National Social Value Conference 17

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1 National Social Value Conference 17 Innovation and Best Practice Panel Discussion Cindy Nadesan Contracts and Supply Specialist Orbis Terry Brewer Public Sector Executive Social Value Portal Ailbhe McNabola Head of Research and Policy Moderated by Darren Knowd Corporate Procurement Manager Durham Council

2 Working in partnership Promoting & Mainstreaming the Public Services Social Value Act (2012) Cindy Nadesan MBA. BCom Contract & Supply Specialist

3 Our Social Value Journey Winner of the 2017 Social Value Awards for Promoting and Mainstreaming the Social Value Act Move to BAU Orbis Social Value Measurement Charter (2015 /16) Orbis Social Value Strategy (2015) Social Value Act Review (2015) SCC Social Value Strategy (2013) We Are Surrey & Surrey s Social Value Marketplace (2016) Social Value Maturity Index: SV Taskforce (2016)

4 Social Value Measurement Charter 4 Themes, 10 objectives, 10 outcomes & 35 measures 14 measures: Unit Cost Database v1.4 e.g. Apprenticeship level 2 ( 1316) or Job offered to NEET s ( 14,438) 14 measures: financial proxies developed through consultation and benchmarking e.g. volunteer rate p/hr, expert rate 25 p/hr, facilities for community groups 50 p/hr 7 measures: suppliers quantify commitments in financial terms e.g. training courses, fundraising

5 Procurement Process

6 Key Benefits of a Social Value Charter Promotes Fairness, Transparency, Proportionality Eliminates subjectivity Quantifiable value delivered by suppliers Facilitates innovation and collaboration Leverages spend to support local priorities

7 Supplier Resources Supplier Guide to Delivering Opportunities for Employment and Skills Development in Surrey Supplier Guide to Delivering Opportunities for Employment and Skills Development in East Sussex To identify opportunities to deliver community benefits in Surrey visit Surrey s Social Value Marketplace Business Guide VCFS Guide To identify opportunities to deliver community benefits in East Sussex supportyourcommunity@eastsussex.gov.uk To raise awareness on Modern Day Slavery in supply chains view Concrete Tackling Modern Slavery in the Construction Sector Review Guidance on Modern Day Slavery Act (2015) to understand regulatory requirements and best practice

8 Social Value Marketplace:

9 Short Breaks Service Contract Value 2.96m approx. Term 3yr 4m ITT 10% weighting / 3 lots Suppliers 25 Social Value 8.8m approx.

10 Orbis Frameworks Construction Professional & Technical Services Lots 2 9 Supplier Spaces Suppliers Social Value Requirement Baseline: 10K per annum Project: 5% mini-competition Social Value Commitment: 520K min p.a.

11 Working in partnership Develop a Social Value Marketplace for ESCC Implement the Orbis Social Value approach in BHCC Deliver Contract Management Value Proposition Collaborate nationally and internationally to develop opportunities that create positive social outcomes locally

12 Collaboration & Engagement Key Messages Resource based view Benefits realisation Working in Partnership

13 Social Value in Commissioning and Procurement Terry Brewer, Public Sector Executive and Chair, Local Government Association Social Value Task Force

14 Agenda Issues with SV Act Addressing the SV Act issues Case studies of benefits obtained Measuring SV Discussion

15 What are the issues in delivering Social Value? There are restrictions on seeking SV in contracts:- Must be relevant to the requirements of the contract Only applies to certain contracts May not discriminate e.g. cannot say apprenticeships may only be offered to local residents only As a result can be difficult to seek good SV offerings from bidders in tenders and makes it complicated for commissioners/procurers

16 Delivering Social Value through Procurement Addressing the SV Act - 1 Social Value Policy provides golden thread Strategic Political Operational Engaging with Members very important link directly to Council Plan Standardising SV in all procurements over K Adopting a non-prescriptive approachsetting out areas where contractors might be able to assist deliver our aims

17 Addressing the Act -2 Incentivising SV offers from contractors by allocating a percentage of the quality/price score in procurements to SV e.g. Coventry 10% Birmingham 10-15%, Hounslow 20% Manchester 30% Need to enable bidders to submit their SV offers in an open, fair and transparent way. Contract management very important to ensure SV offers are delivered and benefits realised Develop dashboards so Members, residents etc can be informed about what has been achieved.

18 Case Studies

19 Cowen Avenue Project Description Harrow Council was looking to appoint a contractor to carry out refurbishments works to 1-46 Cowen Avenue, an existing residential block arranged over 3no. Lowrise buildings constructed c. 1960, each comprising 4 storeys of multi-occupancy residential accommodation (ground and floors 1-3), plus lower ground floor of ancillary space. Key works include: Installation of external wall insulation Interior Works Mechanical and Electrical Works Contract Value (Estimated) - 1.1m and 1.3m Contract Term - 9 months

20 Cowan Avenue Evaluation Criteria Quality / Technical Area weighting Quality Weighting Project Examples 30% Delivery of the Specified Requirements 30% Programme of Works 10% Resident Communication 10% Key Performance Indicators 10% Health & Safety 10% Total for Quality/Technical 100% Quality Threshold 20% out of the available 30% Social Value (via the Social Value Portal) * Area weighting Commitments 70% Supporting Method Statements 30% Total for Social Value 100% Commercial - Cost Area weighting 30% SV Weighting 10% Commercial Weighting Cost submission 100% 60% Total 100%

21 Cowen Avenue Tender Submissions

22 Cowen Avenue Tender Submissions There was a very healthy spread of proposals and SVP allowed us to compare one to the other and justify our decision to award. Item Average Highest Number of apprenticeship opportunities to be offered to local residents Number of individuals provided with meaningful work experience Number of taster events to be held during the duration of this contract Number of young people supported through delivering employability support Number of Harrow residents to be employed on the contract Number of NEW jobs created and sustained as a result of the contract Time allowed for all staff who volunteer for community work (hours) Number of NEW job opportunities created or sustained for Long term unemployed Number of NEW job opportunities created or sustained for those struggling to find work: NEETs Support the local economy by spending X within local supply chain. 122, ,000 Support provided to local companies to build supply chain e.g. by organising 'meet the buyer' events Provide business advice to local supply chain to help build capacity Support local third sector organisations through the supply chain by spending of total expenditure with community and voluntary sector providers Reduction in baseline operational carbon emissions on (reductions against a 3 year 8.8 baseline (tco2e ) 20

23 Practical Delivery Example ICT Services Contract Highlights of achievements: 5 Harrow-based employees 95k spend with Harrow-based SMEs Sponsorship Harrow s Heroes x 2 Participation in Harrow Means Business Sent 9 students from Hatch End School to Wired Next Generation conference in London with Innovation Director Data centre improvements will save 55 tonnes CO2 per year Supplier engagement of all 10 critical suppliers New IT equipment refurb/recycling programme in place All delivery team members trained in Sustainability, Social Value and Equality, Diversity & Inclusion Coming up: apprenticeships, work placements, technology contests for schools, Digital Inclusion activities, advertisement of jobs through local channels

24 Delivering Social Value What Next? N Can we use SV to keep the Adult Social Care home or the library open? How can contractors to Councils be connected to VCS organisations? How can we involve large companies who are not our contractors? Is it possible to obtain SV benefits in the planning processes?

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