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8/22/2019 Croydon Toolkit
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Inspiring and Creating Social Value in CroydonA Social Value Toolkit for Commissioners
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Inspiring and Creating Social Value in Croydon
A Social Value Toolkit or Commissioners
Contents
4. Case Studies Page 33
1.CCURVESkillsandEmploymentGroup2.GrampianHousingAssociationandSolsticeNurseries3.LiverpoolCityCouncilandBulkyBobs4.WakeeldMetropolitanBoroughCouncil5.CamdenCouncilandMentalHealthDayServices6.TheDevonSustainabilityMatrix7.CumbriaCountyCouncil8.RaplochURC9.GlasgowHousingAuthority10.IslingtonBSF
Page 33
Page 36
Page 38
Page 40Page 42
Page 45
Page 49
Page 52
Page 55
Page 58
1. Introduction Page 4
Whatisthistoolkitfor? Whatissocialvalueandsocialbenet? Whatdoesthislooklike? Whydoitandwhen? WhyisCroydonCouncildoingthis?
Page 5
Page 5
Page 5
Page 6
Page 6
2. Think and rethink what you are commissioning Page 11
Theapproachtocommissioning Thecategorycycle Workingtogetheroncategorymanagement
Page 11
Page 12
Page 13
3. The Procurement Steps to Achieving good quality social benefts Page 17
Route1:AwardCriteriaMethodology Route2:PerformanceObligationsMethodology Page 21Page 27
Contents | 3
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Inspiring and Creating Social Value in Croydon
A Social Value Toolkit or Commissioners
Introduction
What is this toolkit or?
ThistoolkitisentitledInspiringandCreatingSocialValueinCroydonandthisisexactlywhatweintendtodo.ItshouldbetakenastheclearestpossibleindicationthatCroydonCounciliscommittedtomaximisingthesocialvalue,orsocialbenetavailablefromitscommissioningandprocurementactivities.InourCommissioningStrategy2012-15wesetouttheresponsibilitywesharewithallpublicservicestoconstantlyndmoreeffectivewaysofmakingpublicmoneydeliverbetteroutcomesandtoimproveoutcomesinthemostefcient,effective,equitableandsustainableway.TherehasneverbeenamoreimportanttimethaninthecurrentchallengingeconomicandsocialclimatetomakesurewetietogethertheopportunitiestheCouncil,businessandthethirdsectorshaveforworkingtogethertothatend.Commissioningistheprocessfordecidinghowtousethetotalresourcesavailableinordertomeetthatchallenge.AsCroydonCouncilmovestowardsbecomingacommissioning-
ledauthority,commissioningistakingupitsplaceastheprimemeansofdeliveringontheaspirationsoftheCouncilandthecommunity.
TheStrongerCommunitiesStrategy(2011-15)setsouthowwearecontinuingtobuildstrongandactivecommunities.Itstatesthatthereareopportunitiestodoevenmoretoencourageanevenstrongercommunitytoourishandrecognisestheimpactthatcommissioningcanhaveinachievingthisaim.Commissioning,andparticularlytheprocurementprocess,hasnottraditionallybeenseenasaninherentlycreativecycleofactivity.Thistoolkitchallengesthatperception,offeringawayforwardforcommissioningand
procurementasatooltoinspirenewthinking,toharnessco-creationandtodeliveradditionalsocialvalueinallwedo.ThistoolkithasbeencreatedtosupportCroydonCouncilandpotentialprovidersofservices,inanysectorincludingsmalltomediumenterprises,socialenterprisesandvoluntarysectororganisations-toembedsocialvaluethroughprocurementprocesses.Thetoolkitprovidesguidanceparticularlytoservicecommissioners,categorymanagers,procurementofcersandthoseadvisingthemonlegalissuesonhowwecanderivesocialvaluefromprocurementactivity.Itsetsoutdifferentoptionsavailabletocommissionerssotheycanestablishwhatsrightforthem.
Thisdocumentwillprovideyouwithadviceontheprocessandbestpracticeprincipleswhentryingtoleveringreatersocialvalue.DuetothewiderangeofservicesprovidedbytheCouncilthereisnoonesizetsallmodeland,assuch,thisdocumentshouldbeconsideredalongsideadvicefromtheCommissioningandProcurement,Legal,CommunicationsandHRteamstoensurespecicserviceordepartmentalneedsarefullyconsidered.Thereisalsoastep-by-stepAwardCriteriamethodologytofollowthroughfrompre-procurementstagestoContractManagement.Theemphasisinthistoolkitisonthepractical.Itaimstoprovideanswerstothequestionsaboutwhereandwhenwecanlookforopportunities,atwhatpointsintheprocess,toquestionsaboutwhatwordingtoincludeandthelegalandfairnessquestionsthatcanariseandoftenworkagainstdoinganythingdifferent.Thewaywedothisisbyshowinghowthishasworkedinpracticethrough10casestudies.Manyoftheseinvolvethirdsectororganisations,includingsocialenterprisesandalloftheminvolvebuildingarelationshipbetweencommissionerandpotentialproviderandcreatingaconnectionwiththecustomer.
4 | Introduction
http://www.croydon.gov.uk/contents/departments/community/pdf/cscshttp://www.croydon.gov.uk/contents/departments/community/pdf/cscs8/22/2019 Croydon Toolkit
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Inspiring and Creating Social Value in Croydon
A Social Value Toolkit or Commissioners
What is social value?
Forthepurposeofthistoolkitwehaveused thedenitionofsocialvalueascreatedbyThe SustainableProcurementTaskForceandwidelyusedinScotland,WalesandEngland.Theydene itas,aprocesswherebyorganisationsmeettheirneedsforgoods,services,worksandutilities inawaythatachievesvalueformoneyona wholelifebasisintermsofgeneratingbenets tosocietyandtheeconomy,whilstminimisingdamagetotheenvironment.Thinkingsocialvalueshouldshiftthefocusfrom thebottom-linepriceorcostofaservicetowards theoverallvalueoftheoutcomesdelivered. Howaserviceisdeliveredistakenintoaccount alongwithwhatisdelivered.Thirdsector organisations,charitiesandsocialenterprises oftenhaveelementsofasocialvaluehard-wired inthem,and,asthecasestudiesshow,thishard-
wiringcangivethemacompetitiveadvantageoverprivatesectororganisationswhenitcomes toassessingtheoverallqualityofthebidwhenit takesaccountofsocialvalue.
What is social beneft?
Socialbenetistheoutcomeofthisprocess ofachievingsocialvalue.Itcanmeansomany differentthingstosomanydifferentpeople.As alocalauthorityCroydonmakesdecisionson socialbeneteverysingleday.Decisionsabout commissioningaparticularservice,orfunding aprojectinaparticularareafocusingona particularneedorrequirementintheCouncil areacanallcreateanddeliveranadditional socialbenet. Theseadditionalbenetscantakealmostany form,rangingfromtheverytangible,suchasjobsforthelong-termunemployed,orsub-contracting opportunitiesforsmallbusinesses,tosofter,butequallyimportant,benetssuchasengagement withcommunitiesorgroupsofindividualswho mightotherwisefeelentirelydisengaged.Doing soalsosupportstheCouncilspublicsectorequalityanddiversityduties.Deningsocial benetislessimportantthansecuringit.
What does it look like in practice?
Youcanusesocialbenetstobringlong-termgoodtotheBoroughby: Creatingskillsandtrainingopportunities(e.g.
apprenticeshipsoronthejobtraining); Creatingemploymentopportunitiesforthe
long-termunemployedorNEETs(thosenotineducation,employmentortraining);
Offeringworkplacementstoschoolchildren andyoungadults;
Providingcareeradviceandinformationfor youngpeopleonspeciccareers,suchasconstruction,architectureorengineering;
Offeringcurriculumsupporttoschools,with contractorssharingknowledgeandexpertise abouttheirdiscipline;
Providingadditionalopportunitiesfor individualsorgroupsfacinggreatersocial oreconomicbarriers.
CreatingsupplychainopportunitiesforSMEs
andsocialenterprises;
Creatingopportunitiestodevelopthird sector organisations.
Improvingmarketdiversity; Encouragingcommunityengagement;
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Supportinginitiativesliketargetinghardtoreachgroups;
Makingfacilities(suchasschoollibraries, leisurefacilitiesorcomputers)availabletotargetedgroupsthatotherwisewould struggletoaccesssuchfacilities;and
EncouragingethicalandfairtradepurchasingWhy do it, and when?
Becauseitsnothardandbecausetheoutcomes areworthit!Itseasytodismisssocialvalueprocurementasbeinginthetoodifcult category,butitcanmakeagreatdifferencetopeople,servicedeliveryandthebottomline. Requiringcontractorstodeliversocialbenets whiletheydeliverthemainelementoftheir contractmeansthatCroydonbenets.Wegetmore,bothdirectlyandindirectly,forourmoney.Beingsuccessfulatgettingthebestsocialvalue fromcommissioningandprocurementisawayofworkingthatneedstobeadoptedandlearned. Itispartoftheskill-setandknowledgesetthat weidentifyasbeingpartoftheCroydonexpert commissionercompetencies.TheCabinetOfcereferstheseasidealcommissioner competencies.
Asyouworkthroughthistoolkityoushould identifyoneconsistentmessageinordertosuccessfullysecuresocialvalueandbenet throughyourcommissioningandprocurementprocesses,youneedtothinkaboutitfromtheoutsetandembedaclearandunambiguous messageaboutyourintentiontodosoevery
timeyoucommunicatewiththemarket. Thereshouldbeabsolutelynodoubt,internally orexternally,thatoneofthecoreobjectives ofthecommissioningorprocurementexerciseistodeliverthegreatestsocialreturnfromtheinvestmentpossible.Why is Croydon Council doing this?
>This is important to usAswesayinourCommissioningStrategy,effectivecommissioningisimportantbecause around340m(or34%oftotalbudget)is spentexternallyeachyearcommissioningand procuringgoodsandservicesfromthirdparties. Around5%ofthatamountisspentwiththethird sector.Gettingcommissioningright,therefore,isimportantinordertoensurethatwecontinueto delivertherightservices,tothepeoplethatneed themmostanddeliverthegreatestimpact.
