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Social Value and DevolutionPanel Discussion
National Social Value Conference’17
Peter Wilding Head of Strategy Greater Manchester Combined Authority Lorraine Cox Director STAR Procurement
Rachael Morgan Procurement Manager West Midlands Combined AuthorityHaydn Brown Head of Procurement Strategy Birmingham City Council
Roger Forsdyke MD for Construction Southern Counties Willmott Dixon Moderated by Melanie Mills
Social Sector Engagement DirectorBig Society Capital
Deep Dive: Social Value and the Devolution Agenda
- Greater Manchester
• Peter Wilding – Head of Strategy GMCA
• Lorraine Cox – Director STAR Procurement
Greater Manchester Strategy: background• Greater Manchester Strategy is the overarching strategy that has set the strategic framework for
policy development across Greater Manchester since 2009.
• Sets out Greater Manchester’s approach to delivering the interlinked objectives of growing the economy and reforming public services
• Formally owned by the GMCA and the GM LEP, but buy in from partner organisations, private businesses, and the voluntary, community and social enterprise sector – as well as national government – is critical if it is to deliver its ambitions
• Decision taken in summer 2016 to refresh due to:
• the substantial devolution that is now underway;
• the impending Mayoral election and development of manifestos; and
• the changing economic and political climate, particularly the vote to leave the EU;
• “Big conversation” held, with online and face-to-face consultation, in winter 2016/17 to get views of residents on what they want from the strategy
• GMCA formal launch – 27th October 2017 – Mayor Andy Burnham
Our new strategic approach: from vision to outcomes
Next Steps:
• Develop the GMS Implementation Plan. This will include:o working with Treasurers on the financial requirements to deliver GMS up to 2020.o continuing to develop the performance dashboard for launch in April 2018 as a “State
of Greater Manchester" report; ando working with policy leads, and portfolio Chief Executives / Leaders to review portfolio
actions and interdependencies, and develop a 2-year Implementation Plan.
• Develop two key underpinning strategies:o Greater Manchester Spatial Framework; ando Greater Manchester Investment Strategy.
• Social Value Policy 2014:o Refresh; ando Reflect 2017 GM Strategy.o Measurement of SV across GM underpinning the Outcomes Framework
What’s different?
GM Procurement ‘Vehicle for
Change’
GM History
Multi-agency
Devo-NHS
Integration
Ambitious Targets
50%+ STAR/GM
SV Beyond 20%
Why is it working?
• Early Engagement:
• Mandate
• Focus on Shared Outcomes
• Service Re-Design
• Innovation from the Market/Users
Procurement Innovation
• Co-Commission:
• All Partners
• Consortia Bidding
• Route to Market (DPS/FPS)
• Evaluation/SV Strategy
• Outcomes
Procurement Delivery
Where’s the evidence? GM Learning Disability & Autism
Challenges?
* 22
* £300m pa (5+2)
* New way
* Buy-in (all)
* Co-Creation
* Lotting Strategy
Opportunities?
* Mandate
* Manage Market
* Pricing
* Bid-Once
* Service Users
* ENGAGEMENT!
Outcomes?
*
* FPS
* Providers (160/100/77)
* Evaluation
* SV Policy
* SV mini comp
* Training in SV
Contact Details:
• Lorraine Cox – Director STAR Procurement• (t): 07817 882169
• (e): [email protected]
• (w): www.star-procurement.gov.uk ( ) @STARProcurement
• Peter Wilding – Head of Strategy GMCA• (t): 07989 166556
• (e): [email protected]
• (w): www.greatermanchester-ca.gov.uk ( )@greatermcr
Greater Manchester Strategy can be found at: https://www.greatermanchester-ca.gov.uk/ourpeopleourplace
Social Value and the Devolution Agenda
Rachael Morgan,
Procurement Manager
Who are WMCA?
We are 18 local authorities and four Local Enterprise Partnerships (LEPs) working
together to move powers from Whitehall to the West Midlands and its locally elected
politicians, who know this region best.
Leadership of the WMCA comes from the Mayor and the leaders of the seven
constituent local authorities, which have full voting rights. The leadership also includes the
chairs of the Local Enterprise Partnerships (LEPs) which are business-led organisations
that help build relationships between businesses and local authorities. Non-
constituent authorities, which include the LEPs and ten local councils from across the wider West Midlands region, have reduced voting rights but play a crucial role at board
level, helping to inform policy and drive forward the WMCA agenda.
Building a healthier,
happier, better connected
and more prosperous
West Midlands
The Strategic Economic Plan
Our Social Value Journey
• The WMCA Social Value Taskforce Group (SVTG) was formed in 2016.
• Our purpose: A collaborative approach to Social Value to Procurement within the West Midlands
• Representation from across the West Midlands
• With the help of The Social Value Portal we identified what Social Value meant to the West Midlands and common Themes, Outputs and Measures (TOMS) were identified.
• Consultation was key!
