The Procurement Toolkit Good Practice Guides Version Date: December 2012

33

Delivering Social Value through Procurement

Introduction
The Public Services (Social Value) Act 2012 places a statutory duty on authorities to consider in their procurement and commissioning processes: a) how what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area, and b) how, in conducting the process of procurement, it might act with a view to securing that improvement. This guide is to aid procurement officers and commissioners in identifying how contracts may be constructed to deliver improved social value. The guidance in this document must also be considered in the context of the Contract Procedure Rules and other guides in the toolkit.

Social Value In Wakefield

Wakefield Council is committed to fulfilling its duty under the Social Value Act as well as maximising the social value and impact of all its actions and resources. Our procurement and commissioning processes seek not only to maximise Value For Money in terms of taxpayer spending and outcomes for customers but also seek to: Benefit local people and organisations, including developing the third sector and SMEs in our district and encouraging greater involvement of local people, businesses and groups in civic life and public service. Encourage innovative approaches to social, environmental, health and economic issues in our district. Encourage solutions which benefit and engage communities and our most vulnerable residents. underrepresented

Deliver sustainable solutions, benefiting our communities beyond the length of a contract. Improve job opportunities and skills in the district.

Social Value in Procurement and Commissioning

The Act applies only to services contract. However, Wakefield Council has for many years considered social, economic and environmental issues in works and supply contracts. Therefore, as far as possible, consideration should be given to addressing social value in all contracts where it can be evidenced that it is relevant to the subject matter of the contract.

Page 1 of 5

The Procurement Toolkit Good Practice Guides Version Date: December 2012

33

Delivering Social Value through Procurement

Social value covers economic value, the physical environment, life chances, employment and skills, health and wellbeing, equality and more. Potential suppliers and contractors should be encouraged to identify the full range of added social value benefits that their proposals will bring to the district and its residents, and these should be set out in any business cases, specifications (where relevant to the contract) and supporting documentation. The Appendix identifies areas and themes that should be considered in preparing for any procurement process. The list is not exclusive and you may identify other elements that are appropriate for inclusion in a contract. Bidders proposals and submissions may deliver or contribute to improving social value in more than one thematic area. Suppliers and contractors should be encouraged via outcome requirements to identify the full range of social value benefits that their proposal will bring to the district and its residents. Whilst the Act does not expressly address evaluation and scoring criteria, officers should ensure that the evaluation score and weighting is proportionate to the degree that social value is of relevance to the contract.

The need to consider consultation

The Act requires the Council to consider whether to consult on social value issues prior to undertaking a procurement or commissioning exercise. As a general rule, if the procurement or commissioning exercise will have material social value impacts in it, and the view of stakeholders can help shape the specification or statement of outcome requirements, then it may be worth consulting with stakeholders. The level or nature of consultation is not defined, but it should be proportionate to the nature of the contract. Completing the risk log at the start of the process will help identify any social value elements that may need to be considered in the contract. For example, if the Council needs to tender for laptops, is there a need to consult? You may consider the answer is no due to the laptops not being manufactured in Wakefield, they are a commodity item and there is little (direct) social value that the contact can deliver for the district. However, if the Council is undertaking a commissioning exercise to provide services for disadvantaged youths, then you may well consider that consultation should be undertaken with stakeholders in respect of the specification and/or the service outcomes.

Page 2 of 5

The Procurement Toolkit Good Practice Guides Version Date: December 2012

33

Delivering Social Value through Procurement

In all cases, it is strongly recommended that you record in the risk log that you considered whether or not to consult with stakeholders along with your reasons.

Appendix
The following is intended to help identify what social value a procurement or commission could include, where relevant to the nature of the contract. Should you be uncertain as to the relevance of any element, contact the Strategic Procurement Team for advice. Strengthening Communities 1. Protecting or improving the local environment Enhancing the quality of the public realm Enhancing the quality of the natural environment Enhancing the quality of the built environment

2. Tackling crime and Anti Social Behaviour Supporting victims of crime Rehabilitation of offenders Supporting community efforts to tackle crime & anti-social behaviour Reducing opportunities for crime

3. Improving our most deprived Priority Neighbourhoods Benefits can be delivered for residents of one or more Priority Neighbourhoods

4. Creating educational and learning opportunities Primary Secondary Post 16 Life skills

5. Improving travel and communication for communities transport infrastructure sustainable transport community transport

Page 3 of 5

The Procurement Toolkit Good Practice Guides Version Date: December 2012

33

Delivering Social Value through Procurement

improving social networking and gathering

Growing the economy 6. Creating employment opportunities

full time job creation (permanent or temporary) part time job creation (permanent or temporary)

7. Creating training opportunities

basic skills Apprenticeships higher skills

8. Encouraging or supporting new business start ups

9. Diversifying the local economy

developing green / low carbon businesses developing knowledge based businesses

10. Promoting ethical business practices

commitment to employee rights / involvement commitment to customer rights/ involvement ethical procurement (fair trade) environmentally sustainable procurement

Protecting our vulnerable people 11. Reducing poverty living wages meeting living wage levels employee benefits tackling poverty related issues child poverty debt homelessness fuel poverty food poverty

12. Providing opportunities for underrepresented groups

older people

Page 4 of 5

The Procurement Toolkit Good Practice Guides Version Date: December 2012

33

Delivering Social Value through Procurement

young people ethnic minorities disabled people / health issues people in care ex-offenders and those at risk of offending

13. Supporting families

tackling family breakdown improving parenting

14. Tackling lifestyle and health related issues

alcohol misuse drug misuse obesity mental health

Strengthening Civil Society 15. Encouraging participation & democratic involvement

developing community leaders supporting community engagement supporting democratic participation

16. Strengthening the third sector

supporting businesses with the third sector building third sector skills building third sector leadership building third sector infrastructure (assets / IT systems etc.) encouraging new voluntary / community groups Increasing volunteering encouraging social enterprise

17. Strengthening relations between communities

supporting community cohesion supporting community pride

Social value is also underpinned by sustainability: any proposal should also identify: How long-term will the benefits of the proposal be? How will the benefits continue to achieved after the conclusion of the proposed contract?

Page 5 of 5