>We need to get the best value romour purchasing
Croydonhasalwayspunchedaboveitsweight. Asaleadingedgeorganisation,theCouncilhas alreadytakendifcultdecisionsbuthasprotected servicesthroughanambitiousprogrammeofunprecedentedchangetoensureCroydonsucceedsinaneweconomicclimate.Inthelast 12months,theCouncilhasmade30millionin savings-twothirdsofthishasbeenachievedthroughefciencies. Tomeetthechallengesahead,theCouncilmusttransformasanorganisationandpursuenew,andpotentiallyradical,solutionstomakepublic moneydeliverevenbetteroutcomes.Thistoolkitisakeypartofthatstrategy,andwillensure processesareformalisedwithintheCouncil sothatsociallyresponsibleandsocialvalue procurementtakesplace.
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TheCouncilaimstoensureaconsistentapproachtocommissioningdevelopsacrosstheBorough.Wewillworkwithpartners,includingprovidersinallsectorsandusersofservices,toensurethat expertcommissioningbehavioursareadopted widelyandmodelledinordertosecurebetter outcomesforthepeopleofCroydon >Social Value policy and legislationThelawhaschangedandthereisnowan additionaldutyonustodothis.Weareincentivisedtosecuregreatersocialvaluebyrecentlegislativeactivity.ThePublicServices(SocialValue)Act2012cameintoforceearlier thisyear.Publicauthoritiesarenowrequiredtoconsider,priortoundertakingtheprocurementprocess,howanyservicesprocured(whethercoveredbythePublicContractsRegulations2006orotherwise)mightimproveeconomic,social andenvironmentalwell-being.TheCouncilismakingsignicantcapital investmentininfrastructureandregeneration
in2012/13:73misestimatedtobespenton improvingassetssuchaseducationbuildings;27mwillbespentonimprovingplaces,including highwaysand8mistobespentontransforming ourICTandbuildings.
The Equality Act 2010bringsnewstatutory dutiestoCouncils.Intheexerciseofitsfunctions,theLocalAuthoritymusthave dueregardtotheneedto:advanceequalityofopportunitybetweenpeoplewhosharea protectedcharacteristicandthosewhodonot; eliminateunlawfuldiscrimination,harassment andvictimisationandotherconductprohibited bytheActandfostergoodrelationsbetween peoplewhoshareaprotectedcharacteristicand thosewhodonot.TheCouncilmust,therefore, notseektojustassesstheimplicationsofall commissioningdecisionsincommissioningregardingtherisktogroupsofpeoplebutmustlookforopportunities,suchassocialvalue,to advanceopportunitiestothosepeople. >We want to help Third Sector to thrive
and to do more
TheGovernmentsOpenPublicServicesWhitePaperproposesreformsthatwillallownon-
publicproviderstorunschoolsandotherpublic services.Thisincludesthethirdsectorandsmall tomedium-sizedenterprises(SMEs).Thethirdsectorcanplayapowerfulroleintransforming theservicelandscapebringinginnovation,value formoneyandinherentsocialbenets.
WellbeingRegeneration,Carmarthenshire,describedonpage14,isonesuchexample.What startedasaresponsetoalackofaffordable footcarehasburgeonedintoathrivingsocial enterprise,identifyingandrespondingtoarangeofcommunityhealthandsocialneeds.Inthe casestudies,Mid-DevonCommunityRecycling(MDCR)onpage45alsodemonstratesthe capacityofthethirdsectortoinnovate.MDCR approachedthecounciltostartakerbrecycling schemewithagroupofvolunteerstoshowthat itcouldbedone.AsMDCRgrewtheyalsodemonstratedthatitwaspossibletodelivertheserviceinaway thatcreatedopportunitiesforthelong-term unemployedandusedsustainabletransport. TheSocialValueActisnon-prescriptive,andtheextenttowhichisittakenintoaccountwill probablyvaryfromcounciltocouncil.Ithasbeen arguedthattheActwillberelativelyeasyto circumvent.CroydonCouncilwantstoembracesocialvalueand,therefore,willensuresocial valueisnotanotherlegislativehoopforthe Counciltojumpthrough.
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TheCouncilexplicitlyacknowledgesthevalue-
drivennatureofmostthirdsectororganisations, whichoftenrepresentsitsuniquesellingpoint. Thismeanstheyaremotivatedbythedesiretoachievesocialgoals(forexample,improvingpublicwelfare,theenvironmentoreconomic well-being)ratherthanthedesiretodistribute protandwillreinvestanysurplusesgeneratedinthepursuitoftheirgoals.Forthisreason thirdsectororganisationsaresometimescallednot-for-protorganisations,although inmanycasesthirdsectororganisationsneed tomakesurpluses(orprots)tobenancially sustainable.Someofthekeybenetsofthirdsector organisationsinclude: Thesocialcapitalgeneratedthroughtheuse
ofvolunteering Localrootsinthecommunityandthe
communityprideandpersonalself-worththat canbegenerated
Accesstowidersocialcapital(e.g.community socialnetworks)
Otherfundingleverage(e.g.matchedfunding fromcommunitypots)
Theopportunityforcommunity-leddesignand co-productionpractices
Thecontributiontothelocaleconomy thatputtingfundingintothevoluntaryand communitysectorcanbring
Helpingthethirdsectorthriveanddomore meansincludingthesectorinallmainstream commissioningandensuringthirdsectororganisationsallhaveameansofdemonstrating thesocialvalueoftheworkthoseorganisations do-howthesocialgoodstheyproduceoffer measurablesocialvalue,whichwillstrengthen theirbusinesscase.Section3ofthistoolkitmakesexplicitthe commitmentCroydonCouncilwillmaketointegratingsocialvaluewithinthescoring systemofawardevaluationandunderwhat circumstancesamoreopendialoguewillbe appropriate.>We have made a commitment to Corporate
Social Responsibility
Wehavealreadymadeacommitmentto
aCorporateSocialResponsibility(CSR) programme.CSRrepresentsapotentialtoolforustofacilitateinvestmentinlocalcommunities throughourmajorproviders.Thetoolkitwill enableustoincludeactionssuchasproviding workexperienceforlocalunemployedpeople
whendeliveringservicesorbuildingcapacityin localthirdsectororganisations. Thistoolkitissupportedbyspecicguidance publishedbyCroydonsWorkforceandCommunityRelationsdirectorate(CommissioningandProcurementPolicyforJobsandSkills) >We want to deliver sustainable outcomes
and meet community needs
Thetoolkitwillhelpusfurtheroursustainable procurementobjectives,whichmeanswecanmeettheneedsforgoods,services,worksand utilities in a
waythatachievesvalueformoneyona wholelifebasis.Wewanttomeetthecommunityneedsandsowewanttoincreasethechancesoflocalpeople benetingfromregenerationprogrammes.Thetoolkitwillhelpustoincreaseopportunitiesfor apprenticeshipsandlocallabour.Wewanttomeasuresocialimpacttheactualeffectofouractivitiesonthelocalcommunity andwell-beingofindividualsandfamilies. Thiswillbemeasured,forexample,intermsofchangesinlevelsofemployment,health, education,economicregenerationandsoon.
8 | Introduction
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Inspiring and Creating Social Value in Croydon
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Think again
GMProcurehasatargetof52weeksemploymentforanewtrainee
foreach1mincontractlabourcostonDecent Homesstandardframeworkcontracts,andisontargettoachievethisinthesecondyearofcontractdelivery equivalenttoabout10%
ofthetotallabourrequirementAtKingscrossCentral,a
twelve-yearmixedcommercialandresidentialdevelopment,thedeveloperhas
acceptedaPlanningAgreementrequirementthat7.5%ofthetotalconstructionlabourrequirement willbedeliveredbynewtraineesrecruited
fromanamedsourceProvidingopportunitiesfor targetgroups NEETS,BMEgroups,excludedgroups,hardtoreachgroups,formergangmembers,returntowork
candidates,exoffenders
Provideplacementsforuniversitystudents
ProvidingopportunitiesforNEETS youngpeopleNOTinemploymentTrainingEducation
InIslingtonBSFSchoolsthe DesignandBuildcontractoriscontractedtoengagenearly100apprenticesovertheve
yearprogramme
InShefeldtheHousing ALMOisontarget,over7years,todeliverandexpectedtotaloutputof
1500localjobs/trainingplaces
Provideguaranteedinterviewsfortargetgroups e.g.
longtermunemployed,schoolpupils,returningtoworkadults
Provideopportunitiesforsocialenterprisestobecome
partofthesupplychain Providemeasurable
improvementsofupscalinginworkforce
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A Social Value Toolkit or Commissioners
Think again
Intheearly1990satWalthamForestHousingAction
Trust20%oftheperson-weeksrequiredtodelivernewbuildsocialhousingwas beingdeliveredbynewtraineesrecruited
fromtheEstatewheretheworkswerecarriedout
BetweenMay2008andJune 2009theOlympicDeliveryAuthority
lledover500jobsbylinkinglocalbrokerage withODAContractors.Thebrokeragegiveslocalpeople48hourtoaccessjobsbefore
theyareadvertisedmorewidelyAstudyofveconstructionprojectsinnortheastEnglandthat
usedcontractualleverageidentiedan averageofonenewtraineeper750,000
onconstructionspend
Provideworkexperiencefortargetgroups Provideopportunitiestobecomepartofthesupplychain
Oneducationalprojects: provideinputtocurriculumdevelopment throughsupportlearningin
keytopicareas
InEastLondonRailProjectnearlyonethirdofthesuppliers tothemainJVcontractorare
local target areas
UptakeofapprenticeshipsAchievehighscores
onConsiderateContractorScheme
Runworkshopsfortargetgroupsonkeyareasofskill sustainability,designetc
10 | 2.Thinkandrethinkwhatyouarecommissioning
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2. Think and rethink what you are commissioning
The approach to commissioning
IntheCommissioningStrategywerefertothecategorywheel(overleaf)todescribethestagesinvolvedincommissioningandcategorymanagement.
Anexpertcommissioner: Reviewsthestrengthsandperformanceof
currentproviders;
TheWhitePaperonOpenPublicServices,launchedinJuly2011,supportsourthinklocalobjectives.Thepaperhasvemainobjectives:
1
Think and rethink what you are commissioning
2
Choose your procurement route
Understandscurrentneeds,prioritiesandmarkets;
Challengesexisting,andreviewsalternativeservicedeliverymodels;and
FocusesonoutcomesTodeliverrealsocialbenetanexpertcommissionermustthinkdifferently.Thatmeansinterrogatingwhatwehavealwaysdone,whatwearedoingandaskinghowcouldwedoitbetter?Itmaywellbethattheproviderwehaveusedinthepastcontinuestobebestplacedtodeliveragainintothefuturebut,together,weshouldchallengeallexistingassumptionsagainsttheCouncilsandthecommunitysaspirations.