• September 2017: The WMCA Social Value Policy was approved
SVTF Group Formed in 2016
Social Value Meaning
Deprivation Analysis / TOMs
Consultation with key stakeholders
Policy approved by WMCA Boards
Policy Themes and Strategic Fit
Benefits of our Policy
• A collaborative and consistent approach
• Creation skills and employment
• A clear message to suppliers and communities
• More opportunities for Small and Medium-sized Enterprises (SMEs) and Voluntary, Community and Social Enterprises (VCSEs)
• Addressing the local needs of citizens.
• Promoting long term investment into our communities
• Improving life chances for all
What does the WMCA Social Value Policy mean to you?
Application in the Procurement Process Value Process Potential Outcomes and Results
Under £50,000 A light touch social value toolkit Innovation around one or two issues such as community volunteering or linking up with a local school. Suggested weighting 5%
£50,000 – EU Thresholds*
Application Themes, Outcomes and Measures (TOMs) included within the procurement process
Businesses will be expected to respond to the range of specific opportunities contained within the TOM Matrix. Suggested weighting: 5-10%
EU Thresholds and above*
Procurement Lead Officers will guide specifications and tender documents to ensure that considerations are made at commissioning stage and that TOMs are included within the tender process, ensuring that the evaluation scores and weightings are clearly set out
Businesses will be expected to respond fully to the TOMs matrix and commit to project specific deliverables that will be included within ongoing KPIs. Suggested weighting 15-20%
* For current EU thresholds please refer to https://www.ojeu.eu/thresholds.aspx
WMCA Social Value Targets Opportunities Year 1
01/04/17 –
31/03/18
Year 2
01/04/18 –
31/03/19
Year 3
01/04/19 –
31/03/2020
Total over 3
Years
New and Sustained Apprenticeships as a
result of the contract(s)
45 95 190 330
New opportunities for Not in Education,
Employment or Training (NEETS)
30 60 120 210
New and sustained training opportunities as
a result of the contract(s)
35 70 140 245
Jobs for long term unemployed 25 55 110 190
Voluntary Hours donated to community 21000 42000 84,000 147000
Expert hours provided for SMEs 900 1800 3,600 6300
Young offenders supported back to work 5 10 20 35
Tonnes of Carbon Dioxide saved 1250 2500 5,000 8750
Workforce placements weeks 525 1050 2100 3675
Social Value Add Figure £5m-
£10m
£10m-£20m £20m–£40m £35m-£70m
How can we make Social Value work
for you?
Next Steps • Application of policy to Procurement
Projects
• Toolkit for implementation of the policy
• Provide a portal to:
o Provide single point of contact
o Celebrate success
o Reach out to local communities for support
o Best practice / ideas sharing
o Realise collaboration opportunities
• Continue to engage with suppliers and communities
Thank you for Listening
If you would like to receive a copy of the WMCA Social Value Policy, please
email:
Enabling Social Value through Collaboration and Innovation
Haydn BrownHead of Procurement Strategy & Development14th November 2017
Local Level - Challenges facing the Council
A smaller workforce –working smarter
Increased commissioning skills –how to be an intelligent client
Agile and flexible Innovative and entrepreneurial
Achieving more with lessLeaders who role model the new
- empowering decisions at all levels
Improved digital andIT capabilities
Working in partnershipand learning from others
Empowering citizens,preventing need
New models of working being considered – Engagement Hub
Improve the capabilities of the local supply markets including through social value commitments
Improved capability and training for staff
Our Council of the Future will be
Smaller and more strategic
The role of the Council will be less about direct service delivery and more about supporting a wider range of partnerships and providers, including social enterprises and the contribution of voluntary effort and the community.
Partnership based
The new role of the council will be more about empowering bottom up action and brokering partnerships between communities and organisations that contribute to the future of the city.
Devolution Deal
Devolution Deal 1• Investment programme of £36.5M p/a funding allocation over 30 years,
which is being used to create a £8bn ten year investment plan, to get the West Midlands moving and drive local growth.
• A new, directly elected Mayor for the West Midlands • Commissioning implications and opportunities
• Infrastructure• Housing• From tactical to strategic - joint commissioning plan
• For more information see summary
Devolution Deal 2 (being negotiated) • Includes talking to the government about a housing deal – more new homes
LGA response to the INDUSTRIAL STRATEGY COMMISSION’S FINAL REPORTThe LGA are saying “Devolving powers to councils will unleash the full potential of our local economies and radically transform public services by targeting money where its most needed and making the most of each place’s unique assets”.
Birmingham Business Charter - Local Support
Buy Local:• Support the local economy by choosing suppliers close to the point of service delivery where
possible.• Use Find it in Birmingham as the primary method of sourcing suppliers for contracts in
Birmingham, increasing the accessibility of opportunities to local businesses throughout the supply chain.
• Encourage their suppliers to endorse the principle of Buy Local throughout their supply chains.
• Where possible, commit to purchasing from businesses on the Find it in Birmingham website and from social enterprises and small businesses.
Partners in Communities:• Build capacity by supporting community organisations with resources and expertise in areas
with the greatest need, for example mentoring and working with youth organisations and services.
