www.coventry.gov.uk

Social Value TOOLKIT

Coventry City Council -

Social Value Toolkit1 Introduction2 What is Social Value? 3 The role of the Social Value Working Group

and Principle Owners4 Commissioning and Procurement5 Social Value and The Council Plan6 Social Value Outcomes 7 Social Value Indicators8 Social Value Questions9 Case Studies10 The Sub Regional Procurement Strategy 2015 - 202011 Governance Arrangements12 Obtaining Further Information13 Useful Contacts

1 IntroductionThe Social Value Toolkit has been designed to help Council officers understand what Social Value is in order to comply with legislation and be able to practically consider and achieve Social Value from commissioning and procurement activities. In doing so, we can help achieve positive outcomes and value for the City through the contracts we procure.

The Toolkit provides guidance on how to maximise the benefits of Social Value though supplier contracts by providing:

› guidance on how to ensure compliance with Social Value Legislation

› guidance on following the Council’s governance requirements during procurement and commissioning processes

› examples of Social Value outcomes that could be identified for use in contract(s)

› examples of indicators to measure and track the progress of Social Value delivered through contract(s)

› example questions to ask during the tender stage so that suppliers can evidence what they will deliver through the proposed contract(s) to achieve Social Value

› examples of case studies demonstrating where Social Value has been achieved through contract delivery

2 What is Social Value?The Public Services (Social Value) Act 2012 requires the Council “to have regard to economic, social and environmental well-being in connection with public services contracts; and for connected purposes”.

This means that we must consider where added value and benefit, in relation to economic, social and environmental aspects, can be delivered to the City above those already delivered as part of the requirements of the specification.

The Council has adopted the definition of Social Value as set out by the Sustainable Procurement Taskforce. Social Value is defined as:

a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment

The Act applies to services contracts and contracts which combine service with the purchase or hire of goods, however, the Council encourages consideration in all contracts including goods, services

and works above the EU threshold. The approach for contracts that fall below the EU threshold should be to maximise outcomes where possible.

Commissioning and procurement leads must ensure that Social Value considerations are relevant and proportionate to the goods or services procured, as stated in the Act “The authority must consider … only matters that are relevant to what is proposed to be procured and, in doing so, must consider the extent to which it is proportionate in all the circumstances to take those matters into account”.

The aim of the Act is not to alter the commissioning and procurement processes, but to ensure that as part of these processes, councils give consideration to the wider impact of the services delivered.

The Council approved a Social Value Policy, many extracts from this policy are included in this guide.

3 The role of the Social Value Working Group and Principle Owners

A Social Value Procurement Working Group has been established to:

› Understand and identify the application of the Public Services (Social Value) Act 2012 as a part of the day to day business carried out by the council

› Support the implementation of the Act as a part of the work being carried out in their respective areas within the agreed guidelines of the council and the relevant regulations

› Work in partnership with internal colleagues and external parties (business, social enterprises, voluntary sector and interest groups) to deliver the agreed outcomes relevant to the Act in their respective areas

› Work together corporately to achieve the desired outcomes

The group is chaired by the Assistant Director of Procurement and members of the group include: Head of Procurement, Head of Strategic Support (Public Health), Skills and Growth Manager (Economy and Jobs), Low Carbon Project Development Officer (Environment Advice Service), Procurement Officers and representatives from Corporate Policy and Research and Commissioning.

Key contacts within the Council, and members of the Social Value Working Group, have been identified to help maximise the benefits that can be achieved through Social Value. These experts are known as Social Value Principle Owners and are aligned to each of the 3 areas: Economic, Environment and Social. The role of Principal Owners is to advise procurement and commissioning officers on how benefits might be achieved through the implementation of Social Value.

The Principle Owners are: › Economic Julie Venn-Morton, Skills and Growth Manager, Economy & Jobs Team› Environment John Kyffin-Hughes, Low Carbon Project Development Officer,

Environment Advice Service › Social Heather Thornton, Head of Strategic Support, Public Health Directorate

Principle Owners will discuss with commissioning and procurement leads whether:

› The procurement would best be commissioned through lots (better enabling local small and medium-sized enterprises (SMEs) and or social enterprises to apply to supply the service)

› The benefits could be considered as ‘core’ to the subject matter of the service to be procured and as such can be included in the award criteria for the contract or in the service specification as a mandatory requirement

› The benefits, whilst not suitable for inclusion as award criteria, might be included as a clause (a performance obligation) within the contract once awarded

› Defining the benefits being sought, such that they can be expressed appropriately in the business case for the procurement and in all related procurement processes and documents (Official Journal of the European Union (OJEU) advert, PQQ, ITT etc).