Award Criteria Perormance Obligations
Create, manage, record outcomes
Further detail on page 20.
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Ser vice Needs & Bus iness
RequirementsReview
&
Se rv
i
i
Inspiring and Creating Social Value in Croydon
A Social Value Toolkit or Commissioners
The Category Cycle
ThecategorywheelensuresthatCroydonscommissioners,categorymanagersandprocurementteamworktogetherto deliverthebestserviceoutcomesforCroydonresidentswithintheresourcesavailable. Ateachpointofthecategorycyclethereisachallengeopportunitytoensuresocialvalueisconsideredandembedded.
Procurement Legislation
Areyoumakingthemostofthepowersyouhaveandofthescoperecentlegislationgivesyou?
LookatwhatGlasgowHAachieved(Page55).
Contract Review
Isthisachancetodothingsbetterbyextracting
socialvalueoropeningupaccesstocontractsforSEsandSMEs?WakeeldDistrictCouncil(Page40),LiverpoolCouncil(Page
38),CamdenCouncil(Page42),andDevonCC(Page45)andpartnersusedthe
contractreviewmomenttothinkagain.
Prepare
An
aly
se
IdentifyRev
iew
Manage
Ten
de
r
ategory
Cyc
le
Pro
curement L
egisla
tion
ContactReview
Ca
tegoryReview
MarketDevelopmentStrategicContactPerformance
ContentManagement
Transit
ion&C
ontrac
t
Implem
entatio
n
Tend
ering
Ten
derD
ocum
entP
reparatio
n
Performance(Sub
-Cate
gory)
Strate
gy&Plan
Opt i
onsAp
praisa
l
BusinessCase
iceD
esign/S
pecific
atio
n
Catego
ryStrategy
&Plan
ResourceAnalysis
RiskAnalysis
GapAnalysis
Market&Su
pplierAnalys
isSpe
ndAn
alysis
NeedsA
naly
sis&
Busine
ss Req
uiremen
ts
Service
Legisla
tion
,R
egula
tory
&Poli
cyEn
vironment
Se
vice
eeds & B
us ies
Reuire
ments
evie
w
MetDe elo
e t
Ca
tegoy
evie
Spend
Anay
sis
Market& u
pplierAnalys
isStategicC nt cterf
ce
Service
es
lati
o,egu
lato
r
&Poli
cyEviro
en
Ten
der
ocum
ent
repa
ratio
n
ServiieD
esign/S
pefic
atio
n
ResouceAna
ysis
G pAnaly
i kAna i
Fn
a
Opt
osA
rasa
&BusnessCas
Ten
eringasi
on&C
oact
Impl
naion
Prf
rm
(Sub
tgory)
rate
gy
Pl
n
netMana emen
CroydonCouncil
Needs analysis &
business requirements
Haveyoufullyscopedtheneeds?RaplochURC(Page52)understoodthatitneededtosecuresocialbenetstosupporttheareasregeneration.IslingtonBSF(Page58)sawtheregenerationopportunitiesinitsschoolbuildingprogramme.
Category Strategy Plan
Areyouseeingsocialbenetsaspartofabiggerpicture?Cumbria CC(Page49)sawthepotentialtoincludesocialbenetsacrossallcontracts.
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Working together on category
managementInordertogetthemostsocialvaluefromcommissioningwemust,therefore,thinkandrethink,identifyingthechallengeopportunitiesintheCategoryCyclewhichenableallinvolvedtoaskthefundamentalquestionsandbegintheprocessof,possibly,re-imaginingaservice.TheCategoryWheelsetsouttheCategoryCycleandtheinterfacebetweenthecategorymanagerandservicecommissionerateverypointinthecycle.ThechallengeopportunitycomesatkeypointsintheCategoryCycle.Theroleofbothistochallengeandsupporttheservice,andwhereverpossible,toincludeserviceusersinthatthinking.Thesynergybetweenthecategorymanagerandtheservicecommissionerastheyinterrogatethethinkingbehindidentiedneedsandtheservicesthatmaymeetthoseneedsmaybethesourceofexcitingnewthinkingandnewapproaches.AnaddedvalueofacategorymanagementapproachisthatothercategorymanagersormembersoftheProcurementTeammayencouragethecategorymanagertothinkbeyondtheirowncategoryandre-
envisionservicesacrossanumberofcategories.Anythingispossible.
EXAMPLE: Rethinking Meals on Wheels
Youarelookingatre-tenderingyourmealsonwheelsservice.Youcouldputitouttotenderwiththeusualrangeofcontractorsor,youcouldaskwhatarewereallytryingtoachieve?Why are we doing this?
...toprovidegoodqualityfoodforhouse-bound,frailorinrmpeople?Or...justtomakesurepeopleeat?Or...toreduceisolationandsocialcontact?Or...tomeetrequirements/legislation?Or...weknowthecurrentcontract runs out in ...Or...wedon'tknowanymore
What else can we achieve or
those stakeholders?
Benetentitlementchecks?Basiccommunityhealthcaree.g.podiatry,dressingchange,nutritionandhydrationcheckstoavoidunnecessaryhospitaladmissions?Localtransport?Socialnetworkse.g.fortnightlyormonthlygroupmeal?
What about other outcomes?
WorkplacementsincateringTraining/qualicationsincatering
Communityandsocialcare
placementsDevelopcateringservicesforothersectorse.g.schoolstocookmealsonwheels;catering contract for a social
enterprisecafe
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From Foot Care To Mobility
Where eet can take you ... Wellbeing Regeneration, Carmarthenshire.
WellbeingRegenerationisaSocialEnterprise,setupasaresultofafootcarepilotproject,commissionedbyapartnershipbetweentheNHSPodiatryService,thelocalauthority,the50+Partnership/StrategyforOlderPeopleandtheCarmarthenshireLocalHealthBoard(nowHywelDdaHealthBoard).Itexistedinitiallyasaresponsetothelackofaffordablefootcareforelderlypeople.Ithassincedevelopedawideportfoliobasedonitsunderstandingoftheimpactofreducedmobilityandlackofexerciseonindividualsphysical,socialandmentalwell-being.Ithasthereforedeveloped:Appropriateshoesellingservices,withassociatedrevenuegenerationandincludesttingandadviceTherapeuticservicesfrommassageandreexologytophysiotherapyandcognitivebehaviouraltherapyLeisureactivities,likeartsandcrafts,luncheongroupsandTaiChiAsign-postingservice,throughsatelliteclinics,whichhelppeopleaccessinformationonbenetsandentitlementsTherehasalsobeenpilotcommunitydeliveryofphlebotomyservices(bloodcollectionandanyalysis)developedinpartnershipwiththelocalhospitalasaresponsetolongqueuesattheHospital.Therearefutureplans,inpartnershipwithalocalhealthboard,toprovidelowlevelinterventionsforhearingaids,batteryexchange,replacingtubingandprovidinggeneraladviceandatriagefacility.
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Opportunities checklist
Ask Act
Stop Whyarewedoingthis? Pauseandframethequestionsyouknowyouneedtoask.Lookatthisprocessandworkoutwhatelementswillhelpyouto're-imagine'theserviceyouarelookingtoprocure.
Question Whyarewedoingthis?Whatarewetryingtoachieve?Whatoutcomesarewelookingfor?Whatcouldthisservicelooklikeinveyears,tenyears?Isthisthebestwaytoachieveit?Whataretheopportunitiestoaddvalue?Canwedeliverthisbetter?Canwedelivermorethanthis?How...?
Reallyinterrogatetheserviceyouaimtoprocure.Youwanttogetbacktothebasicsaboutwhyyouareprovidingtheservice,whatoutcomesyouwanttoachieve,howyoucanachievethemandwhatelseyoumightbeabletoachieveontheway.Theexamplesuggestssome waystointerrogateprovisionofthemealsonwheelsservice.
Research Whatotheroptionsexist?Whoelseisdoingthis?Aretheydoingitbetter?Aretheygettingbetteroutcomes,moreoutcomes, differentoutcomes?Canwedelivermoreforourmoney?
Talk to...ColleaguesinCroydonfromotherservicesectors;Yourlocalthirdsector,socialenterprisesandotherprovidersTalktoinnovators,entrepreneurs,challengers,andstakehoIders Research...Dotheresearch.Usetheinternetorcontactstondoutwhatotherpeoplearedoing.Whathasworked?Lookatcasestudies,bestpracticereports,publications,socialenterpriseguides,mainstreamandthirdsectorserviceproviderwebsites...TheexampleofSocialEnterpriseWellbeingRegenerationgivesyouaavourofhowservicescanbecompletelyre-thought,andunlikelyservicespairedtogether.Conductresearchwithserviceusers-whataretheirneedsreally?Think ...Whoelsecouldbringanewperspective?Whereelsecouldyoulook?
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Ask Act
Re-
Imagine
Whatcoulditlooklikeif...?Whatcoulditlooklikein5yearstime?Whatif...?
Get good brains together
Gathertogetherpeoplewhoarelike-mindedandthosewhoarentlike-mindedandstartstorming.Toolstohelpyoutalkandthinkmightbe:SharingndingsfromyourresearchVisitstoinnovativeserviceprovidersVisitingspeakerswithbestpracticetoshare;andBrainstormingworkshops-bringinafacilitatororasksomeonefromanotherpartoftheLAorotherorganisationstofacilitate.Afresheyeisusuallyinvaluable.
Re -
Specify
Weretheoutcomeswestartedwiththeoneswereallywanttoachieve?Whatdoestheservicereallylooklikenow?
Gobacktothecategorycycleanddeveloparevisedneedsanalysisandsetofbusinessrequirements.
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3. The procurement steps to achieving good quality social benefts
Choose your procurement route
Thekeytosuccessfullydeliveringadditionalsocialbenetthroughourcommissioningorprocurementprocessisensuringthatsocialbenetsareatthecoreoftheprocesses.Identifyingthemasoneofthekeydriversofanexercisemeansthatyouhavetheopportunitytosculpttheprocessyouareabouttocommenceinordertosuittheissues(socialandotherwise)whichyouwishtoaddressthroughtheinvestment.PotentialbiddersshouldbeinnodoubtastowhatCroydonhopestoachieve.Ourenthusiasmforaddressingsocialneedinthiswayshouldbeclearfromourbehaviourandourdocumentation.Good,accomplishedbidderswillpickuponthisandnomatterwhetheryouopttointroducesocialawardcriteriaorsimplyimposeperformanceobligations(seetheargumentsforbothonpage20),theywillunderstandtheimportanceofbeingmindfulofthisastheyseektoprogressinthecompetition.IfbiddersdontknowhowimportantobtainingsocialvalueistoCroydon,thereislittlechanceofthemassistingusinachievingsocialbenets.
