Delivering Social Value Through Effective...

Delivering Social Value Through

Effective Frameworks

Victoria Brambini

Managing Director

David Boyer, Warrington Borough Council

Phil Wright, Balfour Beatty

John Simons, Scape Group

Alison Ramsey, Scape Procure

National Social Value Conference

Delivering Social Value through Effective Frameworks

David Boyer

Assistant Director – Transport & Operations

Warrington Borough Council

At the Heart of the Northern Powerhouse

Warrington – a real success storyPerformance• High wage - low welfare• Highest employment rate in UK• Largest commuter catchment

outside M25• Best Performing ‘City’ in the

North West• Third highest business growth in

UK • Second best Quality of Life in UK• Start-up ‘Hotspot’• Second highest 16/17 yr olds in

Education or Training• Home to the largest cluster of

Nuclear sector businesses in UK

Ingredients of Success• Location & connectivity• Skills and people• Lifestyle• Clustering• An administration and culture

that welcomes growth • Business friendly• Former New Town• Warrington delivers

Objectives / Challenges

• Delivery of Council Objectives– Protect the most vulnerable

– Grow a strong economy

– Build strong, resilient and active communities

– Create a place to be proud of

• Areas of Deprivation / Closing the Gap

• Austerity

• Capital Rich / Revenue Poor

• Missing New Town Infrastructure

• Very accessible / but Congested

Solution

• Grow to survive

• Ambitious growth proposals

• Council prepared to borrow money – Fund projects

– Provide revenue for capital / revenue areas

• Maximise success at funding opportunities

• Make sure we deliver

• Build objectives into procurement strategies

• Frameworks – delivery & social value

Public Services (Social Value Act) 2012

• The Act places a legal obligation on local authorities to consider the social good that could come from the procurement of services prior to embarking on the procurement process.

• Where the authority deems that social value can be derived it requires that consultation with potentially interested parties should be undertaken prior to a procurement.

• Only required for services contracts above OJEU threshold.

• Review of the Social Value Act in 2015 recommends the measures should be extended to works and goods contracts.

Objectives in delivering social value

Warrington is committed to :

• Supporting the local economy including SME’s, voluntary and social enterprise sector

• Delivering at door stop level

• Clauses in contracts to demonstrate both social value and FVM

• Transparent and proportionate processes and contracts

• Contract Management to measure social value outcomes

• Paying suppliers promptly

Social Value will not override value for money objectives but will enhance the “offer” by providing tangible and measureable outcomes.

Why the Scape Framework?

Major Procurement / Delivery Advantages

• Early Contract involvement – better design / VfM

• Reduced project / procurement timescales

• Reduced project costs – particularly procurement

• More surety of project costs / outturns

• More certainty on delivery

Appointed Balfour Beatty through the Scape Framework

• Social Value not initially on radar as advantage soon was

Birchwood Pinch Point Project

• £5.4m Project

• Delivered on time and to budget

• Massive business and resident positive feedback

• Balfour Beatty assistant with using social value as a measurement tool

• The success was recognised with a Social Value Award from the Civil Engineering Contractors Association

• The results were…

Social value outcomes

• This has helped Warrington evidence to the LEP that the money was invested wisely and locally

Long-term social value outcomes

• Warrington have a significant programme of infrastructure valued at over £260m – e.g. M62 Junction 8, Western Link, West Rail Station, Waste Transfer Station, Warrington East Phase 3

• Programme of work provides opportunity to develop careers for local people, not just employment on a project by project basis, ensuring sustainable employment

• Enables partnering with local schools and colleges, upskilling the industry and helping to address the industry skills gap

• Generates economic growth• Secure pipelines of work support investment in,

and development of, the supply chain

Thank You

David Boyer

Assistant Director – Transport & Operations

01925 442530

dboyer@warrington.gov.uk

Phil Wright

Framework Director

Social Value –

The Contractor’s View

Old Ideas – New Approach

Social

Value

Corporate Social

Responsibility

Community

Benefits

Corporate

Responsibility

Social

Sustainability

Social Value is a way of thinking about how

scarce resources are allocated and used. It

involves looking beyond the price of each

individual contract and looking at what the

collective benefit to a community is when a public

body chooses to award a contract

Social value asks the question:

‘If £1 is spent on the delivery of services, can

that same £1 be used, to also produce a wider

benefit to the community?’

