Who? When?

Where?

Obligations – s. 1(3):

•“how what is being proposed to be procured might improve the economic, social and environmental well-being of the relevant area”; and

•“how, in conducting the process of procurement, it might act with a view to securing that improvement”

Where?

“Relevant area”:

•the “area or areas” of the relevant authority / authorities where the contract(s) are intended to be made – s. 1(4)

•- where the authority primarily exercises its functions (in the UK only) – s. 1(5)

• The Act only applies to public services contracts and

framework agreements to which the Public Contract

Regulations 2006 apply

• Must Consider matters which are relevant and

proportionate to what is proposed to be procured

• If there is an urgent need social value can be disregarded

– not if the authority caused the urgency

What?

Whats not covered?• Service contracts awarded by calling off

from a framework

• Goods and Works contracts covered by the Public Contract regulations

• Service contracts below the EU threshold (£173,934)

• Contracts outside of the scope of the Public Contract Regulations

What is pre-procurement

PPN 10/12 – “the stage of the commissioning process where services are conceived and are designed and specifications developed and engagement with partners, stakeholders and current and potential providers takes place”

Ends when .…

• OJEU notice – s. 1(2)(a)• Advertisement seeking offers or expressions of interest –

s. 1(2)(b)• Contacting a person to seek an offer of expression of

interest – s. 1(2)(c)• Responding to an unsolicited offer or expression of

interest – s. 1(2)(d)• Entering into a contract / framework agreement – s. 1(2)

(e)

Consultations

“whether to undertake any consultation” as to: – s. 1(7)•how the proposal will improve the economic, social and environmental well-being of the relevant area;

•how it might act with a view to securing that improvement in the procurement process

But – urgency:•can disregard the requirements if necessary – s. 1(8)

•but not if CCC has caused undue delay – s. 1(9)

And – proportionality – s. 1(6):•for how to secure the improvement through the procurement process

•relevance

Implications for CCC

Liz WeltonAssistant Director

Procurement

So what does this mean for CCC?

• Opportunity to use procurement power wisely in the local economy.

• new requirement for pre procurement process• Consultation• Including social considerations in specifications• Evaluating against those specifications• Working with contract managers and specialist

colleagues to ensure delivery of social value

Company, supplier, provider involvement

What does pre-procurement mean?

Business Charter for Social Responsibility

Coventry’s business community has a corporate and social responsibility to:

• Ensure the future prosperity of Coventry, its businesses and all its citizens

• Value and respect the needs and aspirations of the diverse communities in Coventry

• Enhance social opportunity and cohesion in a dynamic and changing business environment

• Help to develop improvements for disadvantaged neighbourhoods and people

• Create and maintain a sustainable, clean, safe and attractive environment for living, work and leisure

• Recognise and promote Coventry’s diversity as a major asset

Who should we be working with?

• Internally– Commissioners– Economic development and regeneration– Sustainability– Equality– Corporate parenting– Risk and Health & Safety

Who should we be working with?

• Externally– Voluntary sector– Social enterprises, mutual's etc.– Private sector– Local Enterprise Partnerships (LEP’s)– Interest groups e.g. Federation of Small

Businesses, Chamber of Commerce etc.– Academic institutions

Risks

• Risk of challenge if large nationals think the local economy is given disproportionate advantage in evaluation

• Risk of challenge if working with local groups within the local economy leads to perceived exclusion of particular sectors of the market

Marmot: Improving Life Chances

Working Together DifferentlyBerni Lee- Consultant in Public Health

Marmot: Improving life chances• 1 of 7 Marmot Cities• 2 year programme with external support to accelerate

activities to improve life chances & close the gap• Cross –council initiative involving Officers & Members • Marmot Steering Group formed to review progress on

activities across the council & confirm contributions from other local partners including CCG

• Programme Plan and Indicators to be agreed by end May.

Inequalities in Coventry

The impact of the economic downturn

UCL Institute of Health Equity have been commissioned to:

•Explore evidence for the potential effects of the economic downturn and the welfare reform in Coventry.

•Understand, predict and monitor the health effects of local changes in housing, employment and income.

•Support Coventry City Council to mitigate the negative impacts by providing recommendations for suitable approaches, and measure the impact of these efforts.

•Completion date - September 2013

Social Value and Health Inequality• Equalities impact• Local Supply Chains• Jobs and Apprenticeships• Work place health and wellbeing charter• Sustainable environment