Thethirdsector,includingcharitiesandsocialenterprisesare,ingeneral,deliveringsocial
benetasamatterofcourseandwillbewell-
placedtorespondtoyouraspirationsforsocialbenet.Althoughtheprivatesectordoesnot,onthewhole,havesocialvalueembeddedinitsdeliveryprocessesinthesamewayasthethirdsectorthereisaclearmovementamongstelementsoftheprivatesectortogetinvolvedinsuchinitiatives.Yes,theyknowitcanhelpthemwinappointments,butitisclearalsothattheyoftenseeitasanextensionoftheirowncorporatesocialresponsibilityinitiatives.ThereforeiftheCouncilcanestablishitselfattheforefrontofthismovementandputinplacemechanismstoharnesstheskillsandexpertiseoftherelevantsectorthenthereisaveryrealopportunitytodeliversomethingsignicantforCroydon.Gettingthemessagerightwillattractcredibleandcompetentbidders,withextensiveexperienceofdeliveringsocialbenetsthroughtheirpubliccontracts,enablingustomakeaveryrealdifference.
> Social Beneft as Award Criteria orPerormance Obligation
Oneofthekeydebateswhenconsidering integratingsocialbenetintoprocurementiswhetherornotitisappropriatetousesocial benetsasawardcriteriaandthereforeaspart ofthedecisionastowhotoawardacontractto. Atitssimplest,asocialissuemaybeanaward criteriaifitislinkedtothesubjectmatterofthe contract.Insuchcircumstancesyouwillbeable totakeintoconsiderationsocialbenetsatevery stageoftheprocurement,including,forexampleatselection(intermsofthebiddersexperience) andataward(intermsofthebiddersproposalstodeliversocialbenets).Ifthisisnotpossible,it isstill,however,possibletoimposeperformanceobligationsonasuccessfulcontractor.Incertain circumstances,itmayevenbepossibletocombinebothapproaches.Whatisimportantisthatinnearlyall circumstancesitwillbepossibletoseektosecure additionalsocialbenets.Determining that theidentifed social issue is linked to the subject
matter o the contract provides the greatest
opportunity to ensure social considerations
are at the core o the decisionmaking process.
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However,evenifthisisntthecaseyoustillhavetheopportunitytoimposesocialvaluewithin
acontractasapre-determinedperformance obligationyoujustcanttakethisintoaccount intheaward.Aswithmanyelementsofprocurementlaw thereislimitedguidanceastohowtoestablishwhethersomethingis,orisnot,linkedtothe subjectmatterofthecontract.Careshould, therefore,betakentoanalysewhatitisyouareseekingtocommission,whatsocialbenetsyou hopetosecureandwhetheritcanproperlybe saidthatthesocialissueislinkedtothecore requirementofthecontract.UltimatelyitisuptotheCounciltodetermine whattheprocurementrelatesto.Itmaybepossibletotiethesocialissuetothesubjectmatterofthecontractandevaluatethebidders approachtothisaspartoftheawarddecisionif: Youcandescribeindetailtheinvestmentyou
aremaking; Articulatehowandwhereitrelatesto,for
examplethewiderregenerationofthearea;and Addresshowitseekstoaddresssomeissue
ofcommunitydecitorwhyitisbeingplaced inordertofacilitateawidercommunity programme.
> Which approach to use and whenDeterminingthebestapproachmustbedoneonacasebycasebasis.Asingleapproachwould notworkforanycontractingauthority.Each contractmustbelookedatonitsownmerits andmanydifferentfactorswillberelevantwhendecidinghowtoproceed.Theseinclude: Thevalueofthecontractonlycontracts
overcertainvaluesaresubjecttothefull rigoursofprocurementlaw.[Attimeofpublicationthethresholdsforworks,supplies andservicesare4,348,350,173,934and 173,934respectively].Contractsfalling belowthethresholdsarenotsubjecttomanyofthemorerestrictiveobligations.Inthese casesyouhavesignicantlymoreexibilitytoadoptaprocesswhichsuitsyoursocialbenet aspirationsandwhichmightmakeiteasier togivecredittobidderswhoseektoaddresssocialissuesintheirresponses;
Thenatureofthecontract(i.e.whatsit for?)notallcontractslendthemselvesto asocialbenetapproach.Forexample,itis generallyacknowledgedthatthereislimited opportunitytoembedsocialbenetsintothe procurementofasimplesupplycontract;
Whetheritisaregulatedorunregulated contractnotallcontractstriggerthefull
applicationsofprocurementlaw.Forexample,contractsforPartBservices(evenifabove threshold)suchasforsocialservices,security orrestaurantservicesareallsubjecttoalightertouchregime.Similarly,contractsforinvestment,simplelandtransactionsandworksandservicesconcessionsareallless regulatedand,therefore,potentiallyprovideanadditionalopportunitytoadoptamore exibleandcommercialapproachtotheplacingofthesecontracts;and
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Whattypesoforganisationsmightbe interestedinthecontract?-Understanding
whomightbeattractedbytheopportunity andultimatelywhomightbeabletodeliverit willbeextremelyimportantinchoosingyour approach.Forexample,ifitisforanextremelycomplexorhighvalueworkscontract,then thefocusmightbeonrequiringminimumnumbersofnewemployees,apprenticeshipsetc.tobedeliveredthroughthecontractand creatingobligationsforatransparentprocess fordeliveringsub-contractoropportunities.
Ifthecontractisasmallerservicescontract considerationmightbegiventowhethersmallerbusinessesandcommunityorvoluntary organisationscoulddeliverit.Ifthisisthe case,careshouldbetakentoensurethatsuchbusinessesareawareoftheopportunity,understandwhatmightberequiredtotenderfor
itandtherearenounnecessarybarrierstotheir involvementintheprocess(furtherguidance
supportingthisapproachispublishedbyCroydonsWorkforceandCommunityRelationsdirectorateCommissioningandProcurementPolicyforJobsandSkills). Thefollowingsectionanddiagram(page20) describetwomainsuggestedprocurementroutes:Route1AwardCriteriaandRoute2PerformanceObligation,(i.e.contract performance)andthemeritsofeachintermsof tryingtogetthemostsocialvaluefrom a contract.I you look at the ow diagram (over page) frst, the
text explaining each stage ollows.
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The Procurement Routes to Achieving Social Value
Beforeyoucanchoosethecorrectroute,youneedtoconsiderwhatitisyouarepurchasing,howyouaregoingtodothisandwhatadditionalbenetyouhopetosecure. Route 1 - Award Criteria Route 2 - Performance Obligation
Thisapproachwillbeavailableifthesocialissuecanbesaidtoberelatedtothesubjectmatterofthecontract. Thisapproachisnearlyalwaysavailableandshouldbetheminimumexpected.
Embed in Business CaseEmbeddingintheBusinessCasemeansthatyouarethinkingaboutsocialissues
fromtheoutset,givingyouthebestchanceofmaximisingtileopportunity.
Reerence in OJEU (PartAservices)Thisisalegalrequirementthatalsoensuresbiddersareawarefromtheoutset
ofyourintentions.(SeesampleOJEUwordingin(page21).
Test previous experience o delivering social benefts in PQQAsthesocialissueisrelatedtotheawardcriteria,itispermissibletotestbidders
experienceofdeliveryonsocialissues.(Seesamplequestionsat(page22). Crat award criteria, and disclose in ITT/ITPD
EitherwithintheITTortheinvitationtoparticipateindialoguethesocialaward criteriaweightingsandmethodofscoringshouldbedisclosed.(See3approaches
toawardcriteriain(page37,47,56). Award Contract-Allsubmissionsareevaluatedandthemosteconomicallyadvantageoustenderidentied.(Seesamplescoringmatrixatpage37and47).Allcommitmentsmadebythepreferredbidderincludingthoserelatedtosocialissuesshouldbereectedinthenalcontract.
Monitor PerormanceHavingsecuredacommitmentfromthecontractortodeliversocialvalue,itis imperativethatthecouncilmanagethesuccessfuldeliveryofthese.(Seepage 24,53and56fordetailsonhowamaintainingprocessmightbeimplemented.)
Embed in Business CaseEmbeddingintheBusinessCasemeansthatyouarethinkingaboutsocialissues
fromtheoutset,givingyouthebestchanceofmaximisingtheopportunity.
Reerence in OJEU (PartAservices)Thisisalegalrequirementthatalsoensuresbiddersareawarefromtheoutset
ofyourintentions.(SeesampleOJEUwordingin(page21).
Explain Importance in PreQualifcation DocumentAgain,thisisaboutensuringthatbiddershavenodoubtastothe
importanceofseeingasocialreturntothecouncil.
Disclose Perormance Obligations in Tender DocumentsWhilstnottestedaspartoftheawarddecision,thecontractclausemustbeprovided
toallbiddersinorderthattheycanpricetodeliverthese.(Seepage27). Award Contract
Thecontractisawardedtothebiddersubmittingthedrafttender providingtheyhavecommittedtomeetthecontractualobligations (includingthesocialperformanceobligations).
Monitor PerormanceHavingsecuredacommitmentfromthecontractortodeliversocialbenet,itis imperativethatthecouncilmaintainthesuccessfuldeliveryofthese.(Seepage 24,53and56fordetailsonhowamaintainingprocessmightbeimplemented.)
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Route 1
Award Criteria Methodology
> Preprocurement market assessmentMarketassessmentisapowerfultoolfor exploringthecapabilityofthemarket-place todeliversocialbenets.Attheoutsetofthe procurementtherelevantmarketplaceshouldbethoroughlyresearchedandaproviderlist createdofallrealisticbidders,includinglargeestablishedproviders,SMEs,micro-enterprisesandthirdsectororganisations.Wheretimeandresourcesallow,thesesupplierscanbebroughttogetheratabiddersdayatwhichtheoutline project-plancanbediscussed.Initiativesaimedatwideningparticipationin biddersdaysandtheprocurementshouldbeconsideredwhereappropriate.Thesemayincludeencouragingmainsupplierstoadvertisesub-
contractingopportunitiesinthelocalpressand splittingcontractsintosmallerlots,whichare manageableformicro-enterprisesandSMEs. Specialistthirdsectororganisations,whowould ordinarilynotbeinvolvedinpublicprocurementshouldalsobecontactedandmadeawareofthe opportunities.
