Birmingham Social Value Policy

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Social Value Policy

1.0 BACKGROUND

1.1 On the 31st January 2013 the Public Services (Social Value) Act 2012 becamefully operational. The Social Value Policy described here, which will be reviewedin one years time, sets out the key principles and actions whereby the Councilendeavors to embed practical and effective commissioning for social value inevery aspect of its procurement, commencing (as the legislation requires) at thepre-commissioning stage.

1.2 While the Act only requires relevant authorities to consider social value in servicecontracts (and goods or works contracts where there is a service element) abovea prescribed financial threshold, the Councils implementation of the duties in theAct will be as wide as practicable and the Council will seek to secure social valueoutcomes from its commissioning activities

(i) with all providers,(ii) for services, works and goods, and(iii) for all contract values.

The Council will also consider other delivery models, including social enterpriseand mutual models, where such arrangements may deliver greater social value.

2.0 WHAT WE MEAN BY SOCIAL VALUE

2.1 The Act states:

If a relevant authority proposes to procure or make arrangements for procuringthe provision of services, or the provision of services together with the purchaseor hire of goods or the carrying out of worksthe authority must consider howwhat is proposed to be procured might improve the economic, social andenvironmental well-being of the relevant area and, in conducting the process ofprocurement, how it might act with a view to securing that improvement. It mustalso consider whether to undertake any consultations as to matters to beconsidered under that process.

For the purposes of this policy we refer to this improvement of wellbeing associal value. In order to implement this we seek measurable, verifiable socialvalue outcomes that:

(i) are relevant to the purpose of the commissioning,(ii) can legitimately be included in contract specifications and(iii) contribute to achieving the Councils priorities (as described in the Leaders

statement July 2012 and the Councils Business Plan and Budget 2013+):

2.2 Examples of Social Value policies include:

(i) Local Employment


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Create employment and training opportunities for local people especially in targetareas.

(ii) Buy Birmingham First

Take account of the social and economic impacts of buying locally whencommissioning and contracting, thereby reducing unemployment and raising the

skill level of the local workforce.

(iii) Partners in Communities

Play an active role in the local community and community support organisations,especially in those areas and communities with the greatest need.

(iv) Good Employer

Support staff development and welfare and adopt the Birmingham Living Wagewithin their own organisation and within their supply chain.

(v) Green and Sustainable

Commit to protecting the environment, minimising waste and energy consumptionand using other resources efficiently. These commitments will also apply to theirsupply chain.

(vi) Ethical Procurement

Charter signatories will commit to employing the highest ethical standards in theirown operations and those within their supply chain.

However this list is not exhaustive and each case must be considered on itsmerits.

3.0 THE POLICY CONTEXT

3.1 The strategic context for social value outcomes derives from the following keyCouncil policy drivers:

Leaders statement (June2012), specifically:

a) To tackle inequality and deprivation, promote social cohesion across all

communities in Birmingham, and ensure dignity, in particular for ourelderly and safeguarding for children.

b) To lay the foundation for a prosperous city, built on an inclusiveeconomy.

c) To involve local people and communities in the future of their local areaand public services a city with local services for local people

Giving hope, changing lives (the Social Inclusion green paper).

4.0 IMPLEMENTATION


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4.1 The Council will embed a clear and unambiguous message about our intention tosecure social value through our commissioning and procurement every time wecommunicate with the marketplace.

4.2 On commencement of each and every commissioning exercise service

specifications and/or existing service designs will be interrogated to examine:

a) Why the service is being commissioned is it still relevant and what are wetrying to achieve? (Baseline service outcomes.)

b) Undertake service-user, community or marketplace consultation or research toredefine or confirm needs and create opportunities for co-design / co-production? (The case for service redesign or other delivery options.)

c) The additional social value outcomes we should be seeking to derive from thecommissioning. (The social value contribution the commissioning can

make to the Councils strategic priorities.)

4.3 The Council will continue to work with Birmingham & Solihull Social EconomyConsortium (BSSEC) who have funding to work with the Council to developframeworks and tools to assist with this that complement the Councils existingtools and approaches for securing social value including:

The Procurement Framework for Jobs and Skills.

Birmingham Business Charter for Social Responsibility.

The Living Wage campaign.

The Councils Service Redesign & Commissioning Toolkit.

5.0 ENABLING SMEs & SOCIAL ENTERPRISES TO PARTICIPATE INBIRMINGHAM CITY COUNCIL COMMISSIONING REQUIREMENTS

5.1 It is vital that in seeking Social Value outcomes the Council will:

a) Promote commissioning and procurement opportunities as widely and asinclusively as possible, to allow all types of providers, including socialenterprises, voluntary organisations, SMEs, and micro-businesses(collectively termed smaller providers), to access the information they need

in order to be able to tender in a timely fashion.

b) Hold pre-tender awareness events where this is appropriate.

c) Seek to avoid smaller providers being inadvertently disadvantaged in thetendering process by financial arrangements, insurances or other thresholdsbeing set at an unnecessarily high level.

d) Consider splitting or disaggregating contracts, to provide opportunities tosmaller providers. It is vital that in seeking social value outcomes the Councildoes not inadvertently or unnecessarily exclude smaller providers whilst also

considering the need for the Council to achieve Best Value through itsCommissioning and Procurement activity.


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6.0 REPORTING ON SOCIAL VALUE

6.1 The Council will:a) Report on the social value outcomes achieved through its commissioning and

procurement activities annually, ensuring that this report:

(i) is in an accessible format and language and

(ii) helps all stakeholders understand the Councils purposes andachievements in seeking social value. Suitable KPIs for reporting willbe developed and tested (e.g. the proportion of contracts that havesocial value outcomes included).

b) Work with partners, to develop practical and proportionate methods to enableproviders to evidence the social value outcomes they have achieved and toensure that these methods are cost-effective for both providers and theCouncil as purchaser.

6.2 The Council will work with partners, to ensure that it has in place practical toolsand frameworks to assist with the above that:

(i) complement the Birmingham City Council Service Redesign & CommissioningToolkit and

(ii) do not have negative financial or staffing implications.

Documents

Birmingham Social Value Policy