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Community Benefits in ProcurementScottish Universities Finance ConferenceWorkshop 6
23 November 2018
Workshop Agenda
• Procurement and Community Benefits overview• Strategic Context and the City Region Deal• UoE approach so far—Key areas• Challenges with CB• Progress so far and emerging opportunities• Further questions and discussion
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Live poll and discussion
Smart phones/PC: wifi eduroam EASE login
Please go to www.slido.com and enter code D671
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Public Procurement
Value for Money when spending public funds
Governed by EU and WTO … probably(?) no immediate Brexit change
Main requirement, competitive tendering through single Scottish EU register
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Community Benefits Requirements in Procurement• Contract clauses requiring suppliers to achieve additional benefits or value in addition to
the main purpose of a public contract– E.g., apprenticeship, training or targeted recruitment commitments as part of building works contracts – Legal requirement in Scotland, called “social value” in England, guidance suggests links to strategic
priorities– EU Rule—not prescriptive, says these can be innovation, social, economic, employment or environment
related
• UoE CB Policy—focus on:– Exploring wide range of activities in line with strategies and capacity– Leveraging to deepen connections between UoE, industry and all of our communities – Community engagement, inclusive growth– Student experience, employment and skills– Research & Innovation
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Examples of potential CB requirements in public procurement (not exhaustive)
• Paid or course credit student internships with supplier• Apprenticeship commitments• SME spend commitments by supplier• Support for third sector organisation or social enterprise• Commitment to training hours for young people,
community members or students• Co-creating research, or incorporating research into
projects, or collaboration on Living Lab activity
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Slido.com test question
What do you think so far about community benefits/added value in public procurement?• Sound’s great…sign me up!• I’m interested…tell me more• I am sceptical about the relevance to my
work and whether this is a priority for the University
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Procurement at the University of Edinburgh
£353million influencable spend for 2017/2018
£1.5billion capital plan
Procurement is full strategic partner beyond “commercial/cost function”
Focus on sustainable procurement and fair trade23 November 2018 | University of Edinburgh Finance Department | 9
UoE Commitments
Strategic Plan—Impact for Society• Contributing Locally• Influencing Globally• Building ties with
industry• Digital transformation
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UoE Commitments Continued
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Community Engagement StrategyHeadline Commitments include:• Widen access to UoE
Research• Strengthen Community
and University Relations• Encourage collaborative
working• Open up our buildings for
the wider public• Also: figure out what
we’re doing!
CB development: Key Partner Examples
Edinburgh Innovations
Research Support Office
Careers Service
Social Responsibility and Sustainability Department
City Region Deal DDI Programme Team
City Region Deal Data Driven Innovation Programme
£1.3b deal signed Aug 2018, UoE leads innovation component DDI Programme
Opportunities for industry partners, across five TRADE themes:
– Talent– Research– Adoption– Data– Entrepreneurship
The City Region Deal
Major capital spend and integrated Skills programme including Digital Skills Gateway led by UoE
Inclusive growth agenda: major component joined up approach to procurement CB between partners—looking at “anchor institution approach”
Discussion: What would you like to see here?
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Edinburgh and South East Scotland City Region Deal Data Driven Innovation Programme
What does DDI/City Deal mean for :
Our communities?Our students and staff?
What does real inclusive growth look like
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Supplier Benefits: Student experience/employment
UoE Careers Service, key partner
Opportunity to enhance the student experience
UoE Area Examples– Graduate employment opportunities – Internships, including “challenge based”– Emerging DDI Skills Gateway– Girls in Tech
Suggestions, activities, priorities and capacity?
Supplier Benefits: Community Engagement/Impact
UoE Community engagement activity– Youth engagement activities, including those related to
Widening Participation (e.g. Access to the Professions)UoE Area Examples
– DDI School Engagement Programme– Digital Ambassador programme – Homelessness Health and Inclusion Centre– Ask our third sector and community members!
Suggestions, activities, priorities and capacity?
Supplier Benefits: Environment
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Procurement Co-lead successful grant bid with ECCI, SRS and Estates to support our construction suppliers to create Data Driven Innovation and decarbonisation innovation business cases related to the Built Environment, we have bid to upscale this work to leverage procurement relationships to embed innovation and meet our Zero by 2040 carbon ambition
Supplier Benefits: Research and InnovationUoE capacity and benefits for industry engagement on R&I, e.g.:
– Sponsoring/co-funding academic research – Sponsoring student research (eg Phd sponsorship)– Joint research projects through Innovate UK or Industrial Strategy Challenge
Fund– Sponsorship of Studentships
Formal benefits vs. opportunities to build tiesDDI links and City Region Deal centres, including Bayes
Suggestions, activities, priorities and capacity? Any link to your activity?
Challenges overview
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Challenge: Value for Money
Example, UoE Estate: 550 buildings, half of budget needed is available—every pound counts—additional CB requirements could cost more
On the other hand: We are growing—can we demonstrate genuinely inclusive economic growth? What about our reputation?Discussion: how could we deal with this?
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Challenge: Ad Hoc activity
What impact do one-off activities actually have?
Is it worth the effort to engage suppliers, community and other players in a “joined up approach?”
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Challenge: multidimensional problems, lack of expertise or community input
Solutions to problems are complicated, and evidence-based, consultative approaches are needed—but often don’t fit into project timescales.
How do we address this problem?
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Challenge: Reporting
How do we measure social impact quantitatively?
How do we tell a coherent, qualitative narrative or story?
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Challenge: Implementation and resourcing
Who’s job is it to plan and deliver these? Procurement? Do we need extra staff? Is it worth the time/effort?
How could we address this?
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Addressing challenges: what we’re doing
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• We’re working with City Region Deal DDI team and across University to identify activity that aligns with the key priorities
• Working with City Region partners to explore a joined up approach and learning from our partners
• Focusing efforts on ensuring CB commitments from suppliers are implemented and reported
• Aiming for CB to contribute and complement to emerging integrated reporting, social impact and inclusive growth measurement approaches
• Work is on-going, but in October, the University was recognised with a Government Opportunities award for its work in Scotland to develop community benefits in procurement
Questions and discussion
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Thank you!
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