› Considering how social value benefits should be weighted and evaluated when included as an award criteria

› Considering how agreed benefits (either included as an award criteria or as a performance obligation in the contract) should be specified, measured and monitored.

4 Commissioning and ProcurementThe opportunities to secure improvements to social, environmental or economic wellbeing will vary from service to service but should be considered from the outset and throughout the commissioning, procurement and contract management lifecycles – when reviewing service provision; conducting a needs analysis; consulting stakeholders and/or the marketplace; specifying the services to be procured; evaluating supplier bids and Social Value benefits offered; performance management and monitoring of the service and contract management and compliance.

It is the role of service commissioners and procurement leads to consider, with the support of Principle Owners, on a contract by contract basis, the potential social value outcomes that could be delivered through the procurement process and the most appropriate procurement strategy to achieve these.

Governance ProceduresGovernance arrangements are in place for the approval to procure goods, works and services via established Strategic Category Panels. The governance arrangements include Social Value with the aim to consider, capture and evidence the benefits delivered.

Commissioners and procurement leads should ensure that Social Value is considered and included throughout this process and make the necessary links in with the Principle Owners early on in the procurement cycle.

Social Value will be captured in governance documentation including:

› Procurement Outline Document (POD) - PROC 2 – Approval to Procure – to detail considerations to Social Value including:

› Relevant areas considered; Environmental, Economic and Social

› The consultation process conducted

› Plans for key performance indicators, monitoring and contract management provision

› What Social Value outcomes will be included in the tender evaluation criteria

› Post Tender Report - PROC 3 – to summarise the Social Value to be delivered as part of the contract award

› Performance Review & Summary Report – PROC 4 – to provide an update on social value monitoring and benefits

› Procurement Outline Document – PROC 7 – Grants – to detail the considerations, measurement and monitoring of social value to be derived from the grant

ConsultationIn discharging its statutory duties, the Council is required to consider whether consultation should take place as part of the commissioning process, so as to allow the community and voluntary sectors to be more closely involved. Consultation should be considered as part of the process of looking at how a procurement might be offered for tender which would improve the area’s economic, social and environmental well-being.

Under the Act, and detailed in the Procurement Policy Note - The Public Services (Social Value) Act 2012 – advice for commissioners and procurers “…. if there is an urgent need to arrange a procurement the requirements to consider consultation and the impact on social, environmental and economic well-being can be disregarded if it is impractical to consider them. Urgency caused by undue delay by an authority will not be a valid reason not to comply with the Act’s requirements”.

By carrying out consultation prior to the procurement, commissioners can consider social value at the outset and may consider to shape or adapt the approach and outcomes of the specification. The Act does not prescribe how the results of consultation should shape the procurement.

The Procurement ProcessWhere Social Value has been identified as being appropriate for the procurement, commissioners and procurement leads will work together to ensure that social value outcomes detailed are proportionate and relevant to the specification of the service, in line with the Act, and detailed appropriately in tender documentation.

Bids from suppliers will need to demonstrate their, and where appropriate their supply chains’, ability to add economic, social and environmental value to the city above and beyond simply providing the tendered service and provide evidence which would contribute to the outcomes specified. Bids will be evaluated in line with the outcomes specified in tender documentation.

In including and evaluating Social Value, it allows a council, for example, to choose a supplier under a tendering process who not only provides the most economically advantageous service, but one which goes beyond the basic contract terms and secures wider benefits for the community.

Contract Monitoring and ManagementFollowing the award of contract(s), Social Value should be included in the monitoring and reporting arrangements agreed with suppliers. It is important that the economic, social and environmental aspects are captured using key performance indicators, where possible, in order that the success of Social Value can be measured and quantified. Social Value should be included on the agenda for on-going performance and monitoring meetings, as well as annual contract review meetings, in order to evidence the Social Value benefits achieved and help identify actions where appropriate.

Who What When and Where How

Com

miss

ioni

ng Review

of Service Provision

Incorporate Social Value in:

Consider who should be consulted with, including Small and Medium-sized Enterprises (SMEs) and Voluntary and Community Organisations and Social Enterprises (VCSEs), and what social benefits and outcomes could be achieved through the procurement process, in addition to the goods/service/works being considered/tendered.

} Needs analysis

} Options appraisal

} Consultation – Stakeholders

} Consultation – the Market Place

} Business Case

Com

miss

ioni

ng a

nd P

rocu

rem

ent Approval

to ProcureSocial Value will be included in the approval and governance process documentation:

} PROC 2 – Approval to Procure, which goes to procurement panel (procurements with a whole life cost of between £50k and £1m) and procurement board (whole life cost of more than £1m) for approval

} Cabinet Approval / report (procurements with an annual cost of £1m+)

} PROC 7 – Grants

You will need to demonstrate that you have considered Environmental, Economic and Social well-being as part of the process and evidence how you will ensure the delivery of social value as part of the procurement, through the evaluation of tenders and monitoring of the contract.

