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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
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