• Provide support to third sector organisations and work with third sector organisations to deliver services and contracts.
• Make accessible all sub-contracting opportunities to a diverse supply base including the third sector and local suppliers and provide mentoring and support to assist these organisations to tender for and deliver these supply opportunities where necessary.
• Pay suppliers no later than the terms stated in the primary contract if contracted to the Council, otherwise adopt a similar policy such as the Prompt Payment Code.
Local Opportunities
Since its implementation in 2010 membership of FindItInBirmingham has grown to over 32,000 organisations of which over 40% are Birmingham based and over 65% are in the West Midlands.
Over £3.6 billion pounds worth of public and private sector adverts have been posted on the website since its launch
Planned Procurement Activity Reports are published on FIIB to notify the market of forthcoming opportunities.
We publish adverts over £10k which is considerably below the threshold for Contracts Finder at £25k.
Monthly breakfast meetings are held for suppliers which regularly have an attendance of over 100 delegates on a range of subject matters which are helpful to local SMEs.
Planned events for the future cover the city’s infrastructure works in November 2017 and a Combined Authority Event for HS2 in February 2018.
How to Tender and Win Business presentation: https://www.birmingham.gov.uk/downloads/file/8029/how_to_tender_and_win_business
Commissioning Strategy 2017+ The Direction of Travel
THEME OBJECTIVE FROM TO
9.1 Delivery of outcomes and
value for money
Cashable savings from service delivery Engineering Value through prevention, innovation
and demand management
9.2 Increasing social value
locally
Suppliers offering short-term social
value commitments
Targeted matching to needs and sustainable
relationships
9.3 Improving commissioning
with partners
A linear, tiered provision, having
fewer, larger providers
More responsive provision, either System-led or
through self-organised, local providers
9.4 Enabling Citizens through
solution design &
delivery
Delivering services to people Greater Citizen Engagement with co-production &
personalisation
9.5 Improving
commercialism and
income growth
Recovering costs within business units Generating a surplus within business units
9.6 Appropriate governance
and assurance
Process heavy governance through
Council’s Standing Orders &
Procurement Governance
Governance that ensures probity but is seen more
as an enabler to achieve local and regional
outcomes
9.7 Enhancing capability and
capacity to deliver
outcomes
Re-alignment of skills due to staff
reductions, managing the financial
pressures and the change agenda
A flexible workforce with the breadth of skills to
deliver the Council of the Future as part of the
West Midlands Engine
OVERALL STRATEGY A Commissioning Strategy for
Birmingham City Council
The potential for a Joint Commissioning Strategy
city wide with partners
Social Value in the Commissioning Strategy• Implement the updated Social Value Policy, Living Wage Policy and Birmingham
Business Charter for Social Responsibility
• Ensuring specific social value outcomes are included in commissioning activity
• Maximise the social value achieved in the region
• Promote the BBC4SR brand to increase awareness, support and pride of the joint commitment to social value
• To increase the number of organisations voluntarily signed up to the BBC4SR
• Determine if a sustainable model can be achieved to meet SV needs and maximise impact locally without the reliance on public sector funding
• Continue to push this agenda forward to enable greater achievements, leaner systems, and more unified approaches
https://www.birmingham.gov.uk/downloads/download/1656/commissioning_strategy_2017
Commissioning Strategy - alignment to LGA and EU Innovation Reports
LGA Report: “focusing on the provision of practical help and guidance for councils both in the procurement of innovative solutions and in procuring innovatively”.
It supports the European Commission consultation guidance on “Public Procurement of Innovation”. Their suggested approach supports modern, digital and professional procurement by:• Encouraging the use of innovative, green, and social criteria
• Improving access to markets for SMEs
• Supporting cooperation among public authorities
Task & Finish Group - Phase 1Team: Nigel Kletz (Sponsor BCC), 7 LA’s, Cabinet Office, LGA, CCS, Innovate UK, Ferrovial Services and Independent Chair
Project remit:• Consider the challenges in the procurement of innovative solutions • Consider risks and opportunities • Consider intellectual property issues • Identify new skills and development needed• Sources of funding, expertise and best practice• Communication and capacity building• Focus on practical recommendations, include selection criteria
https://www.local.gov.uk/encouraging-innovation-local-government-procurement
Innovation in Social Value. 2015 review of the SV Act:• No mention of tools, e.g. pre-commercial procurement to develop SV enhancing solutions. • No mention of resources available e.g. Innovate UK support/finance programmes. • Challenges:
• Contracting Authorities: How to build on the more flexible procurement approaches already brought about by social value considerations to embed innovative cultures more deeply.
• Suppliers: Does it help to be told where to target social value commitments, or does it constrain your SV offer? Are the varying C/A approaches to Social Value confusing and is there a need for greater consistency?
Public Procurement of Innovation
Corporate Procurement Services
@bhamcitycouncil
/birminghamcitycouncil
https://www.finditinbirmingham.com/feature/charter