Social Value Principle Owners must be involved at this point of the process but can be involved earlier.

Consider the Social Value outcomes, indicators and questions detailed in this document for inclusion in the process.

When to consider Social Value

Who What When and Where How

Proc

urem

ent Tender Process

– Specifying the Services/Goods/Works

Social Value will be included in the Procurement process including:

Official Journal of the European Union (OJEU) Notifications:

} Issue of a Prior Information Notice (PIN)

} OJEU advert

} OJEU Award Notice

Tender Documents:

} Pre-Qualification Questionnaire

} Invitation to Tender (ITT)

Tender documents will need to maximise on the potential for Social Value. This will include scored (where possible) Social Value questions. Tender documents will make clear the scoring mechanism and the weighting criteria to be attributed to the Social Value element of the bid. The bid will also detail any contractual elements in relation to Social Value and Key Performance Indicators.

Suppliers will need to demonstrate and evidence what and how they can deliver in relation to added Social Value benefit as part of the specific contract.

Where Frameworks are used, Social Value can be included within the Framework itself but not within specific call-offs.

OJEU notices include the requirement to detail Social Value, for example as part of the weighting criteria.

Com

miss

ioni

ng a

nd P

rocu

rem

ent Post Tender Approval and Governance

processes:

} PROC 3 – Post Tender Report

} PROC 4 – Performance Review & Summary Report

} Performance monitoring

} Contract management

As part of the governance arrangements, officers will be required to detail what Social Value will be delivered as part of the contract using the appropriate PROC documents

Officers will monitor and capture on-going the Social Value benefits delivered as part of regular performance monitoring and contract management meetings.

Where officers feel they are able to provide feedback on either the process or where Social Value has gone well, this should be fed back to the Procurement Team. Lessons Learned can be captured and shared and Case Studies produced to share good news stories.

5 Social Value and The Council PlanThis document should be read in conjunction with the Council Plan which sets out the Council’s vision, values and priorities and provides context for determining the Council’s approach to social value. Where outcomes can be linked to the key priorities in The Council Plan, this should also be recorded using the appropriate governance documentation (PROC documents).

6 Social Value OutcomesThe outcomes below will allow Council officers to consider the economic, social and environmental well-being of the city and its residents during the procurement of contracts. These outcomes are based on the vision, values and priorities contained in the Council Plan and should be considered for inclusion in tender documentation:

Econ

omic

Out

com

es Create jobs for local people

Progression towards paying a living wage to employees

Support young people into apprenticeships

Support local people to maximise their knowledge and skills and access employment opportunities

Promotion of opportunities to work with social enterprise partnerships, voluntary and community sector organisations and small and medium-sized enterprises

Enhance Coventry’s profile as a city that is open for business and secure inward investment

Socia

l O

utco

mes Consider equality and diversity in the provision and

operation of services, including a workforce that is representative of the communities we serve, where relevant and proportionate

Provide opportunities for all, including the most vulnerable, to make a valuable contribution

Promote the safeguarding and welfare of children, young people and vulnerable adults

Improving the health and wellbeing of local residents, incl employees

Reduce health inequalities

Envir

onm

enta

l O

utco

mes Promote initiatives which retain, protect, enhance and/or promote the character

of Coventry’s natural environment for the benefit of local people and wildlife

Efficient use of resources by minimising waste

Reduce energy and fuel consumption in the provision of the service

Effective and improved environmental performance

www.coventry.gov.uk/councilplan/

Coventry A Top Ten City Council Plan

Our vision and priorities for the next ten years

Revised

July 2015

Supporting business growth

Creating the infrastructure

City centre for the 21st century

Raising the city’s profile

Jobs for local people

Reducing the impact of poverty

Supply, choice & quality of housing

Arts, sports & cultural opportunities

Making the most of our assets Active citizens; strong, involved communities

Attractive, cleaner and greener city

Safer communities

Improving educational outcomes

Improving health and wellbeing

Protecting the most vulnerable

Reducing health inequalities

7 Social Value IndicatorsThe Council has identified a set of indicators that can be used to measure and track the amount of social value delivered through contracting arrangements. Commissioners and procurement leads should consider the indicators for inclusion into the award criteria or as a performance obligation, where appropriate. These indicators are not an exhaustive list, and commissioners and procurement leads may wish to consider additional indicators.

