Karen SmithNew Initiatives Manager

Grampian Housing Association

‘Social Enterprises offer a solution to Sustainable

Procurement’

Yes*Social enterprises are profit- making businesses set up to tacklesocial or environmental need*Can offer training and employment opportunities to those furthest away from entry to employment*Can help you achieve YOUR objectives in term of CSR

But….Social Enterprises themselves have a long way to go in terms of *The Green Agenda &*Community Benefits in

Procurement

No But…Social enterprises can……

*Meet multiple objectives with the same expenditure

*Give a competitive advantage

*Deliver innovative solutions and stimulate new markets

Today*Establish what we mean by a Social Enterprise*General comments*Toolkit for RSLs*Suggest a way forward

Buying for Good

A Practical Guide Housing Associations

Social Firms & Community Benefits

in Procurement

What is a Social Enterprise?

Social EnterprisesCommon Characteristics:-

*Enterprise orientation

*Social Aims

*Social Ownership

The bread maker, an award winning Aberdeen social firm, display their wares to Jim Mather MSP, Minister for Enterprise, Energy and Tourism at the S2S 2008

Social Enterprise Trade Fair

All procurement has a social impact, not only

procurement that includes social issues

Our job is to connect

The social or environmental aim of the social enterprise

to Corporate Social Responsibility

and The sustainable agenda

Social Enterprises need to

compete on a level playing field

for contracts which recognise the

added value they deliver.

The job is waking people up to their own self interest

Buying For Good

Housing Associations, Social Firms and Community Benefits in

ProcurementA Practical Guide

First Steps towards Community Benefits

• Is it legal?

• Check fit with the strategic objectives of GHA

• Check fit with Community Planning objectives

• Is CB ‘core aim’ of the contract

GHA’s Policy Framework

• Revised tender policy

• Agreed by the Board

• Pilot project

• 70:30 split Quality and

Community Benefit/Price

Quality & Community Benefit

• Company Profile 40%

• Method Statement30%

• Community Benefit 30%

We particularly want to address the objective of getting peopleback into work. The assessment criteria will be as follows:

The number of NEW jobs that will be createdthrough securing this contractThe number of unemployed people who gainemployment as a result of securing thiscontractThe number of people completing recognisedtraining courses as a result of securing thiscontract (please state which course/courses)The number of completing programmes tohelp increase job related skills as a result

TOTAL

Score sheet

Company A B C

Tender Price £1M £1.1m £970k

Price Only Ranking 2 3 1

Price Scores 97 88 100Quality Scores 81 84 75Combined Quality/ Price Scores70%/30% 85.8 84.8 82.5Ranking 1 2 3

Devanha Framework Agreement

60:40 quality/price split in assessing contractors.• Questionnaire assessment• An interview• A site visit

Questionnaire assessment (25%)

There were 30 questions in the questionnaire assessment, giving amaximum weighted score of 500. Of this 45 marks were directly related tothe ‘Devanha Train’ target of the creation of 150 training places. This is 9%of the total score for the questionnaire and 2.25% of the overall contractassessment.

Interview (25%)

The Devanha Train commitment was then assessed by a panel at interviewstage. The panel's judgement of the contractor’s commitment to DevanhaTrain had a maximum score of 15%. This was 3.75% of the overall contractassessment.

Site visit

The site visit dealt with quality issues other than Devanha Train, e.g. Healthand Safety.

In total, from a possible 100% score for quality and cost, the Devanha Trainelement accounted for a maximum 6% of the overall score.

Added value

From public investment

Increased value for money

Additionally- training, targeted

recruitment

Investment in local community

People centred

Barriers

Legal constraints

Cost

Entrenched practices

Perception of the social enterprise

sector

Next Steps

*Find out what already exists-

quick wins

*Build a Social Enterprise supply

base

*take a strategic look at how

Social Enterprises could help

you to deliver corporate

objectives

*Identify your barriers and let us

know!

• Community Benefit 30%

Web Sites

*Scottish Social Enterprise

Coalition

www.ssec.org.uk

*Social Firms Scotland

www.socialfirms.org.uk

*SenScot

www.senscot.net