Thesemeasuresmustbecarefullymanagedtoavoiddirectlyorindirectlyfavouringany
contractorandshouldnotbeusedtoavoidthe applicationoftheRegulations.Furtherguidance onwideningparticipationinpublicprocurement isavailableontheCabinetOfcewebsite(http://www.cabinetofce.gov.uk/).
Feedbackfrommarketengagementcanbeusedtoproducetechnicalspecications,whichalignwiththecapabilitiesofthemarket-placeandincorporateachievablesocialbenets.Thesespecicationswillunderpintheevaluation
criteriausedintheprocurementtoselectthewinningbidder. > OJEUWhereprocurementfallswithinthescopeofthe Regulations,anoticemustbepublishedinthe OfcialJournaloftheEuropeanUnion(anOJEU Notice).Nomatterwhetheryouareusing awardcriteriaorsimplyperformanceobligations, youmustmakethisclearfromtheoutset.This
isnotonlyalegalrequirementbutinadditionitisyouropportunitytoputsuchmattersrmlyat theforefrontoftheprocurement. Iftheevaluationcriteriaincorporatessocial benetsthismustbesetoutintheOJEUNotice. Wordingusedforthispurposeshouldbeframed
asbroadlyaspossibletoensuremaximumexibilitythroughouttheprocess.Thefollowing
isexamplewording:It is intended that this Project acts as a catalyst
or [broadly defne the goal o the social benefts
e.g. regeneration within the London Borough o
Croydon]. Accordingly, the [contractor] will be
required to actively participate in achieving these
objectives and contract perormance conditions may
relate to social and environmental considerations.
The contractors technical capability to meet
these requirements may also be assessed at theprequalifcation stage and criteria which assess
the manner in which the contractor will meet
these requirements may also be included within
the contract award criteria. Further details will
be provided in the [PreQualifcation suite o
documents].
WhereacontractfallsoutsideoftheRegulations, anoticewillbepublishedateithernationalor EUleveldependingonthenatureandvalueof thecontract.Similarwordingshouldbeused toensurebiddersarefullyinformedoftheprocurementssocialobjectives.
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> Prequalifcation QuestionnaireItiseasytodismissthisasaproceduralexercisebuttheelementsinthePQQcanbekeytodeninghowimportantsocialbenetsare toCroydon.Intheshorttermitfocusesthe attentionofthebiddersandtheimmediate market,inthelongtermitheightensawarenessandbuildsthecontractorskillbase. Therulesonpre-qualicationquestionnaires (PQQs)permitaninitialassessmentofsocial benetswheretheyareconnectedtothegroundsforexclusionspeciedintheRegulations: mandatoryanddiscretionarygroundsfor rejection,nancialstandingandtechnical capacitytoperformthecontract.Inpractice, questionsonsocialbenetwillfallintothelatter category.APQQmustincludecorequestions,forwhichtheCabinetOfcehaspublishedstandardform questions,whichLocalGovernmentbodiesarerecommended,butnotobliged,touse.(http://www.cabinetofce.gov.uk/sites/
deault/fles/resources/AnnexACorePQQ-
questions.pd).
Projectspecicquestionsmayalsobeused,such asthefollowing:
Environmental Management Policy
1. Do you have a documented policy and
organisation or the management o construction
related environmental issues?
2. Do you have documented arrangements or
ensuring that your environmental management
procedures are eective in reducing or preventing
signifcant impacts on the environment?
3. Do you have arrangements or providing
employees who will engage in construction, with
training and inormation on constructionrelatedenvironmental issues?
4. Do you check, review and where necessary
improve your environmental management
perormance? Do you have arrangements or
ensuring that any suppliers you engage apply
environmental protection measures that are
appropriate to the work or which they are being
engaged?
Targeted Recruitment and TrainingIt will be a requirement when carrying out this
contract that the contractor provides support or
targeted recruitment and training. Please provide
[insert number o] examples o your approach to
and previous experience o supporting targeted
recruitment and training initiatives when carrying
out contracts similar to this contract.
Community Engagement
As this project is to be delivered in an area ohigh residential density, it is important that the
contractor engages with the local community as it
seeks to successully deliver the contract. Please
provide [insert number o] examples o previous
projects where you have engaged with a local
community during the successul delivery o a
complex project similar to the Project in a similarly
built up area.
Detailed consideration should be given to the
weighting given to social beneft considerations and
how they should be assessed during this stage o
the procurement.
Inverybroadterms,therearetwowaystotestwhatabiddermightofferintermsofits proposalsforsocialbenet.Theseare: 1. Specifed Requirements: Wherethebidder
isrequiredtosubmitguresandoutcomesinadenedmannerandthisiscapturedina contractschedule.
2. Open Questions: Wherethebidderispresentedwithchallengesthatneedresolving viaopenquestionsforthebiddertodevelop innovativesolutions.
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> Specifed requirementsApro-formamethodstatementasksbidderstostatehowtheywillprovidethesocialbenets setoutintheawardcriteria.Thisisthemost straightforwardoptionasitforcesbidderstoaddresseachoftherequirementsandcanbeevaluatedusingamorestructuredscoringframework.Thebenetofspeciedrequirementsisthatyou ensureaconsistencyofresponseinthetender return.Thismakesevaluationeasierandensuresthatbiddersdelivertoaminimumrequirement.Itensuresthattheoutcomescanbetransferred easilytothecontract.Anapproachofthistype hasbeensuccessfullyutilisedacrosstheUKby bodiessuchasRaplochURC(seecasestudyon page52),Crossrail(onitsmulti-billionpound investmentinnewrailinfrastructurepage26), andtheOlympicDeliveryAuthority(page9)on itsinvestmentforthe2012Games.ExamplemethodstatementsfromCrossrailandRaplochURCaresetoutoverthepage.Thepotentialdownsideofspeciedrequirementsis thattheydonotnecessarilychallengebiddersto exceedtargetsanddeliveroverandabovetherequirement.
> Open QuestionsOpenquestionsprovidebidderswithanoutlineofwhattheauthorityisseekingtosecureand challengesbidderstomeetandexceedthis.Thebenetofthisapproachisthatitpresents thegreatestopportunityforabiddertousetheir innovationandexpertisetooffersomething different,toseektodevelopsolutionswhichare notformulaicbutratherwhichlookatproblems fromdifferentangles.Suchanapproachoften deliversagreaterreturngenerallybutalsoawiderandmorediverserangeofbenets,manyofwhichcouldneverhavebeenanticipatedatthe outset.IslingtonBSF(seecasestudypage58)is oneexamplewheretheLocalAuthoritysecuredarangeofbenetsitmaynototherwisehave achievedusinganopenquestionapproach. Anopenquestionmaybedraftedasfollows: Bidders are required to demonstrate how they
would construct and operate their supply chain(s)
in order to respond to matters in the area o thespecifc Scheme, evidenced by specifc examples.
This should include as a minimum: Employment
opportunities; Education / training / apprenticeship
opportunities within the supply chain.
The Contractor is required to state in Appendix
# the number o small businesses (SMEs) andSocial Enterprises (SEs) that he will employ on
the Project. The Contractor will be required to
make opportunities available and to support the
development o an eective supply chain.
The Contractor is required to develop and deliver
a community benefts plan identiying the benefts
which it will contract to deliver during the course o
the contract. The plan should describe in detail each
beneft, how and when it is to be delivered.
Whilsttherstapproach,speciedrequirements,limitstheopportunityforinnovationtosome extent,itisclearthatevaluatingresponsesfrom bidderstospeciedrequirementsislikelytobeeasier,astheanalysisrequiredtodothisislikelytobefarlesssubjective.
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> Contract ManagementTheimplementationofsocialbenetscanonlybeassuccessfulasthemonitoringandreviewmechanismscontainedinthenalcontract.Effectivecontractmanagementisabsolutelyvital.Toensurethatsocialvalueobjectivesaredelivered,itmustbepossibletomeasureandquantifytheoutcometheypursue.Wheresocial benetshavebeenusedasawardcriteria,a carefullydraftedmethodstatementcanbe adaptedforuseinacontract.Whereopen questionsareadoptedorproposalsaremodied duringcompetitivedialoguethoughtmustalways begiventohowproposalscanbemeasuredandmanagedduringthecontract. Robustmonitoringagainstdenedkeyperformanceindicators(KPIs)mustalso beincluded.KPIsshouldbeclearlydrafted, achievableandreecttheimportanceofthe socialbenettotheprojectasawhole.Thedata collectionexercisesshouldnotbeunnecessarily onerousandtheassociatedcostsshouldbe proportionatetothevalueofthecontract.You willneedtoconductfrequentreviewsandinclude appropriateincentivesanddisincentivesto encouragecompliance.
Effectiveandfaircontractmanagement mechanismscanalsofosterapartnership
culturewithasupplier,bringingadditionalsoftbenetstoprojectdelivery.Example o matrix rom Raploch URC
> Social Beneft Method Statement1. Training
1.1Describethestepsthatwillbetakento ensurethatemployedstatusnewentrant traineeswillcompriseeitheraminimum of10%oftheperson-weeksrequiredto delivertheworksoraminimumof157(no.) whicheveristhegreater,andthatwhereverpossiblesuchnewentranttraineeswillbe recruitedfromEmploymentConnections,EmployAbilityStirlingoranotheragency namedbyLandholdings.
1.2 PleasecompletetheTablesbelowinrelationtothewholedevelopmentandthenthenext two12monthperiods.
Total personweeks to be delivered by new entrant
apprenticeships, employed operatives and non-
employed trainees (excluding work placements)
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Occupation LabourRequirement
Personweeks delivered by New Entrant Trainees
Total or
ContractApprentices
Employed
operatives
Nonemployed
TraineesTotal No.