Social Value Indicators, where relevant and proportionate

Outcome Indicators

Econ

omic Create jobs for local people • Number of new jobs created within the city

• Number of local people in employment within services commissioned

Progression towards paying a living wage to employees

• Number of suppliers paying a living wage

Support young people into apprenticeships

• Number of businesses operating apprenticeship schemes/work placements

• Number of local people accessing apprenticeships/work placements within services commissioned

Support local people to maximise their knowledge and skills and access employment opportunities

• Number of training places/apprenticeships/work placements

• Number of local people supported to gain a qualification

• Number of employees benefiting from learning and development activities

• Level of qualifications achieved

Promotion of opportunities to work with social enterprise partnerships, voluntary and community sector organisations and small and medium-sized enterprises

• Number of contracts with social enterprise partnerships

• Evidence that suppliers work with voluntary and community organisations via contracting/sub-contracting arrangements

Enhance Coventry’s profile as a city that is open for business and secure inward investment

• Number of new investment projects

• Amount of new money invested in the city

• Number of foreign owned businesses in the city

• New business registration rate

Outcome Indicators

Socia

l Consider equality and diversity in the provision and operation of services, including a workforce that is representative of the communities we serve, where relevant and proportionate

Indicators based on individual service requirements Examples:• Service caters for the specific needs of users.

• Equality profile of service users

Provide opportunities for all, including the most vulnerable, to make a valuable contribution

Indicators based on individual service requirements Examples: • Increase in volunteering

Promote the safeguarding and welfare of children, young people and vulnerable adults

Indicators based on individual service requirements Examples: • Fewer children in LA care

• Reducing incidents of domestic violence

Improving the health and wellbeing of local residents, including employees

Indicators based on individual service requirements Examples: • Provision of facilities and resources

for the wider community

• No of businesses with a workplace health charter

Reduce health inequalities Indicators based on individual service requirements and linked to Council Plan indicators

Envir

onm

enta

l Promote initiatives which retain, protect, enhance and/or promote the character of Coventry’s natural environment for the benefit of local people and wildlife

• Increased biodiversity

• Amount of green space available

Efficient use of resources by minimising waste

• Amount of waste sent to landfill

• Recycling rates

• Reduced packaging

Reduce energy and fuel consumption in the provision of the service

• Reduced carbon footprint of business

Effective and improved environmental performance

• Certification to Environmental Management System Standard or evidence of equivalent environmental management system, for example an Environmental Policy in place

8 Social Value QuestionsIn order to achieve Social Value outcomes, the Council has developed a number of questions for use during the tender process. As a general rule, a minimum value of 5% should be attributed to the scoring criteria, although each contract requirement should be viewed on a case by case basis.

The questions below are provided as examples and may be tailored, or new questions created, to meet requirements of the contract and ensure compliance with the Act in being relevant and proportionate to the procurement.

The generic (open) questions detailed may encourage innovation and solutions that the Council may not

have considered. The (guided) questions under each heading (Economic, Social and Environmental) will help suppliers think about how they can deliver Social Value as part of the contract and may be easier to evaluate against the criteria. Commissioners and Procurers should consider what fits best for each specific procurement activity.

Social ValueCoventry City Council will seek to engage with providers who will be able to promote and deliver to the economic, social and environmental well-being of the City as part of the contract, as covered under the Public Services (Social Value) Act 2012.

Please demonstrate where your organisation is able to meet Social Value considerations as part of the wider impact of goods, works or services, giving specific details of what will be delivered in line with this contract. Your response should give consideration to the following areas:

Select / amend questions as below:

8. What support will be provided to the local supply chain through this contract, including activities, information, resources and organisations? For example, promoting supply-chain opportunities to local voluntary and community sector organisations, social enterprises and small and medium-size enterprises or allowing access to and use of facilities.

9. What opportunities are there for voluntary work and what benefits will volunteers receive?

10. What will be done to ensure your organisation and sub-contractors support workforce development? For example, this could include additional training and development for existing employees, supporting qualifications, mentoring and support.

Social example questions1. How will you promote the safeguarding and

welfare of children, young people and vulnerable adults?

2. How will you provide opportunities for all, including the most vulnerable, to make a valuable contribution and promote social integration? For example, this could include work opportunities for disadvantaged people.

3. How will you consider equality and diversity in the provision and operation of services? For example, this could include ensuring the workforce is representative of the communities served as part of this contract.

4. How will you protect and support the most vulnerable people?

5. How will you work towards improving the health and wellbeing of local residents and employees?

6. How will you work towards reducing health inequalities?

7. How will your supply chain ensure ethical considerations? For example, this could include ethical sourcing practices.

8. How will your organisation work to help others? For example local charities, local community groups, local resident engagement, supporting local culture and heritage. This could include funding specific events and groups, sponsorship or sharing expertise, knowledge or facilities and equipment.

