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Public Service Opportunity Social Enterprise is Your Business Public Service Opportunity Social Enterprise is Your Business Peter Ramsden Frez ltd Creative Commissioning The BEST Procurement Development Partnership is part funded by the European Social Fund under the EQUAL Community Initiative
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Creative Commissioning

Jun 25, 2015

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presentation by peter ramsden at best procurement Leicester 5 december 07
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Page 1: Creative Commissioning

Public Service OpportunitySocial Enterprise is Your BusinessPublic Service OpportunitySocial Enterprise is Your Business

Peter Ramsden Frez ltd Creative Commissioning

The BEST Procurement Development Partnership is part funded by the European Social Fund under the EQUAL Community Initiative

Page 2: Creative Commissioning

Peckham Health Centre

Page 3: Creative Commissioning

Peckham Health Centre: back to the future

• In 1935, two pioneering doctors opened the Peckham Health Centre was a bold departure in the medical field in the 1930s,

• concentrating on a preventative, rather than a curative approach to health.

• housed their centre in a purpose built Modern building• Centred on a huge swimming pool, • People could buy wholemeal bread and fresh vegetables• Closed in 1950 because its emphasis on prevention did not

fit into the dominant paradigm of the new NHS• Now converted into loft style flats

Page 4: Creative Commissioning

Many misconceptions

• ‘you can’t do this under EU rules’• ‘You have to have an open tender process’• ‘Social enterprises are not eligible’• ‘You have to go to OJEU (£3.6m for works and

£145000 for services (£95000 for central govt)

• We need to find ways of creating the best services for the best society and work with the rules to achieve this

Page 5: Creative Commissioning

Influences: 2007 Research for National Employment Panel Business Commission Race equality in the

workplace

• Employment criteria being used by Sheffield for its entire housing renewal programme

• Northern Ireland using procurement to encourage equal opps between religious groups

• No need to use ‘hard’ affirmative action as practiced in the USA

• Canada had best practice

Page 6: Creative Commissioning

Influences: looking at how spending can achieve benefits

• NEF’s Local Money Flows 3 tool showed that spending money locally could multiply the economic and social benefits

• Plugging the Leaks – simple model showing to communities how money flows in and out

• Social Return on Investment demonstrating value and proving that complex problems imposed costs on different levels of governance and departments even in the same organisation

Page 7: Creative Commissioning

Influences: Local Labour Clauses

• Local labour found to be illegal but perfectly okay to use 15% long term unemployed employment

• Case study found in St Herblain near Nantes• Entire ERDF construction process being used

for this purpose• European Commission rules that social clauses

are legitimate

Page 8: Creative Commissioning

Influences: Emra Inequality in the East Midlands Study 2007

Half of the good practices found in this study were social enterprise delivery models, more had to be left out.

• Genesis• Hill Holt Wood• TumTum housing• Sherwood energy village• Bulwell Toy Library

Page 9: Creative Commissioning

Policy is designed for spending not for saving

• ‘there is no readily recognisable mechanism for one public body to achieve recognition from HM treasury that creates savings in another part of the public sector’

Page 10: Creative Commissioning

Trends in public sector procurement

• Larger and longer contracts• Increasing complexity of bidding systems • new eprocurement systems that encourage

higher bars to qualification• Poorly drawn up specifications• Cost of abortive bids• Over onerous ITTs (often designed for big

contracts and assuming huge workforces)

Page 11: Creative Commissioning

Public Sector Powers

• RDAs can ‘ do anything which it considers expedient for its purposes, or for purposes incidental thereto’

• Local authorities: anything which they consider is likely to achieve the promotion or improvement of the economic, social or environmental wellbeing of the area, or part of the area.’

• NHS Trusts and PCTs ‘anything necessary or expedient

Source Anthony Collins ‘Social Enterprise and the Public Sector

Page 12: Creative Commissioning

Social enterprises are as diverse as the private sector

• Selling something already bought (but from other suppliers) – improving busienss skills, ensuring a level playing field – SME friendly concordat

• selling something different from what the client currently buys

• Selling something the public sector does not buy

Page 13: Creative Commissioning

Different ways of structuring the purchaser – supplier relationship• Contracting• Granting• Joint ventures• Creating new enterprises• Equity shares

Page 14: Creative Commissioning

No one model of Social Enterprise added value

• Social innovation in the delivery of public services e.g. ECT in kerbside recycling, FRC in employability, Sunderland Home care

• Creation of new services e.g. SIED Equal DP embedded enterprise advisers in refugee communities

• User participation and control e.g. Principia• Worker control, Suma wholefoods• Achieving multiple objectives e.g. Hill Holt Wood• Fair trade – Divine Chocolate, Coffee• Value for money – no profit taking by shareholders