Community Benefit in Public Procurement Clauses. 27 th October Jo Mitchell, Scottish Government

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1 Community Benefit in Public Procurement Clauses 27 th October 2009 Jo Mitchell, Scottish Government

2 "Public procurement can change lives for the better and make Scotland a wealthier and fairer place. Targeted recruitment and training clauses can increase labour market participation for those who need it most. "This is procurement reform in action, a smart model that obtains the maximum possible value from public spending.

3 Construction Employment Integrator Employment Planning Industry Capacity Likely Skills Demand Setting target for job capture Notifying providers of future skills needs Capturing Demand Promoting adoption of TR&T Providing advice and support to LAs/procurers on negotiation of appropriate clauses Compiling data on captured jobs Monitoring and Evaluation Employer compliance Effective support Sustainable jobs Additionality and VFM Continued workforce development Ensuring provision of appropriate post recruitment support to maximise potential Providing routeways Notifying captured jobs to Job Centre Plus Providing access point/gateway for recruitment to captured jobs Arranging delivery of additional pre-recruitment training and support (pathways to work)

4 Community Benefits Legal Position Public Contracts Regulations (Scotland) Regulations 2006, Regulation 39 (1) A contracting authority may stipulate conditions relating to the performance of a public contract, provided that those conditions are compatible with Community Law and are indicated in - (a) the contract notice and the contract documents; or (b) the contract documents (2) The conditions referred to in paragraph (1) may, in particular, include social and environmental considerations.

5 Community Benefits - Policy Overarching requirement of value for money the optimum combination of whole life cost and quality to meet the end user s requirements. Public Bodies may have powers and policies enabling them to address social exclusion, including well-being powers For example - Use of Community Benefit Clauses to Achieve a lasting legacy for Glasgow from the 2014 Commonwealth Games (Legacy Policy)

6 Glasgow City Council (GCC) Approach Three separate strands: Targeted Recruitment and Training Supply Chain Development Developing Social Enterprises

7 Procurement Process PQQ requirement: Demonstrate where you have delivered or been involved in the delivery of Community Benefit using specific examples ITT requirement: Demonstrate the Community Benefit to be achieved through the delivery of this contract and the overall management process

8 Sources of Support Targeted Recruitment and Training; Local Regeneration Agencies Sector Skills Councils Bridges Programme SME and Social Enterprises; The Supplier Development Programme Business organisations Third Sector groups

9 Achievements Games Village Site Remediation Contract Contractor VHE 6 job opportunities (10%) NISA Velodrome Contractor - Sir Robert MacAlpine - 20 job opportunities (10%) Games Village Contractor City Legacy Consortium job opportunities (10%) All contractors will advertise sub-contracting opportunities.

10 Other Examples Glasgow Housing Association - 10% of new entrant trainees engaged in a GHA agreed training programme 5% of person weeks to be available for unwaged work experience placements Scored at between 5 and 12.5% of the quality score Raploch URC CBIP, one of 5 parts of tender, each part evaluated by a specialist panel 225 TR&T places, SME and Social Enterprise support achieved on 110m spend Further voluntary places achieved post-award

11 The Challenge Identify the products and services that your authority procures that generate the greatest social risk and have the greatest capacity to enhance social outcomes.

12 Lessons Learnt Community Benefit clauses can be legally included in public procurement projects Contract suitability and capacity needs to be assessed on a case-by-case basis set clauses on a case-bycase basis Community Benefit clauses form a significant part of the procurement process TR&T clauses require knowledge and understanding of supply-side arrangements Projects benefit from a project champion with adequate resources and high-level backing Include Community Benefit considerations at all stages strategy formulation, advert award

13 Lessons Learnt continued Cut your teeth on a small contract Set firm and realistic expectations Develop and monitor precise requirements PQQ information on previous recruitment and training activity Tender Process - Submit employment and training method statement as part of tender Include employment and training targets in the KPIs Consider formation of working groups linking authorities, contractors and training sources Support and funding is often available for TR&T and supplier development A large amount of path-finding work has been carried out to assist organisations new to this field

14 Further Sources of Information Social Issues in Public Procurement ( Community Benefits in Public Procurement - Report ( Community Benefits in Public Procurement Guidance Note (

15 Contact Jo Mitchell Procurement Policy Manager