Environmental example questions1. What are the main environmental impacts

associated with delivering the contract outputs and how will impacts be reduced, managed and verified?

2. Have you set any specific environmental objectives to improve environmental performance during the duration of the contract? If so, what are they and how will environmental objectives be managed and verified?

3. Please confirm what will be delivered, as part of contract delivery, in relation to any of the following and how this will be achieved: the re-use of resources, increasing recycling levels to reduce the amount of waste, use of environmentally friendly goods, reducing the carbon footprint, pollution reduction, improving fuel and energy efficiencies

4. Will you operate an environmental management system certificated to ISO 14001 or equivalent throughout the period of the contract?

Generic Social Value Questions1. Please detail what your Social Value offer will

be in relation to this contract and how it will be of benefit to the City and its citizens. This could include social, economic or environmental well-being or benefits and should demonstrate value to be delivered in addition to the requirements of the specification.

2. Please detail how you will contribute to Social Value and The Council Plan, demonstrating social, economic and/or environmental well-being or benefits and sustainability, taking into account the length of the contract.

Economic example questions1. How will you support Coventry City Council’s Jobs

and Growth Strategy Priorities (A jobs and Growth Strategy for Coventry) Examples could include:

› How you will create jobs through the growth of business and investment in the city

› How you will support the recruitment of people from the surrounding area, for example, using the Coventry Job Shop

› How you will help more residents improve their employment prospects within the City and improve their skills though appropriate training, support and long term job prospects

2. How will you support local people to gain access to the employment opportunities that your contract will produce? For example, this could include targeting specific priority target groups (NEETs (a young person who is Not in Education, Employment or Training), Care Leavers, Minority Ethnic Groups, people with physical or learning disabilities, older people, unemployed, ex-

offenders, ex-forces, those with low or no qualifications).

3. How will you consider pre-employment support through labour forecasting? This could include consideration to the types of jobs likely to be required and the skills sets needed.

4. What work experience will you provide and how will this be achieved? For example, this could include different age groups (eg under and over 18s).

5. What work place schemes and opportunities will you provide for apprenticeships, traineeships, higher apprenticeships or other?

6. What training opportunities will you offer and to whom? For example, entry-level employment, engaging the unemployed, specific priority target groups, existing workforce, customer staff.

7. What education engagement will you offer? For example with schools, colleges or training providers and how will this be achieved? For example, through site visits, careers talks, work placements etc.

10 The Sub Regional Procurement Strategy 2015 - 2020Social Value is included within a key theme of the Sub Regional Procurement Strategy 2015 - 2020. The sub-region, made up of Coventry, Solihull and Warwickshire (CSW) has developed a strategy which is derived from the National Procurement Strategy (NPS) for Local Government.

Below is an overview of the sub-regional strategy and a mind-map for the Supporting Local Economies strategy theme, which includes Social Value. The mind map details the National Procurement Strategy theme, priorities and outcomes and how the sub-region (CSW) will respond to achieving this priority;

this includes sustainable procurement choices and removing barriers for Small and Medium-sized Enterprises (SMEs) and Voluntary and Community Organisations and Social Enterprises (VCSEs), through the way we procure.

9 Case StudiesBelow are 3 case studies demonstrating where Social Value has been delivered through contracts procured. Further examples of case studies, can be found on the Council’s web site - Social Value.

Case Study Coventry Fuel Poverty Project

What was the project?Coventry’s Fuel Poverty Project was devised by the Sustainability and Low Carbon Team as an innovative response to fuel poverty in Coventry.

Focusing on insulation and heating improvements for disabled householders likely to be fuel poor, the team successfully bid for £597,000 of funding from the Department of Energy and Climate Change. The third and final phase of the project is currently underway – the life of the project was extended by attracting an additional £223,000 of Energy Company Obligation funding from British Gas.

One of the ambitions for the project was that local contractors should be used to carry out the work. The Council’s Procurement and Commissioning Service examined a number of different framework contracts and identified the Scape National Minor Works Framework as being suitable. One of the attractions of the Framework was that the appointed contractor, Kier Services Ltd, had to place at least 60% of the work with suppliers within a 30 mile radius of the city.

The Sustainability and Low Carbon Team subsequently negotiated with Kier to increase the local supply target up to 100%, and after carrying out their own selection process, Kier appointed Rockwarm, a specialist insulation company based in Nuneaton.

The project enabled Rockwarm to provide employment to twenty nine local employees in order to deliver the project. Five were from Coventry and the remainder lived in Nuneaton, Bedworth and Hinckley. Three new locally based operatives were taken on to be part of this workforce. Two of these, Dan Stokes and Mick Neville, were renderers who had been unemployed, and as a result of the project both received training to NVQ level 2 in external wall insulation. The third was Charlie Miles, an unemployed cavity wall insulation installer. Charlie was also trained to install external wall insulation, and has now progressed within the company to become a Quality Inspector.

