Joe Irvin

Chief Executive, NAVCA

@JoeIrvinNAVCA

Joe.irvin@navca.org.uk

160,000 registered charities

600,000 below the radar groups

60% adults give to charity

25% of adults volunteer monthly

Source: UK Civil Society Almanac 2012

Projected fall in VCS public funding

£227bn - total public spending on procurement

£11.2bnVoluntary sector contracts

A Beginner’s Guide to

Commissioning

NAVCA

Pathways Through the Maze

NAVCA and NCVO

The Act requires public authorities to have regard to economic, social and environmental wellbeing ahead of procuring services…

..and how, in conducting the process of procurement, they will act to secure that improvement.

“Relevant authorities”

• Govt departments • Local authorities• NHS Trusts• CCGs• Fire & rescue services• Police• Maintained schools and FE/HE• Housing associations

Act applies to …

• Service contracts rather than goods• Contracts above EU thresholds• ‘Pre-procurement’ – i.e. what an

authority must do prior to commencing a procurement exercise

Social value outcomes In contract specifications:

Relevant and proportionateSpecific, measurable and verifiableA clear part of the award criteria

SV not defined in law. Government says it is:“…the additional benefit that can be created by procuring or commissioning goods and services, above and beyond the benefit of merely the goods and services themselves”

Must also consider if consultation needed– but not a duty to consult . Govt assumes consultation “digital by default”

BIRMINGHAM

The Case of BirminghamBCC’s case social value is:

Aligned with priorities in Leader’s policy statement :

• Tackling inequality and promoting social cohesion.• A prosperous City built on an inclusive economy.• Involving local people and communities.

Underpinned by existing policies :• Living Wage policy.• B’ham Charter for Business Social Responsibility• Buy Birmingham First• Social Value Policy

Birmingham Charter for Business Social Responsibility

• Local employment• Buy Birmingham First• Partners in communities • Good employer• Green and sustainable • Ethical procurement

Birmingham Charter in Action…Carillion central library contract : Included SV clause (apprenticeships, local employment, training).

Wilmott Dixon: Maintenance c.60,000 council housing units – similar SV clause.

Birmingham Energy Savers green deal contracts

• Environmental targets • SMEs/small suppliers – supply chain• Training/employment opportunities• Health outcomes• Engaging schools/Young People

BCC commissioners required to:

1. Communicate SV clearly to the marketplace

2. Examine service specifications for additional SV outcomes

3. Give examples of SV in specs. – specific, measurable, verifiable

4. Align with corporate aims, Leader’s Statement, key policies

5. Require tenderers to include SV Statement in submission:

1. Additional SV outcomes they can achieve

2. Kind of evidence they will be able to provide

6. Ensure accessibility/ inclusiveness in how ITTs are structured, publicised etc.

Oldham Social Value frameworkWe are committed to, and we expect of suppliers:• supporting the local economy, including through any sub-contracting;• delivering at neighbourhood-level wherever appropriate;• reducing demand for public services and including appropriate incentives in contracts, such as contract extension;• supporting the community and voluntary sector through our suppliers and contracts;• fostering positive relationships between and within different communities

What does this mean for VCS?

1. Can’t restricted contract to social enterprise/third sector.

2. VCS competitive advantage – but not monopoly on SV

3. Emphasis on:

1. Articulating SV that is relevant to contract, clear and understandable

2. Monitoring SV3. Developing evidence that is clear, easily

conveyed and can demonstrate SV has been achieved

Evidence of impact

Least developed part of the process.A ‘light touch’ regime:

• Nothing that adds to management costs• Not likely that SROI will be favoured – but

SROI is one foundation of appropriate evidence

What to do:

Review the messages you use to articulate and define the social value you create.

Are they clear, punchy, precise?

Are they: RELEVANT? APPROPRIATE? SPECIFIC? UNDERSTANDABLE?

Look for evidence from:• Specific services• Ways of working/delivering that are unique to you

(your USPs)• Particular interventions• Impact and outcomes for specific groups of

service-usersLook for what distinguishes you from other providers

– especially private sector.

Developing a social value strategy

We will need to work together to solve major problems

LGA’s Graph of Doom

www.navca.org.uk/socialvalue

Joe Irvin Chief Executive, NAVCA

@JoeIrvinNAVCAJoe.irvin@navca.org.uk