% o
total
P/wks No P/wks No P/wks No P/wks No P/wks No
Trades
Apprenticeship
or Young
People and
Adults
Employed
Operatives
semiskilled
and unskilled
employees
Total in
employment
Nonemployed
trainees all
levels and
occupations
Total in
Employment
and Training
Notes:
P/wksAperson-weekistheequivalentofoneperson
workingfor5dayseitheronsite,orthroughamixof on-siteworkandoff-sitetraining.Thetotalperson-weeks utilisedonthecontracttoincludetimeprovidedby managementandprofessionalstaff,tradesandoperative staff,andancillarystaff. Noenterherethenumberofindividualsthatyou anticipateusingforeachoccupationandcategory. A new entrant traineeisapersonthatisleaving aneducationalestablishment(e.g.school,collegeor university)orleavingatrainingprovider,oranon-
employedpersonthatisseekingemploymentthat includeson-sitetrainingandassessmentoroffsite training,oramixofthese. An Apprenticeisapersonregisteredasanapprenticewithanindustryrecognisedbody.Eachapprenticecanbe countedasanewentranttraineeforupto104weeks.
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Example o matrix rom Crossrail
SILNT Output
Breakdown
SLNT Category
Yr 1 Yr 2 Yr X Yr X
Equivalent
value per 3m tendered
total
Total
Crossrail Priorities (at least SO%) an apprentice or a sustainable job start (min 6 months) or; an individual
rom the Local Community and/or an individual who has been longterm workless I unemployed/ out o
education or training or 6 months plus.
Apprentice (new)2 1 1FTE P/wks
Job Start1FTE
Other outputs (50% or less)
Graduate Training
Scheme 200 200 1FTE
Placement (days)200 days 2
Taster (days)
100 days
Workorce Slkillls (days)200 100 days 2
Work Experience (days)100 100 100 days 2
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Route 2
Perormance obligationsmethodology
> Preprocurement market contactWheresocialbenetsarenotcorerequirementstheemphasisofmarketcontactshouldbeonthe industryscontractualstructuresandsuppliersattitudestovariousformsofmonitoringand KPIs.Particularattentionshouldbepaidto suppliersopinionsonthefeasibilityofthe variousoptionsandtheirlikelihoodofachieving thestatedbenet. Preparationformarketengagementisimportant, includingaccuratelydeningthesocialbenets andconsideringhowthesemightbeincorporated intocontractsandmanagedgoingforward. Carefulpreparationwillensurebothsidescancontributeeffectivelytotheengagementand begintoconsiderappropriateapproaches.> OJEUAsnotedearlier,oneofthekeystosuccessisensuringthatbiddersareinnodoubtasto theimportanceCroydonCouncilplaceson securingsocialvaluefromitsinvestment.Your
enthusiasmforthismustservetoinspirethemthroughbothyourbehaviourandconductwhen
engagingwiththemandasaclearandconsistent themeineachandeveryprocurementdocument. Itwillstillbenecessarytoinformbiddersof theroleofsocialbenetsfromtheoutsetto ensuretheyarecapableofmakinganinformed judgmentonwhethertotakepartintheprocess.Thefollowingwordingmaybeused.It is intended that this Project acts [as a catalyst
or the social regeneration o the local area].
Accordingly, the [contractor] will be required toparticipate actively in achieving these objectives.
Accordingly, contract perormance conditions may
relate to social and environmental considerations.
Further details will be provided in the Contract
Documents.
> Award / contract managementPerformanceobligationsarenotawardcriteria socannotinuencewhoischosenasthe successfulbidder.Whilstbiddersmustacceptthecontractualconditionsinordertosubmita validbid,theyareonlyrequiredtoimplementthetermswhenperformingthecontract,notbefore orduringthetenderexercise.
Thesameprinciplesofcontractmanagement outlinedabovemustofcoursebeappliedforall
socialbenetelementsofthecontracttoensure effectivedelivery.Contractualconditionsofferawiderarrayof socialbenetsthanisoftenpossiblebyusing theevaluationcriteriamethodology.ThefollowingbenetswereexpresslyrecognisedintheEuropeanCommissionsInterpretativeCommunicationof2001: Theobligationtorecruitunemployedpersons,
ortosetuptrainingprogrammesfortheexecutionofthecontract;
Theobligationtoimplement,duringthe executionofthecontract,measuresthat aredesignedtopromoteequalitybetweenmenandwomenorethnicorracialdiversity, orprovideequalaccesstopersonswith disabilities;
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Theobligationtocomply,duringtheexecutionofthecontract,withfundamental
humanrights(suchastheprohibitionofforcedandchildlabour)guaranteedbytheInternationalLabourOrganisation(ILO)coreconventions,insofarastheseprovisionshavenotalreadybeenimplementedinnationallaw;and
Theobligationtorecruit,fortheexecutionofthecontract,anumberofpersonswithdisabilitiesoverandabovewhatislaiddownbythenationallegislationintheMember
StatewherethecontractisexecutedorintheMemberStateofthesuccessfultenderer.
The Contractor is required to identiy and
participate in activities which engage the local
community and help raise awareness o the
project, the construction industry and sustainable
development.
In meeting these requirements, the Contractor will
be required to provide a named contact or each
site and to actively engage with the Council and to
work in partnership with appropriate agencies and
service delivery agents.
On the award o the Contract, a detailed process
map will be agreed taking account o the deliveryinrastructure in the area.
In submitting this tender, the Contractor agrees to
meet the Community Beneft requirements and to
proactively engage with the Council.
ProvidedtheintentiontousesocialbenetsissetoutintheOJEU,theonlyotherexpressconstraintsarethattheconditionsmustberelatedtotheperformanceofthecontractandcomplywithEUlaw.Whenyougettothestageofmanagingthecontractpleasegotoguidanceonpage24.
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Inspire
Invitebidderstosetouthowtheywillhelpyouaddresslocal
challengesandneeds
Require
Biddersmustcompleteamatrixortablespecifyingtheexactnumberandnatureofsocialbenetstheywilldeliverasessedagainstpre-agreedmeasuressuchasnumberofpersonweeksoftraining. TheRaplochandCrossrailmatricesaregoodexamples.
Instruct
Biddersmustsetouttheiroffer againstaseriesofclosedquestions. Howmanylong-termunemployedwillbeemployedontheproject?
Howmanysocialenterpriseswillbeincludedinyoursupplychain?
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> The Power o Competitive Dialogue inmaximising social value
Thiscangetabitcomplicatedbutitisworth givingseriousconsiderationtocompetitivedialogue(orCD).ThemainadvantageofCDto Croydonistheabilitytoengagedirectlywithbiddersduringdialogue.CompetitiveDialogueisthemostsophisticatedandexibleofthefourproceduresavailableto contractingauthoritiesundertheProcurement Regulations.Incontrasttoamorerestrictedprocedure,theCompetitiveDialogueprocedureoffersmoreexibilityduringthedialogue stagetodiscussthefullmentofsocialbenet objectivesasatwo-waydialoguematching theauthoritysaspirationswitheachbidderscapabilities.IfyoucanjustifyusingCDthenwecan useitsdialoguesessionstoraisespecic issueswithbidders,ensuringthattheyareaddressedeitherinthebiddersresponsetothetechnicalrequirementsorinthecontractual documentationasappropriate.
However,CDmayonlybeusedforwhataretermedparticularlycomplexcontracts.This termisintendedtodescribeprojectswheretheauthorityisunabletodenethetechnical meansofsatisfyingitsneedsortospecifythe legal/nancialstructureoftheprojectfrom theoutset.Inpractice,thisislikelytoarise whereitisnotpossibletoissueacomprehensivesetofrequirementsattheoutset.Througha CDprocedure,anauthoritycanengagewith thebidders,usingtheirspecialistandmoretechnicalknow-howandexpertisetodeneits requirementmorepreciselyandbeforeinvitingnalbids.Anauthoritymustcarryoutasuitability exercisebeforeusingCDtotestitsappropriateness.Oflate,CentralGovernmenthassoughttodissuadeprocurersfromusingCDbecauseoftheassumedadditionalcostsinvolvedandthetimeittakestouseCD.ItistruetosaythatitisnotappropriatetouseCDwhenthecomplexityof theprojectdoesnotjustifyit.However,itisalso thecasethatoftenitistheonlyappropriateway toputinplaceacontractwhichisnotsimple andonwhichthelegal,nancialortechnical requirementscannotbespeciedinadvance.
ApproachesusedtodeliverunderCDhavebecomesignicantlymoreefcientandeffective inrecentyears.Inlightofthis,andgiventhatCDprovidesthebestplatformtoencouragebidderstodelivermore,unilaterallyrulingoutuseofCD inallbutexceptionalcaseswouldundoubtedly representamissedopportunity.
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Outline o the procedure
Inthemoreregulatedprocurements,aCDstartswithacallforcompetitionbywayofa noticeintheOfcialJournaloftheEuropean Union.Bidderswhoexpressaninterestarethenaskedtocompleteapre-qualication questionnaireandselectedbiddersareinvitedtoparticipateindialogueandsubmitoutline solutions.
Afterexaminingtheoutlinesolutions,theauthoritywillconductaseriesofmeetings (knownasdialoguesessions)witheach bidderindividually,wheretheirsolutionswillbediscussed.Theauthoritymayholdas manyphasesofdialogueasitchoosesand dependingonthecompetitionstructure,mayconductinterimevaluationsbetweenthe phasesandexcludeweakbidders.WehaventgoneintodetailinthisToolkitbutclearlywherecommissioningorprocuring aservicewhichconstitutesaPartBService (forexample,healthandsocialservices, restaurantservicesorrecreationalorcultural services)whichisnotthereforeregulatedas strictlyasaPartAservice(i.e.maintenance andrepair,architecture,accountingetc.),thepotentialisgreatertoadoptamoreexibleprocedurewhichhas,atitscore,dialogueand directengagementwithbidders.