This project is an example of the council working smartly to lever in external funds to tackle a pressing local problem for vulnerable people. In so doing it has also helped the city’s economy by providing employment and making it easier for people to avoid high energy costs and be healthier by having better insulated homes.

Project partners:Kier Services Ltd Rockwarm Insulation Ltd Scape System Build Ltd

Value:Dual funded - DECC Local Authority Competition funding £597,000

British Gas Energy Company Obligation funding £223,000

Outcomes:• Fuel poverty mitigated

• Health and wellbeing of disabled householders improved

• 100% of work carried out by local workforce

• Employment and training opportunities for local people

For further information please contact:Dave Shiner, telephone 024 7683 1356e-mail: david.shiner@coventry.gov.uk

Case Study Community Project - The Langleys Care Home

What was the project?To engage apprentices on the Construction Shared Apprenticeship scheme in a local community project utilising their skills learned on the scheme to give something back to the local community.

A team from the Construction Shared Apprenticeship Scheme worked hard to transform the garden at The Langleys Care Home in Coventry, providing a peaceful and relaxing space for residents to enjoy as part of their stay.

The apprentices, alongside staff from BAM Construct UK, fenced off the area, fitted a number of gates and created a sheltered seating area at the rear of the care home.

They also constructed a small decked area for pots and a number of planters to decorate the new facility. In addition to this, they fitted a new wooden handrail along a ramp, making access safer for the residents when using their new space.

All of the planters were designed and built by the apprentices at a specific height, ensuring that the residents themselves will be able to maintain them in the future.

Outcomes:BAM Construct UK, a partner of the Shared Apprenticeship Scheme was successful in securing funding for materials to deliver the community project at the Langleys elderly care home in Coventry.

As well as being a great benefit to the staff and residents at Langleys, the community project was a valuable experience for the scheme apprentices to use their newly learned skills, allowing them to work with different groups and dealing face to face with people outside of their usual working and learning environments.

Comments:“We are delighted with the transformation of the garden, creating a courtyard area. The residents are very happy with the results and as one resident quoted it is now ‘home from home’. The whole team worked very hard on achieving this in just two days and the lads who worked on it should be very proud of their achievements.” Michelle Dooley, Care Home Manager

For further information please contact:Pete Brady, Apprentice Scheme ManagerBAM Construct UKe-mail: pbrady@bam.co.uk telephone 07768 776771

 

Case Study Costain

Meet the Buyer EventCoventry City Council and Costain held a Meet the Buyer event in February 2014.

The event aimed to introduce local SMEs to Costain, who had won the contract for two major developments in Coventry (Friargate Bridge and Whitley Junction). The event was held in a vacant shop unit to enable easy access for businesses who wanted to learn more about the types of contracts Costain wanted to subcontract for. More than 30 people attended the event, from a range of different businesses covering construction, engineering, security to ecology. Following the event one of the businesses that attended, is now in discussions with Costain on a rail electrification project and advance ecological works. They are also listed as potential supply chain supplier for M4 Corridor work which is a £800m bid. Many of the other businesses are now on the tender list for future work allowing the local supply chain to benefit from the larger contracts they award.

FSB Local Authority Awards 2014 Coventry City Council was awarded the Best ‘Small Business Friendly’ Procurement Policy as part of the FSB’s annual Local Authority awards.

The awards celebrate and promote local economic development and the judges comments said ‘Coventry City Council’s application showed how an innovative approach to keeping trade local and has helped local firms to access contracts’.

The Council is determined that local businesses should have the opportunity to bid for supply chain work for major projects and by holding the Meet the Buyer event in partnership with Costain local companies had the opportunity to show what they could do.

Shared Apprenticeship SchemeThe Coventry and Warwickshire Construction Shared Apprenticeship Scheme is a partnership

Costain decided to use the scheme after being introduced at the Meet the Buyer event and went on to appoint a local young person as an administration apprentice. This proved to be so successful that he has now been offered full time employment with Costain.

Costain also agreed to link in with schools to offer site visits and Coventry City Council have subsequently linked them to a number of primary and secondary schools. Costain have also supported a number of local jobs and careers events.

For further information please contact:Julie Venn-Morton, telephone 024 7683 3832e-mail: julie.venn-morton@coventry.gov.uk

initiative between Coventry City Council, BAM Construct UK, local colleges and construction employers.

