Appendix A

Social Value Policy

1.0 BACKGROUND

1.1 On the 31st January 2013 the Public Services (Social Value) Act 2012 became fully operational. The Social Value Policy described here, which will be reviewed in one year’s time, sets out the key principles and actions whereby the Council endeavours to embed practical and effective commissioning for social value in every aspect of its procurement, commencing (as the legislation requires) at the pre-procurement stage.

2.0 SCOPE

2.1 While the Act only requires relevant authorities to consider social value in service contracts (and goods or works contracts where there is a service element) above a prescribed financial threshold, the Council’s implementation of the duties in the Act will be as wide as practicable and the Council will seek to secure social value outcomes from its procurement activities:

(i) with all suppliers and contractors,

(ii) for services, works and goods, and

(iii) for all contract values.

2.2 The Council will also consider other delivery models, including social enterprise and mutual models, where such arrangements may deliver greater social value.

3.0 WHAT WE MEAN BY SOCIAL VALUE

3.1 The Act states:

“If the relevant authority proposes to procure or make arrangements for procuring the provision of services, or the provision of services together with the purchase or hire of goods or the carrying out of works…. The authority must consider how what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area and, in conducting the process of procurement how it might act with a view to securing that improvement”. It must also “consider whether to undertake any consultations as to matters to be considered” under that process.

3.2 For the purposes of this policy we refer to this improvement of wellbeing as social value. In order to implement this we seek measurable, verifiable social value outcomes that:

(i) are relevant to the purpose of the services, goods or works,

(ii) can legitimately be included in contract specifications and

(iii) contribute to achieving the Council’s priorities (as described in the Council Plan 2012 to 2015 and Council budget).

3.3 Priorities of Social Value policies include:

(i) Local Employment

Create employment and skills and training opportunities for local people especially in target areas.

(ii) Supporting Local Businesses

Take account of the social and economic impacts of buying locally during procurement and contracting, particularly through local supply chains, thereby reducing unemployment and raising the skill level of the local workforce.

(iii) Voluntary, Community and Social Enterprise Sector Development

Promoting social inclusion by targeting contract opportunities at voluntary and community groups, social enterprises, other civil society organisations and encouraging community involvement.

(iv) Green and Sustainable

Commit to protecting the environment, minimising waste and energy consumption and using other resources efficiently. These commitments will also apply to their supply chain.

(v) Ethical Procurement

Encouraging corporate social responsibility amongst suppliers and contractors.

(vii) Public Health

Contributing to health improvement campaigns.

3.4 However this list is not exhaustive and each case must be considered on its merits.

4.0 THE POLICY CONTEXT

4.1 The strategic context for social value outcomes derives from the Council Plan:

“Our ambition is to create a Borough that is more confident, more vibrant and more successful than ever before. A place where people prosper and grow, where they feel happy, safe and healthy. A place where people can see that our drive, our integrity and our imagination have delivered genuine improvement and exceptional value for money. A place that every single one of us is proud of. This is our vision”.

We’re on with it.

BIG PLANS FOR OUR PLACES AND OPEN SPACES

BIG PLANS FOR AN OUTSTANDING BOROUGH

BIG PLANS FOR THE CARE WE PROVIDE

BIG PLANS FOR KEEPING OUR COMMUNITY SAFE

BIG PLANS FOR THE HEALTH OF OUR PEOPLE

BIG PLANS FOR THE YOUNG PEOPLE OF OUR BOROUGH

BIG PLANS FOR HELPING OUR COMMUNITIES PROSPER

BIG PLANS FOR GREAT EXPERIENCES

5.0 IMPLEMENTATION

5.1 The Council will embed a clear and unambiguous message about our intention to secure social value through our procurement every time we communicate with the marketplace.

5.2 Procurement plans will be used to identify potential contracts where social value benefits will be applied.

5.3 Prior to the commencement of each and every procurement exercise, service specifications and/or existing service designs will be interrogated to examine:

a) Why the service/ goods/ works is being procured – is it still relevant and what are we trying to achieve?

b) Undertake service-user, community or marketplace consultation or research to redefine or confirm needs and create opportunities for delivering social value?

c) The additional social value outcomes we should be seeking to derive from the procurement.

5.4 Upon commencement of each and every procurement exercise, the Council will:

a) Where appropriate, ask bidders to detail and demonstrate the social value outcomes and measures that they can deliver when providing the service/ goods/ works. Where appropriate, include an appropriate weighting in the tender evaluation model to assess the social value offer submitted by bidders.

b) Where appropriate, include social benefit contract clauses in the contract terms and conditions and highlight these to all bidders.

5.5 Upon completion of each and every procurement exercise, the Council will:

a) Establish and define key performance indicators (KPIs) for measuring social benefits

b) Establish recording and monitoring systems with suppliers and contractors to ensure social benefits are realised.

6.0 REPORTING ON SOCIAL VALUE

6.1 The Council will:

a) Report on the social value outcomes achieved through its procurement activities annually, ensuring that this report helps all stakeholders understand the Council’s purposes and achievements in seeking social value. Suitable KPIs for reporting will be developed and tested (e.g. the proportion of contracts that have social value outcomes included).

b) Work with partners, to develop practical and proportionate methods to enable suppliers and contractors to evidence the social value outcomes they have achieved and to ensure that these methods are cost-effective for both suppliers and contractors and the Council as purchaser.

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