FALKIRK COUNCIL. Sustainable Procurement: The Falkirk Experience Presented by. David McGhee Corporate & Commercial Services Falkirk Council
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1 Sustainable Procurement: The Falkirk Experience Presented by David McGhee Corporate & Commercial Services Falkirk Council
2 Introduction Policy Background Process & Key Actions Pilot Contract Other CBiP Initiatives Critical Success Factors Questions
3 Introduction Sustainable procurement definition: 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 Sustainable Procurement Task Force
4 Introduction Sustainable Procurement Hierarchy Sustainable Development Social Issues Community Benefits Targeted recruitment and training
5 Introduction Falkirk s rationale: Increasing jobs, income and enterprise Tackling discrimination and disadvantage Maximising outcomes from Council expenditure Social Inclusion Community Regeneration Improved attainment and NEET
6 Policy Background National: Best Value and powers of well being Scotland s Sustainable Development Strategy Sustainable Procurement National Action Plan Public Procurement Regulations & EU Legislation Review of Public Sector Procurement Community Benefits in Public Procurement
7 Policy Background FALKIRK COUNCIL Falkirk Council: Strategic Community Plan Falkirk Council Corporate Plan Service Plans Regeneration Outcome Agreement Falkirk Action Plan Procurement Strategy
8 Policy Background Strategic Objectives Increase youth attainment Decrease long term unemployment Increase number of training opportunities Increase level of inward investment Increase level of Council spend locally (SME s) Increase local labour used in Council contracts
9 Process Adopted Analysis > 100 million of procurement spend Classification of expenditure Supplier Location Opportunity spotting Project objective Business as Usual Approach Model of Governance via Community Planning Partnership Implementation Plan Identification of Pilot(s)
10 Key Actions Policy guidance to staff Contract clauses; voluntary agreements; developer agreements and contract questionnaires Develop supply side to provide local labour Use in-house contracts as exemplar Review and revise contract strategy
11 Pilot Project 4 New High Schools 100 million project over 18 month period on 4 sites Minimum Contracted Outcomes Construction 1 Trainee per 10M in Construction Value Facilities Management 30% of all vacancies filled by priority clients returning to the labour market. All recruitment and vacancy advertising via Falkirk Council s Employment & Training Unit
12 Current Contract Position (January 2008) Outcomes - on site September 2007 > 4,000 weeks of employment 78 FTE person weeks 16 Apprenticeships (range of trades) 4 years 12 Other (GCO; Administrator; Plant Operators) 1.5 years Financial penalties for non compliance
13 Intake Total Wks Additional Combined Trainee Total Weeks post contract weeks GCO Joiner Bricklayer Electrician , Plumber H and V Trainees Adults Plant Op 1 Business Admin 1 Trainees Supernumery , , , FTE 37.5 FTE 78 FTE
14 Other Initiatives delivering CBiP Council Contracts BMD 15% of workforce training under Modern Apprenticeships scheme Aggregates and road salt materials - contracts redesigned and facilitated relocation of suppliers to Falkirk area Building & Civil s Material Contract Voluntary Agreements, e.g. Tyres HERO s project Estate environmental regeneration
15 Other Initiatives delivering CBiP (WIP) Home Improvement Programme Town Centre Regeneration (4 schemes) Falkirk Gateway Project Link Group Housing Regeneration Projects Home Care Contract HELIX Project Bo ness Flood Prevention Scheme
16 Critical Success Factors 1. Strategic and Corporate Ownership 2. Embed within established procurement processes 3. Review and opportunity spot understand your spend & assess labour content 4. Clear procurement strategy - start early 5. Lead by example with Contractors Inspire confidence 6. Regular dialogue with Contractors
17 Critical Success Factors Strong supply side support Track record Potential for cost neutral interventions Legal involvement - EU compliance essential, non-discriminatory Set firm, realistic and precise requirements Monitoring, evaluation and reporting system on deliverables
18 Q & A
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