Supporting Local Economies

Economic environmental and Social Value

Improving Access for SME’s and VCSE’s

Councils gain maximum value from procurement through inclusion of

environmental and social value criteria for goods and services

Councils reduce waste by making sustainable choices when procuring

products and services, helping them to cut costs, and meet social economic

and environmental objectives

Social Value policies and procedures implemented into procurement process where appropriate and

relevant

Opportunities for sustainable procurement choices included in procurement processes where

proportionate and relevant

A wide range of suppliers are encouraged to do business with

councils through use of portals to advertise tender opportunities

Barriers to doing business with the council are removed without compromising due process

Tender opportunities advertised through single sign on portal for the

sub region and Contracts Finder

Spend with different types of organisation is monitored

Procurement processes reviewed to remove unnecessary barriers to

participation for SME’s and VCSE’s

NPS theme

NPS priorities

NPS outcomes

CSW response

Sub Regional Procurement Strategy 2015 - 2020 Coventry CC, Solihull MBC, Warwickshire CC. July 2015 1. Introduction Across the three upper tier authorities within the Coventry, Solihull, Warwickshire (CSW) sub-region, the Councils spend approximately £883m each year on bought in goods, services and works. Spending this money well through effective procurement is fundamental to achieving organisational success for the three authorities and supporting prosperity across the sub-region. The Councils have formally recognised by the signing of a Memorandum of Understanding on 02/03/2012 that working together on procurement can contribute to a wide range of socio-economic benefits including a successful local economy, a thriving voluntary sector, community empowerment, equality, consideration for the environment and value for money. (Guidance for drafting: it is essential to include a spend chart in this section)

2. Scope of the Strategy This is an over-arching strategy that seeks to clarify the strategic direction for procurement across the sub region whilst allowing for more localised delivery plans within each of the three authorities to meet specific need. Procurement is an essential element of cost effective and efficient services. It impacts on Members, the Chief Executive, the Corporate Leadership Team, staff, the public, suppliers and partners. A clear, comprehensive and effective procurement strategy is crucial to ensuring that good value services are provided whilst driving change and continuous improvement. For the purpose of this strategy the procurement process has been defined as: “The whole process of acquisition from third parties which covers goods, services and works. The process spans the whole life cycle from initial concept and definition of business need to commercial contract management and the effective management of markets, through to the end of the useful life of an asset or end of services contract. It involves options appraisals and the critical “make or buy” decision which may result in the provision of services in-house in appropriate circumstances” 3. National Context In July 2014 the Local Government Association launched a National Procurement Strategy (NPS) for Local Government after a period of consultation with Chief Executives, Heads of Procurement and central government. It describes the procurement policy landscape in 2014 which is represented by the diagram below. This illustrates the major policy related developments which form the context for the National Procurement Strategy and the sub regional procurement strategy.

To facilitate the delivery of effective procurement in the above policy context, the NPS 2014 has been structured around 4 key themes.

4. National Procurement Strategy themes 1 Making Savings NPS Priorities: Category management, partnering and collaboration, contract and supplier management, performance and transparency, risk and fraud management, demand management 2 Supporting Local Economies NPS Priorities: Improving access for SME’s and VCSE’s, Economic, environmental and social value 3 Demonstrating Leadership NPS Priorities: Single cohesive voice, commitment from the top, procurement training, commissioning 4 Modernisation NPS Priorities: Commercialisation and income generation, supplier innovation, EU Directives, using technology

6. Procurement Structure within the Sub Region The Shared Procurement Strategy and Joint Savings Plan, to which CCC, SMBC and WCC have signed up to since 2010 has generated savings from a number of collaborative exercises e.g. food, highways, agency staff and fostering. The sub-regional focus for procurement has been reconfirmed by Chief Executives and Leaders of each authority in 2015. This will support the further development of intelligent strategic procurement across the sub region leading to the delivery of savings and efficiencies in line with national austerity measures whilst using procurement power wisely to deliver the required economic growth in our local communities. The operating model for the shared procurement service is that each authority retains its own procurement team with identified category leads in particular authorities. This means that where contracts are shared, one category manager lets the contract on behalf of all participating authorities.

8. Our Vision is: Working together to enhance lives within communities The challenges ahead are to: understand future demand for service provision through engagement understand markets and identify procurement excellence that will enhance lives work with partners to enhance lives place social and economic regeneration and the environment at the heart of procurement shape markets to be able to procure from a diverse and competitive mixed economy of suppliers

including minority businesses, voluntary and community sector groups , small businesses and social enterprises

support Members’ leadership to embed procurement excellence into the culture of the Council innovate through the identification of appropriate service delivery options drive down procurement costs minimise exposure to risk make procurement a key management activity, delivering projects through multifunctional teams Equip staff with the right skills and training to deliver excellence use procurement processes and in particular e-procurement to support organisational and

behavioural change be customer focussed using internal consultation and involvement to support service outcomes

and improve performance comply with legislation relating to procurement activity, e.g. Public Contract Regulations,

Freedom of Information Act Work sub regionally in line with the Memorandum of Understanding Work with regional and national Public Bodies to benefit from economies of scale and shared

expertise This vision is in line with the strategic direction of each participating authority and therefore will help deliver Council strategy, policies and plans.