Benefts o using Competitive Dialogue in achieving Social Benefts
ThemainadvantageofCDtoCroydonistheabilitytoengagedirectlywithbiddersduringdialogue.IfCroydoncanjustifyusingCDthen itcanuseitsdialoguesessionstoraisespecic issuewithbidders,ensuringthattheyareaddressedeitherinthebiddersresponsetothetechnicalrequirementsorinthecontractual documentationasappropriate.Byhighlighting anddiscussingclearobjectiveswithbidders,Croydoncouldensurethatallbiddersareclear onallofthedriversfortheprojectincluding anyeffortstosecuresocialbenets,thereby ensuringthatbiddersareinastrongpositionto
fullthemandpossiblyexceedthem.AsecondadvantageofCDisthecompetitivetensioncreatedbetweenbiddersduringdialogue.Apro-activebidderwillnotonlyseek
tofullthesocialbenetsidentiedbythe authoritybutwiIIoftenalsoattempttobuildon thethemespresentedtocreateacompetitivepackage,whichmayexceedtheauthoritysexpectations.Asauthoritiesdemandmorevalueformoney fromtheirsuppliers,theabilitytodemonstrateadditionalsocialbenetsisakeyopportunity forsupplierstodifferentiatethemselvesfrom theircompetition.Afurtheradvantageisthat CDisevaluatedusingthemosteconomically advantageoustendercriteria,whichseeks
toidentifythebest-valuetender,takingintoaccountvariousfactors,expresslyincludingsocialcharacteristics,placingsocialbenets attheheartofbidderssubmissionsandthe evaluationprocess.
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> ConclusionsInsummary,whenyouareconsideringwhich procurementroutetotaketogetmostsocialvalueitwillhelpyouifyourstconsiderwhat we
want to achieveandhow we are going to go
about it,takingintoaccount: Thevalueofthecontract; Thenatureofthecontract(i.e.whatsitfor?); Whetheritisaregulatedorunregulated
contract;and Whattypesoforganisationsmightbe
interestedinit?Aswesaidatthestartitcanbetemptingto dismissprocuringforsocialbenetastootricky! Thistoolkit,however,demonstratesthatsecuringsocialvalueinvolvessimplestepsthatintegratesocialbenetsintoourprocurementpractice.It isstraightforward,achievableandworthwhile. TakingthosestepswillbringsignicantbenettoCroydonCouncilandthepeopleitservesbydeliveringasocialreturn,whereverpossible,on everypounditspends.
Whatfollowsnextisanumberofcasestudies fromlocalauthoritiesorpublicbodieswhohave securedsocialbenetthroughprocurement. Thereare10casestudies.ThistoolkitisentitledInspiringandcreating SocialValueinCroydon.Theintentionisthat thesecasestudiesnotonlyinspireusallinto actionbutthatweusetheminpracticalways: tohelpusrecognisewhereopportunitiesexistin thecategorycycle;toofferreassurancethatit canbedoneandtoofferactualtenderdocument extracts-clauses,disclaimers,evaluationtablesandsoonforre-use.Wehopethisgetsyouonyourwaytogettingasmuchsocialvalueaswecanoutof commissioningandprocurementforthepeople ofCroydon.
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4. Case Studies
1. CASE STUDY: CCURV Skills and Employment Group
This case study demonstrates Croydons commitment to sustaining employment and building skills in the borough.
Background
CCURVisaLocalAssetBackedVehicleintowhichCroydonCouncilprovideslandandassetsandJohnLaingprovidesequityworkingcapitalanddevelopmentmanagementservicestoundertakedevelopmentprojects.CCURViscommittedtodeliveringregenerationholisticallywithinCroydon.AmbitiousyetrobuststrategiestodeliversocialandeconomicbenetslocallyarepartofCCURVsstrategyforeachdevelopmentandarereectedaskeydeliverablesinCCURVs contractswithitsconstructionsupplychains.TheCroydonCouncilUrbanRegenerationVehicle(CCURV)Skills&EmploymentGroupbringstogetherthepublicprivateandthirdsectorstoshapeandreviewthesocialandeconomicbenetsdeliveredthroughCCURV;aninnovative25yearpartnershipbetweenCroydonCouncilandJohnLaing,aprivateinvestoranddeveloper.
> How social value was securedThe tender process
CCURVsobjectivetoencourageemploymentgenerationandgrowthofabuoyanteconomyfor CroydonisoneofanumberofpublishedCCURVobjectivesthatarecontainedintheoverarchingCCURVlegalframeworkbetweentheCounciland JohnLaing.Thisobligationiscarriedforwardin performanceindicatorsagreedandcommittedtobyCCURVcontractors.Opendialoguewithcontractorsisundertaken duringtheselectionprocesspriortoappointment concerningcorporatesocialresponsibilities commitments:localemployment,educationand training,careerandprofessionaldevelopment,localsupplychainandcommunitydevelopment. SpeciccommitmentsagreedwithcontractorsareratiedbytheCCURVPartnershipBoardandenshrinedwithincontracts.Typicaltargetsmightinclude:
Adenedpercentageoftheworkforcetobe ontraineeanddevelopmentprogrammes
Adenedtargetpercentageoftheworkforcetoberecruitedlocally(i.e.fromwithinthe CroydonTraveltoWorkarea)andallnewemploymentopportunitiesadvertisedin Croydonrst
Creatinglocalsupplychainopportunities, seekingtoplaceadenednumberofpackages withlocalbusinessesanddenednumberof furtherTier3packages
Creatingopportunitiesforthirdsector organisationstoenterthesupplychainor toprovideaddedvaluebylinkingservicestolocalneeds.
Creatingandsupportingworkplacements, internshipsandothervocationalopportunities forCroydonsyoungpeople
Engagingdirectlywiththecurriculumthrough supportingthedevelopmentofvocational diplomasanddevelopingconstruction-linked lessonplans
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Workwithatleast1voluntaryandcommunitysectororganisationonanongoingbasisfor thelifeoftheproject
AppointadedicatedChampiontoundertake liaisonwithlocalcommunities,groupsandorganisations
> What social value has been achievedTheSkills&EmploymentCoordinationGroup wasestablishedbecausebothCroydonCouncilandJohnLaingrecognisedthatmorecouldbe achievedbysupportingpositivecollaboration thanbyleavingthesupplychaintowork autonomouslyandperhapsinisolationfromthe organisationsandinitiativesalreadysupporting communitiesandbusinessesintheborough.TheSkills&EmploymentCoordination Groupmeetsmonthlyandincludes:Croydon College;JobcentrePlus;REDs10;National ApprenticeshipsService;BusinesstoBusiness; CroydonVoluntaryAction,ChangingPaths;SirRobertMcAlpine;WatesConstruction;CSkills;
JohnLaingandCroydonCouncil.TheSkills&EmploymentCoordinationGroup seekstomaximiselocalbenetsbydeployingthecomplementary,butdifferentskillsofeach ofitsmembers,toseizenewopportunitiesand
collectivelytacklechallengesthatcouldhinder delivery.Successesto-dateinclude: Over6millionCCURVsupplychaincontracts
havebeenawardedtoCroydonsbusinesses.LocalSMEengagementhasbeenfacilitated throughworkingwithBusinesstoBusiness, whichprovidesERDF-fundedservicestoprovidetailoredengagementtoupskilllocal SMEstoidentifyandeffectivelycompetefor oursupplychaincontracts;
CCURVanditsconstructionpartnersalso supportedBusinesstoBusinesstobidfor,andsecure,furtherfundingtoextendits businesssupportprogrammefortwomoreyears.Ourabilitytostimulatedemandisgrowingencouragingoursupplychaintobuyfromlocalrms.Ithelpstoeffectivelylink thetraininglocalbusinessesreceivetorealopportunities;
Averagelocalemploymentof18.2%onthe BernardWetherillHousescheme(SirRobert McAlpine)and23%ontheWaddonmixeduse
scheme(WatesConstruction);
WithadvicefromtheNationalApprenticeship Services,anApprenticeshipTrainingAgency(ATA)hasbeenestablishedbetweenCCURVandREDs10,anawardwinningsocial
enterprise.TheATAaugmentsthenumberofapprenticeshipsgeneratedbyCCURVsconstructionsupplychainsbybrokeringpartplacementsacrossmultipleCCURVprojects;To-datethishascreated12placements,whichwouldhavenotbeenpossibleifwe hadonlyadoptedatraditionalapproachto apprenticeships;
FundedbytheWatesGivingProgrammeandtheJohnLaingCharitableTrust,abespokeprogrammehasbeenprovidedbytheconstructionsupplychainandChanging Pathstoprovidetrainingandguaranteedsustainableemploymenttothoseleavingprison.ThiswasdesignedaspartofCroydonsresponsetosupportinglocalcommunitiesaftertheBoroughwasaffectedbycivicunrest inthesummerof2011.
Akeysuccessfactorwithinthisinitiativehasbeenthecollaborativeapproachbetween ChangingPaths,JobCentrePlus,CroydonCouncilandourconstructionpartners.The partnershipshasbeeninstrumentalintackling potentialbarriersthatmayhavepreventedbeneciariestakingpart,suchasthepossible lossofbenets.To-date5ex-offendershavesecuredsustainable,fulltimeemploymentthroughthisinitiative;
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8localpeoplewhowerelong-term unemployedundertookanintensivetwoweek workexperienceprogrammeorganisedbySirRobertMcAlpinetogetherwithJobcentre Plus,whichhasledtosustainable,fulltime employmentwithrmsintheconstruction supplychain;
Awiderangeoflecturesandplacements havebeenofferedforstudentsatCroydonscollegesandschoolsandWatesConstruction isprovidingtraininginthelatestindustry technologiesforteachingstaffatCroydon CollegesNewAddingtonConstructionTrainingcentre;
Recognisingthateffortstoplacelocal peopleinconstruction-linkedemployment opportunitiesaresometimeshamperedbyalackofunderstandingaboutspecic tradeandskillsrequirements,JobcentrePlusworkedwithREDs10,SirRobertMcAlpineand WatesConstructiontodeveloptraininganddedicatedpointsofcontact.Thisensureda bettermatchbetweenthecandidatesunder considerationandthevacanciesthat becomeavailable;
ATrainingandVisitorCentrehasbeenprovidedbyCCURVandSirRobertMcAlpine.IfoverlooksakeyCCURVdevelopmentsiteandisheavilyusedbycommunitygroups,schoolsandCroydonCollegeforpractical learningopportunities.
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2. CASE STUDY: Grampian Housing Association and Solstice Nurseries
This case study demonstrates how Grampian Housing Association included social benefts as core requirements in its open
spaces maintenance contract ater recognising the added value that Solstice Nurseries brought to the original contract through
its workorce o people with mental health difculties.
