Creative Procurement How to Support existing social enterprises

Transcription

1 Creative Procurement How to Support existing social enterprises Neil Whittenbury - Head of Neighbourhoods (neil.whittenbury@midlandheart.org.uk) The ICC Birmingham - 19th June 12

2 The Business Network for Social Enterprise & Social Value Melanie Mills Chief Executive

3 Agenda Midland Heart Background Midland Heart Approach to Social Enterprise Case Study: Environmental Services Procurement Questions Wider Discussion _ Public Services (Social Value) Act 2012 what does this change?

4 What is Social Enterprise...businesses with primarily social or environmental objectives whose surpluses are principally reinvested for that purpose in the business or community

5 Housing, Care and More

6 What does that mean? Trade for social and/or environmental purposes Reinvest profit back into the business or community of benefit Ownership and governance structures based on participation and not for personal gain Compete in the market like any other business

7 Community Benefit 27 local authorities Region Properties % Age The stock is unevenly distributed Nearly 50% in Birmingham Variance in stock numbers ; 10,700 in Birmingham to just 1 property in Oadby & Wigston. West Midlands 20, % East Midlands % South East % TOTAL: 21, %

8 Community Benefit Distribution of Stock across Local Authorities

9 And More Procurement The Options! Don t Procure In House Social Enterprise Work Existing Social Enterprise Partners Find new Social Enterprises to work with

10 In House e.g. Frost and Snow volunteers who are homeless or have experienced homelessness All proceeds to supporting people out of homelessness

11 Working with SE Partners Riots Response Working with Social Enterprise Partners

12 Back On Track Programme Targeting 20 young people vulnerable to ASB, offending, gang-related activity Addressing: Lack of training and opportunities Poor educational outcomes Lack of family support Alienation leading to harmful behaviours and affiliations Partners include ENTA CIC ( MAC-UK (

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14 The Unknown - Environmental Services Grounds Maintenance/ Cleaning Window Cleaning Approx 2.5m per annum Contract end 30 th November 12 1 Current Contractor 1 Contract

15 Proposed Social Value Appraisal Matrix High Financial Return Low Low Social Return High

16 What Customers wanted. Quality Price Contractors is based locally Employ local people Contractors takes on local apprentices Good staff training levels Environmentally Friendly

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18 Social Enterprise West Midlands (SEWM) Consultancy Role Understanding the barriers Reaching the market place

19 Opening up the Market Place turnover required trading history Insurance Liability Insurance Liability - Start Date not now Meet the Buyer Day

20 Meet the Buyer Day Approx 60 Contractors Presentation Networking Questions and Answers TUPE

21 PQQ Submissions 50% Big Contractors 50% Smaller Local Business s Pure Social Enterprise Submission Quality Outstanding Very Very Poor

22 ITT Invited 11 to tender 10 tender submissions Mix of The Usual Suspect Small Family Firm Pure Social Enterprise Joint Bid Large Contractor Partner with SE selected area s

23 ITT Scoring Each Lot its own contract Not Giving Extra Marks for Multi-Lot Price Discounts Scheme Pricing Social Value Score

24 Current Place Scoring Site Visits Contractor Interviews CONFIDENTIALITY!!

25 Next time? Yes we would do again and are! Focus How do we improve the quality of tender submissions of SE s Understanding; why some SE s at Meet the Buyer didn t apply Ensure Independent Procurement Support accessible Improve Communication Post SE Questions

26 Questions From You If you haven t got any

27 Questions to you? How do compare/differentiate/ award contracts based on Social Responsibility? Would this approach work for you? What do you like about the approach? What great idea s can you give for next time around? What would you do differently now the Public Services (Social Value) Act 2012

28 Public Services (Social Value) Act 2012 Legislation expected Summer 2012 Supporting socially responsible business Introduces concept of social value within contracts Aimed at instigating cultural change in commissioning Options to design new services in a participatory way and for commissioners to work with SME s, communities, local and social enterprises to deliver these Allows social value to be measured on a contract by contract basis Chris White MP Warwick & Leamington

29 Social Value Impact and outcomes weighed against price Concept of whole value Localism Community right to challenge Allowing smaller contractors in Increasing accessibility of contract opportunities Doing good is not a good enough reason to buy Product and service must be of market value Social value must be demonstrated and measured No competitive advantage

30 Registered Housing Providers Social Investment & Innovation More than housing providers Multiple engagement strategies Important community anchors Embracing localism opportunities Responding to economic climate and legislation Driving change

31 Public Services (Social Value) Act 2012 An Act to require public authorities to have regard to economic, social and environmental well-being in connection with public services contracts; and for connected purposes.