9. NPS outcomes and CSW delivery The most effective way to meet the procurement requirements in the national and local contexts is to base the Sub Regional Procurement Strategy on the key themes of the National Procurement Strategy. This will demonstrate effective procurement delivery in line with the national strategic direction whilst meeting local ambition and needs. The attached charts show CSW’s response to the NPS themes, priorities and outcomes. Individual authorities may choose to implement some or all of the CSW responses depending on local priorities. CSW responses have been RAG rated to indicate importance with red, amber, green representing high, medium and low importance.

5. The Legislative Framework within which we procure All of the above needs to be delivered within a legislative framework which is significant and complicated. The Public Contract Regulations 2015 (PCRs) enact the 2014 EU Directive (2014/24/EU) into UK law and lay out in detail how public procurement must be undertaken across all of the member states within the European Union. Examples of other law impacting procurement are: Public Services (Social Value) Act 2012, Competition Act 1998, Localism Act 2011 Freedom of information Act 2000, Equality Act 2010.

7. Governance The shared procurement service is governed by the Shared Service Directors group: Executive Director Resources, Coventry, Director for Resources, Solihull and Strategic Director for Resources, Warwickshire, which meets quarterly. The Procurement Management Team, with representatives from all upper tier authorities and a Districts’ representative meets monthly and monitors performance against a set of agreed key performance indicators.

11 Governance ArrangementsThe delivery of Social Value is the responsibility of the Executive Director Resources, reporting to Cabinet Member Strategic Finance and Resources. All procurement decisions will be managed through the procurement processes, as set out in the Council’s constitution.

The Council will use its existing governance arrangements, through both its democratic governance, as set out in the Council’s Constitution, and its Strategic Category Panels, in order to ensure scrutiny and control of procurement decisions so that the Council achieves social value, where appropriate.

The Strategic Category Panels ensure that the Council achieves the best possible outcomes using the resources available, as efficiently as possible. By embedding social value into the Procurement Outline Document (POD), which is taken to Strategic Category Panels for approval, the Council will meet its obligations under the Public Services (Social Value) 2012 Act.

A Social Value Procurement Working Group exists which meets quarterly. The objective of this group is to ensure the implementation of the act and to discuss and agree how best to achieve Social Value benefits and record and share information.

The Procurement Team will capture information where suppliers have committed to deliver Social Value via the Strategic Category Panel process.

Commissioning will be responsible for monitoring delivery in line with monitoring and performance reviews. Procurement and Commissioning will review Social Value delivery as part of contract review meetings.

12 Obtaining Further Information

Further useful information can be obtained:on the Council’s site - http://www.coventry.gov.uk/

› Information on - Social Value

› Information on our - Business Charter, the Business Charter which linked to each of the Social Value areas; Environmental, Economic and Social. The Charter is aimed at working with partners and suppliers to maximise value through the spirit, style and behaviours we adopt.

Other web sites› The Public Services (Social Value) Act 2012 -

http://www.legislation.gov.uk/ukpga/2012/3/enacted

› The Government issued guidance on social value in its Best Value Statutory Guidance in September 2011. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/5945/ 1976926.pdf

› Procurement Policy Note – The Public Services (Social Value) Act 2012 – Advice for commissioners and procurers. This can be accessed using the link below. Note that this document refers to the 2006 Public Contract Regulations which have now been superseded by the 2015 Contract Regulations: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/79273/Public_Services_Social_Value_Act_2012_PPN.pdf

› The SROI Network - http://socialvaluecommissioning.org/index.php?title=Home

13 Useful Contacts

Procurement:• Procurement.services@coventry.gov.uk, telephone 02476 83 3757

The Procurement team are interested to hear feedback in relation to Social Value to ensure we, as a Council, continue to adapt our approach to maximise Social Value outcomes.

Social Value Principle Owners: • ECONOMIC

Julie Venn-Morton, Skills and Growth Manager, Economy & Jobs Team Julie.Venn-Morton@coventry.gov.uk, telephone 02476 833832

• ENVIRONMENT John Kyffin-Hughes, Low Carbon Project Development Officer, Environment Advice Service John.Kyffin-Hughes@coventry.gov.uk, telephone 02476 831910

• SOCIAL Heather Thornton, Head of Strategic Support, Public Health Directorate Heather.Thornton@coventry.gov.uk, telephone 02476 832884

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