Social Enterprise UK

A Change Of Mind-Set

Social Outcomes

▪ Improved wellbeing

▪ Enhanced environment

▪ Good member of society

▪ Better business

Business Outcomes▪ A good member of society - Giving

something back

▪ A good employer - Attract and retain the

best staff

▪ Better understanding - What do

customers really want?

▪ Provide true added value, leading to

repeat business

▪ Enhance reputation

Long-Term Commitments

and Partnerships

Over 10 years working

with the Prince’s TrustMembers of the

5% Club

Armed Forces

Corporate Covenant

Frameworks

Social Value -

Providing Effective Frameworks

John Simons, Head of Procurement & Audit

Alison Ramsey, Frameworks Coordinator

What is a framework?

▪Long term agreement - Duration usually 4 years, maybe longer

▪Single or Multiple Contracting Authorities

▪Single or Multiple economic operators

▪Multiple operators – Direct award or mini competition▪Single operator – Direct Award/Early Engagement

▪Single or Multiple lots

Frameworks

▪Provides speed to market and flexibility

▪Build long term relationships with suppliers

▪Greater opportunity for collaboration with all stakeholders

▪Suppliers can plan – (Social Value)

▪Supply chain stability

▪Drives economies of scale

▪Demonstrates Value for Money

▪Certainty

Benefit of Frameworks

Restricted Procedure – Two Stage (PQQ/ITT)

Tender Process

▪ Quality – Sub-Criteria (50%)

▪ Social Value = 20%

▪ Collaboration = 40%

▪ Efficiency and Effectiveness (Method of Operation) = 40%

Allocation of Marking Criteria:

▪ Price = 40%

▪ Quality = 50%

▪ Interview =10%

Information Issued to Bidders:

Tender Process

▪Copy of Scape’s Social Value policy

▪Social Value Guidance document

▪Clear instructions on Social Value in ITT

Demonstrate:

Evaluation/Assessment

▪ Social Value is embedded into their method of operation

▪ Continual improvement processes - 360 degree thinking

Evidence:▪ Social Value is embedded into the organisation

▪ Social Value policy is aligned to SV legislation

▪ Performance Management

▪ Social Value outcomes

Interview: ▪ Social Value presentation

The procurement process is key to delivering Social Value Outcomes which are evidenced through:

▪Key Performance Indicators (KPIs)

▪Themes Outcomes Measures (TOMs)

▪Project Commitments

▪Framework Commitments

Delivering Social Value

Outcomes

Performance Management

Key Performance Indicators (KPIs):

Performance Management

▪ Time and Cost

▪ Local Labour

▪ Local Spend

▪ SME Engagement

▪ SME Spend

▪ Micro Business Engagement

▪ Micro Business Spend

▪ Health and Safety

▪ Defects

▪ Waste Diversion

▪ Fair Payment

▪ Client Satisfaction

▪ Supply Chain Satisfaction

▪ Considerate Constructor Scheme

▪ Commitments

▪ Employment and Skills Plan

Performance Management

TOMs

(Themes, Outcomes and Measures)

Theme Outcome Measures Units Value

Growth and jobs

Promote local business

Healthy communities

Greener and cleaner

More local people in work

Fair pay

A resilient third sector

Vulnerable people better

supported

Lower waste and littering

Reduced carbon emissions

No. young offenders employed

No. voluntary hours

Spend in local supply chain

Reduced CO2e

No. people

No. hours

£ spent

tCo2e

£34,000/per

£13.57/hr

Local spend

£30/tCo2e

Total Social Value = Sum (Measures * Value)

Celebrating Success

Social Value