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About echelon Procurement - £4.0 bn services procured to date Review Process – process built around full stakeholder engagement Bespoke – developing specific models built around each client’s needs Savings – £400m+ of direct savings Innovative – development of new delivery models Award Winning – multiple awards from sector Social Value – working with hact and Trowers to develop SV toolkit
Citation preview
Social Value in Procurement
21st January 2016
Delivering Social Value in Harder Times
Introduction
• About echelon• Scoping • Developing the Tender• Pricing considerations• Procurement model considerations• Cost and Quality evaluation• Locking the offer• Measuring performance• Questions?
About echelon
• Procurement - £4.0 bn services procured to date• Review Process – process built around full
stakeholder engagement• Bespoke – developing specific models built around
each client’s needs• Savings – £400m+ of direct savings• Innovative – development of new delivery
models• Award Winning – multiple awards from sector• Social Value – working with hact and Trowers to develop SV toolkit
Scoping
• Define Social Value requirements for project• Engagement of stakeholders during stage• Soft market test to ensure viability • Use of hact tools (e.g. Community Insight)• Consideration of Tenant’s requirements• Align with your profile/aspirations• Ensure you select best procurement route Tip – allow enough time in procurement timetable
Areas for Consideration
• Training Academy• Employment opportunities (targeted)• Supporting Residents back to work• Apprenticeships• Local supply chain• Use of SMEs• Support Social Enterprises• Engagement with schools/colleges/agencies• Community events
Developing the Document
• Clear definition of Social Value in ITT• Set the scene for bidders - data • What’s the approach?
• Route 1 - this is what we want – deliver it• Route 2 – tell us what you can/will do?
• More prescriptive = easier to measure harder but differentiate
• Ensure granular cost model (more later)
Consideration – prescriptive vs. open-ended?
Example - Definition
Example – Term Brief
Pricing
• Understanding of costs attached to offer• Direct Overhead?• Levy?• Central Office Overhead?
• Consideration of how you want cost presented• Ensure clarity within pricing model• Recommend granularity for evaluation purposes
Procurement Process
• Allocate proportionate marks within evaluation process
• Open/Restricted – need to define offer as no interaction
• CD – allows development and ‘honing’ of offer• Use of specific dialogue session on CD
Evaluation - Quality
• Clearly defined evaluation criteria• Weight score appropriate to importance• Potential to pass/fail on minimum requirements• Measurement of additionality• Define evaluation panel to bidders• Ensure evaluation panel equipped
Key Consideration – how do you evaluate ‘additionality’?
Evaluation – Quality Example
Evaluation - Cost
• Bottom line evaluation or line by line evaluation• Extract Social Value cost within process?• Ensure bidders have followed instructions• Will largely be driven by choice of commercial
model
Consideration – bottom line or extracted costs (this is a key topic of discussion with working group)
‘Locking’ the Offer
• Two strands to the delivery of Social Value• Strand 1 – your stated requirements• Strand 2 – the Service provider’s offer
(additionality)• Develop ‘Promises’ document and append to
contract• Utilise mobilisation period to review and ensure all
stakeholders understand • Measure!
Measuring Performance – Delivery
• Develop specific KPI to measure performance• Could be ‘soft’ or ‘hard’ measure• Options:
• Overall performance against target• Individual measures/targets
• Option to link to variable profit and/or develop as a ‘drop-dead’ KPI
• Annualise and reset
Example
Measuring Outcomes
• Potential to use Wellbeing Value Calculator as part of assessment?
• Ongoing measurement of input versus output costs:
Questions
Mathew Baxter – Managing DirectorE-Mail: [email protected]: 07989 325887