Delivering Social Value Through Effective Frameworks
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1 Delivering Social Value Through Effective Frameworks
2 Victoria Brambini Managing Director
3 David Boyer, Warrington Borough Council Phil Wright, Balfour Beatty John Simons, Scape Group Alison Ramsey, Scape Procure
4 National Social Value Conference Delivering Social Value through Effective Frameworks David Boyer Assistant Director Transport & Operations Warrington Borough Council
5 At the Heart of the Northern Powerhouse
6 Warrington a real success story Performance High wage - low welfare Highest employment rate in UK Largest commuter catchment outside M25 Best Performing City in the North West Third highest business growth in UK Second best Quality of Life in UK Start-up Hotspot Second highest 16/17 yr olds in Education or Training Home to the largest cluster of Nuclear sector businesses in UK Ingredients of Success Location & connectivity Skills and people Lifestyle Clustering An administration and culture that welcomes growth Business friendly Former New Town Warrington delivers
7 Objectives / Challenges Delivery of Council Objectives Protect the most vulnerable Grow a strong economy Build strong, resilient and active communities Create a place to be proud of Areas of Deprivation / Closing the Gap Austerity Capital Rich / Revenue Poor Missing New Town Infrastructure Very accessible / but Congested
8 Solution Grow to survive Ambitious growth proposals Council prepared to borrow money Fund projects Provide revenue for capital / revenue areas Maximise success at funding opportunities Make sure we deliver Build objectives into procurement strategies Frameworks delivery & social value
9 Public Services (Social Value Act) 2012 The Act places a legal obligation on local authorities to consider the social good that could come from the procurement of services prior to embarking on the procurement process. Where the authority deems that social value can be derived it requires that consultation with potentially interested parties should be undertaken prior to a procurement. Only required for services contracts above OJEU threshold. Review of the Social Value Act in 2015 recommends the measures should be extended to works and goods contracts.
10 Objectives in delivering social value Warrington is committed to : Supporting the local economy including SME s, voluntary and social enterprise sector Delivering at door stop level Clauses in contracts to demonstrate both social value and FVM Transparent and proportionate processes and contracts Contract Management to measure social value outcomes Paying suppliers promptly Social Value will not override value for money objectives but will enhance the offer by providing tangible and measureable outcomes.
11 Why the Scape Framework? Major Procurement / Delivery Advantages Early Contract involvement better design / VfM Reduced project / procurement timescales Reduced project costs particularly procurement More surety of project costs / outturns More certainty on delivery Appointed Balfour Beatty through the Scape Framework Social Value not initially on radar as advantage soon was
12 Birchwood Pinch Point Project 5.4m Project Delivered on time and to budget Massive business and resident positive feedback Balfour Beatty assistant with using social value as a measurement tool The success was recognised with a Social Value Award from the Civil Engineering Contractors Association The results were
13 Social value outcomes This has helped Warrington evidence to the LEP that the money was invested wisely and locally
14 Long-term social value outcomes Warrington have a significant programme of infrastructure valued at over 260m e.g. M62 Junction 8, Western Link, West Rail Station, Waste Transfer Station, Warrington East Phase 3 Programme of work provides opportunity to develop careers for local people, not just employment on a project by project basis, ensuring sustainable employment Enables partnering with local schools and colleges, upskilling the industry and helping to address the industry skills gap Generates economic growth Secure pipelines of work support investment in, and development of, the supply chain
15 Thank You David Boyer Assistant Director Transport & Operations
16 Phil Wright Framework Director
17 Social Value The Contractor s View
18 Corporate Social Responsibility Old Ideas New Approach Social Value Community Benefits Corporate Responsibility Social Sustainability
19 Social Value is a way of thinking about how scarce resources are allocated and used. It involves looking beyond the price of each individual contract and looking at what the collective benefit to a community is when a public body chooses to award a contract A Change Of Mind-Set Social value asks the question: If 1 is spent on the delivery of services, can that same 1 be used, to also produce a wider benefit to the community? Social Enterprise UK
20 Social Outcomes Improved wellbeing Enhanced environment Good member of society Better business
21 A good member of society - Giving something back Business Outcomes A good employer - Attract and retain the best staff Better understanding - What do customers really want? Provide true added value, leading to repeat business Enhance reputation
22 Long-Term Commitments and Partnerships Over 10 years working with the Prince s Trust Members of the 5% Club Armed Forces Corporate Covenant
23 Frameworks
24 Social Value Providing Effective Frameworks
25 John Simons, Head of Procurement & Audit Alison Ramsey, Frameworks Coordinator
26 Frameworks What is a framework? Long term agreement - Duration usually 4 years, maybe longer Single or Multiple Contracting Authorities Single or Multiple economic operators Multiple operators Direct award or mini competition Single operator Direct Award/Early Engagement Single or Multiple lots
27 Benefit of Frameworks Provides speed to market and flexibility Build long term relationships with suppliers Greater opportunity for collaboration with all stakeholders Suppliers can plan (Social Value) Supply chain stability Drives economies of scale Demonstrates Value for Money Certainty
28 Tender Process Restricted Procedure Two Stage (PQQ/ITT) Allocation of Marking Criteria: Price = 40% Quality = 50% Interview =10% Quality Sub-Criteria (50%) Social Value = 20% Collaboration = 40% Efficiency and Effectiveness (Method of Operation) = 40%
29 Tender Process Information Issued to Bidders: Copy of Scape s Social Value policy Social Value Guidance document Clear instructions on Social Value in ITT
30 Evaluation/Assessment Demonstrate: Social Value is embedded into their method of operation Continual improvement processes degree thinking Evidence: Social Value is embedded into the organisation Social Value policy is aligned to SV legislation Performance Management Social Value outcomes Interview: Social Value presentation
31 Delivering Social Value Outcomes The procurement process is key to delivering Social Value Outcomes which are evidenced through: Key Performance Indicators (KPIs) Themes Outcomes Measures (TOMs) Project Commitments Framework Commitments
32 Performance Management
33 Performance Management Key Performance Indicators (KPIs): Time and Cost Local Labour Local Spend SME Engagement SME Spend Micro Business Engagement Micro Business Spend Health and Safety Defects Waste Diversion Fair Payment Client Satisfaction Supply Chain Satisfaction Considerate Constructor Scheme Commitments Employment and Skills Plan
34 Performance Management
35 TOMs (Themes, Outcomes and Measures) Theme Outcome Growth and jobs More local people in work Measures Units Value No. young offenders employed No. people 34,000/per A resilient third sector No. voluntary hours No. hours 13.57/hr Vulnerable people better supported Spend in local supply chain spent Local spend Reduced CO2e tco2e 30/tCo2e Fair pay Promote local business Healthy communities Lower waste and littering Greener and cleaner Reduced carbon emissions Total Social Value = Sum (Measures * Value)
36 Celebrating Success
37 Social Value
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