BackgroundProcurement
Legislation
SolsticeNurseriesisasocialrmthatprovidestrainingandemploymentaroundhorticultureforpeoplesufferingwithmentalhealthdifculties.GrampianHousingAssociation(GrampianHA)playedacrucialroleinsupportingSolsticeNurseriesinitsstart-
upphaseandcontractedittoprovideopenspacemaintenanceworkonanumberofitsestates.Italsoprovidedaccommodationfortheorganisationwhileitsecuredfundingandestablishedanewsiteforthenursery.Whentheopenspacecontracts,atavalueof100,000,cameupforretenderingGrampianHAneededtotestSolsticeNurseriesservicesagainstthewidermarket.However,italsowantedtorecognisethetrainingandemploymentopportunitiesthatsocialenterpriseslikeSolsticeNurseriesprovide.
Veriedlegalityofincludingsocialvalue
clausesinthecontractContract Review
Recognisedthesocialvalueachieved
alongsidegroundsmaintenance
outcomesandwantedto continue to
achievethem
Tender Document
Preparation
Enshrinedsocialvalueoutcomesintender
documentation
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Needs analysis &
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Establishedneedforopenspacemaintenanceandsocialvalueoutcomes
Category Strategy Plan
Areyouseeingsocialbenetsaspartofa biggerpicture?CumbriaCC(page49)sawthepotentialtoincludesocial valueacrossallcontracts.
Service Design /Specifcation
Usedprepphasetoincorporatesocialvalueoutcomesinopenspacescontractspecication
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> How social value was securedThe tender process
AlthoughGrampianHAwaskeentosecuretrainingandemploymentopportunitiesfrom itscontractorstheorganisationwasunsureofthelegalbasisofsuchanapproach.Legal advicereassuredthemthataslongastherewasaclearstrategictwithGrampianHAsaimsandthatthesocialbenetwasthecore purposeofthecontract,itwaspossibleto requiresocialvalue.GrampianHAconcludedthat theirstrategicobjective3gaveaclearremittodevelopsocialvalue:Promote social inclusion through community
based projects.
GrampianHApilotedanamendedprocurementprocedureforthecontract.Thetenderwas weighted30%priceand70%qualitytoensure thatpricewouldnotoutweightheotherbenets inawardingthetenderwhilestillensuringthat thecontractrepresentedbestvalue.Thequalitycriteriaincluded:Quality o workmanship and service and
community benefts, training and added value
in terms o the Associations wider role
Eachqualityheadingwasmeasuredusingquestionswithaweightedscore,dependingonits priority,withindividualscoresaddingupto100 across a section.
Thescoregavecontractorsanideaoftheimportanceofeachqualityareatothe Association.TheAddedValueelementofthequalitycriteriacarrieda30%weighting.The Tableshowseachelementoftheaddedvaluecriteria.
> Contract AwardAlthoughanumberofcontractorswereableto demonstratehowtheyrecruitedandsupported long-termunemployedpeopleintheworkplace, SolsticeNurseriessubmittedabidwhichhada winningcombinationofpriceandquality.
> What social value was achieved?SolsticeNurseriestenderdescribedhowthey wouldmeetthesocialclausesby: Employingamaintenanceassistant Throughtheirsocialaimstatementasasocial
rmemployingseverelydisadvantagedpeople ProvidingVocationallyQualiedandother
recognisedtraining Sourcingmaterialsandserviceslocally
Part 3 Added Value (30%) Marksallocated
3.1Thenumberofnewjobsthatwillbecreatedthroughsecuringthiscontract 203.2Thenumberofunemployedpeoplewhogainemploymentasaresultofsecuringthiscontract 203.3Thenumberofpeoplecompletingrecognisedtraining,asaresultofsecuringthis
contract(pleasestatewhichcourse/courses) 20
3.4Thenumberofpeoplecompletingprogrammestohelpincreasejobrelatedskillsasaresult 203.5Whatdoyoudotohelpsustainability,forexample,inthesourcingoflabour,
materials,plantsetc? 20
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3. CASE STUDY: Liverpool City Council and Bulky Bobs
This case study demonstrates how, by reviewing its tender processes, councils can not only open up competitions to social enterprises,
but also deliver social benefts and achieve greater value or money.
Background Contract Review
In2000,LiverpoolCityCouncilwasexploringhowtodeliveritsrecyclingserviceunderanewregimeofbudgetaryconstraintsasitscontractwithamainstreamcontractorcametoanend.TheCouncilsnancialconcernarosefromthepercollectionpaymentsystemitusedwiththepreviouscontractor.TheCouncilwasreceivingmorecallsthanexpectedtoitsrecyclingservicewhichmeanta10percollectionfeewaslikelytobecometooexpensivefortheCouncil.Theywerealsokeentobuildlinkswith,andsupport,thesocialenterprisesector. TheCouncilapproachedtheLiverpoolbasedFRCGroup.BulkyBobsisoneofFRCssocialenterprisesandprovideswasteremovalandrecyclingservicesforbulkyitemsatthesametimeasprovidingtrainingandemploymentopportunitiesforthelong-termunemployed.
Recognisedunsustainablecostof
peritemcontractpaymentstructureofexistingcontractandpotentialtodeliver
socialvalue
Tender Document
Preparation
Brokeworkintotwocontractsinordertoreducebarriers
tosocialenterpriseinvolvement
Prepare
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&Policy
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Needs analysis and
business requirements
Identiedwaste/recyclingoutcomesandsocialvalueoutcomesrequired
Market & Supplier
Analysis
RecognisedthepotentialforinvolvementofSocialEnterprises
Procurement TeamServiceowner
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> How social value was securedThe tender process
TheCouncilwaskeentoensurethatsocial enterprisesdidnotencounteranyunnecessary barriersinrespondingtothetender.ToensurethiswasthecasetheCouncilsplitthefunding forthebulkywasteintotwocontracts.The rstcontractfocusedondeliveringbulkywaste removalandrecyclingandthesecondfocusedon thedeliveryofvocationaltrainingforhard-to-
reachpeople,suchasthelong-termunemployed, fundedbylocalNeighbourhoodRenewalFund money.Separatingthebasicservice(bulkywaste)fromthesocialservice(vocationaltraining)made awardingthetwocontractsmoreclear-cutandenabledLiverpoolCityCounciltobetransparentaboutexactlywhatitwaspayingfor.BulkyBobswonbothcontractsandwasthemostnancially competitivebidder.Thecontractworkedoutcheaperthanthe previousoneforthecouncil,withBulkyBobs respondingtoalmosttwiceasmanycallsper
yearthanthepreviouscontractor.BulkyBobsbenetedfromthesecurityofanannuallump sumpaymentforitsservices.
> What social value was achieved? TheCouncilprovidesawiderserviceforthe sameamountofmoney TheCouncilhasreduceditslandllcostsand
benetsfromBulkyBobscontributiontoreducingthecityscarbonfootprint
BulkyBobsemployslocalpeopleanduses localsupplierswherepossible,whichmeansit makesasignicantcontributiontothelocal economy
Longtermunemployedpeoplebenetfrom
realworkexperienceandmanygoontofull-
timeemployment Localfamiliesbenetfromthegoodquality,
affordablerefurbishedfurnituresoldby BulkyBobssells
BulkyBobsnowprovidesservicestotwo otherLocalAuthorities-Oldhamand Warringtoncouncils.
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4. CASE STUDY: Wakefeld Metropolitan District Council, the Yorkshire Purchasing
Organisation and Fresh PasturesWakefeld Council and Yorkshire Purchasing (YPO) organisation showed that social enterprises are well placed to deliver contracts with
added value when procurers remove barriers to tendering through, or example, awareness raising and market making.
BackgroundService needs
& business
requirements reviewFreshPasturesisaCommunityInterestCompany(CIC)setupby2peoplewhowantedtotakeamoreinnovativeapproachtoprovidingmilktoschools.Aswellasprovidinglocalmilktheyalsowantedtoprovideemploymentopportunitiesforpeoplewithdisabilitiesandthelong-termunemployed.25%ofitsworkforcecomprisespeoplewithadisabilityandtheremainderarerecruitedfromthelong-termunemployed.Anyprotisring-
fencedforsocialbenetandploughedbackintothecompany.
Recognisedimportance
ofaddressingsustainabilityand
socialvaluein
commissioning for
nextphase
Market Development
Tookinitiativetoopen upthemarkettoSEs
andSMEsthroughinformation sessions
andsupport.
Prepare
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Perormance
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Reviewedprocurement approachandincorporatedsocialbenet%
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> How social value was securedThe tender process
In2007contractsfortheprovisionoffreshmilk withYorkshirePurchasingOrganisation(YPO),apurchasingconsortiumforlocalauthorities,were dueforrenewal.WakeeldCouncilwaskeentoworkwithYPOtoestablishnewcontractsthat tookaccountofsustainabilityissues. YPOandWakeeldCouncilprocurementteamworkedtogethertodevelopaprocurementprocessthatrecognisedsocialbenets.5%ofthe totalawardcriteriawerebasedonsustainableandcommunityfocusedbenets.Theyalsoaimed toensurearangeofsupplierscouldbidby: Holdingatenderclaricationsessionwhere
theyrespondedtoquestionsaroundthetenderprocessandspecication
Holdingengagementeventsacrossthebusinesscommunitytoraiseawarenessaboutprocurementopportunitiesandgivenon-
traditionalcontractorssupportandguidance ontheprocurementprocess
TheSocialEnterpriseSupportCentrealsohelped thirdsectororganisationstodeveloptheir tenderingskills.
FreshPastureswasoneoftwosuccessfultenderersawardedframeworkcontracts.DairyFarmerswastheothersuccessfulcontractor-aco-operativeofregionalandnationaldairyfarmers.> What social value was achieved?Environmental:minimisingfoodmiles,recyclablecartonsSocial:employmentpolicyEducational:Aswellasprovidingchildrenwithmilkatschool,theyusethecartonstoeducate youngpeopleonhealthyliving,gooddietary planning,environmentalissues,socialinclusion,equalopportunityanddisabilityawareness. Economic:localproduce,communityfocusInacommissioningrelatedSROIimpactmappingexercise,FreshPasturesidentiedthatforevery1ofcontractdeliverable,59pofsocial returnwouldalsobederivedinenvironmental, educationandemploymentbenets.
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5. CASE STUDY: Camden Council and Holy Cross Centre Trust (HCCT) consortium
(Mental Health Day Care Services)Camden responded to the conclusions o a Best Value review by developing an outcomes based approach to commissioning which not only
identifed service related outcomes but social, economic and environmental outcomes it wished to achieve.
BackgroundContract Review
In2005,aBestValuereviewoftheCouncilsmentalhealthdaycentresfoundthattheywerenotmeetingtheneedsofsomeoftheboroughscitiz