Achieving Community Benefits through Social Procurement Dr Nicola Perkins Social Enterprise Officer Wales and West Housing
Aug 18, 2015
Achieving Community Benefits through Social Procurement
Dr Nicola Perkins
Social Enterprise Officer
Wales and West Housing
Why Wales & West Housing?
New project to embed the “social” into everything we
procure…
Bring more meaning benefit back
to our communities
Employability
support for
residents
Supporting / growing
social enterprise
Getting more
from our
contractorsOur approaches………
UK procurement is changing…..
Directive 2014/24/EU on Public Procurement
passed in European Parliament on 26th
Feb 2014
More SME friendly procurement practices
… still to be adopted by Wales
Article 46: Division into lots – more manageable
Article 48: Use of Prior Information Notices – improving tender readiness
Article 67: Award criteria – most economically advantageous tender – inclusion of
social and environmental factors in award
Article 68: Award criteria – life cycle costing – consideration of the financial,
environmental, and social costs accrued by the product or service across the whole of
its life
Typical Supply Chain:
Procuring Organisation
Sub – contractors (SMEs)
Contracts over £2 million require delivery of “Community Benefits” in a bid to gain
“Maximum value for the Welsh £”. Value Wales (WG) states:
“Community Benefits /Social value should be achieved in all contracts where
such benefits can be realised”
Prime Delivery Company
“Social enterprises are innovative, independent businesses that
exist to deliver a specific social and/or environmental mission.”
Social Enterprise
Create Jobs
Create an
affordable
alternative to an
existing service
Safeguard a
community facility
Improve Health and
Wellbeing of
individuals in the
community
Deliver skills
training for
employment / life
skills
Deliver a service
for the
community
Social Enterprise
Create Jobs
Create an
affordable
alternative to an
existing service
Safeguard a
community facility
Improve Health and
Wellbeing of
individuals in the
community
Deliver skills
training for
employment / life
skills
Delivery of a mission regardless of what activities
they choose to deliver….
Deliver a service
for the
community
Social Enterprise
Create Jobs
Create an
affordable
alternative to an
existing service
Safeguard a
community facility
Improve Health and
Wellbeing of
individuals in the
community
Deliver skills
training for
employment / life
skills
Deliver a service
for the
community
Delivery of a mission regardless of what activities
they choose to deliver….
Delivery of a mission regardless of what they say on
the tin….
Social Enterprise
Create an
affordable
alternative to an
existing service
FURNITURE
RECYCLING
Social Enterprise
Create Jobs
Create an
affordable
alternative to an
existing service
Deliver a service
for the
community
Safeguard a
community facility
Improve Health and
Wellbeing of
individuals in the
community
Deliver skills
training for
employment / life
skills
Delivery of a mission regardless of what they say on
the tin….
Delivery of a mission regardless of what they say on
the tin….
Social Enterprise
Safeguard a
community facility
SOLAR PANELS ON A COMMUNITY HALL
Social Enterprise
Create Jobs
Create an
affordable
alternative to an
existing service
Safeguard a
community facility
Improve Health and
Wellbeing of
individuals in the
community
Deliver skills
training for
employment / life
skills
Delivery of a mission regardless of what they say on
the tin….
Deliver a service
for the
community
Delivery of a mission regardless of what they say on
the tin….
Social Enterprise
Deliver skills
training for
employment / life
skills
Balanced with
sustainable jobs to
make the model work+
CATERINGMANUFACTURING
They exist from identification of a need at community level…
Which (if well managed) makes them responsive to change…
They can grow as big as the market / need allows...
Evolve to deliver a number of different business streams…
Whilst continuing to be mindful to their mission !!
What makes Social Enterprise
different from other SMEs?
Procuring Organisation
Sub – contractors (SMEs)
Prime Delivery Company
Supply Chains & Opportunities for
Social Enterprise:
Where are the opportunities for social enterprise inclusion?
Supply Chains & Opportunities for
Social Enterprise:
Procuring Organisation
Sub – contractors (SMEs)
Prime Delivery Company
SOCIAL ENTERPRISE
e.g. Catering, transport, product provision, use of a community building….
Supply Chains & Opportunities for
Social Enterprise:
Procuring Organisation
Sub – contractors (SMEs)
Prime Delivery Company SOCIAL ENTERPRISE
e.g. Large established social enterprise or a consortia / cooperative (depending on
contract size)
If social care is the primary mission of the enterprise then can apply:
Article 77: Reservation of health and social care contracts to be reserved for
competition by social enterprises…
Article 20: Reserved Contracts –for sheltered workshops and economic operators
whose main aim is the social and professional integration of disabled or
disadvantaged persons (at least 30% of employees should be disabled or
disadvantaged).
A little bit more
legislation….!
Supply Chains & Opportunities for
Social Enterprise:
Procuring Organisation
Sub – contractors (SMEs)
Prime Delivery Company
SOCIAL ENTERPRISE
e.g. Social enterprise creation as a way of creating jobs & services
Challenges & Opportunities
To find the right organisation to be a delivery partner;
- lack of knowledge of what is around – support agencies can help
- a group that is a good match (geographically) may not necessarily a social
enterprise right now – but could be!
- but if they are a social enterprise, they may not necessarily delivering
the required services right now…. but it may align well with their mission
- be open about the scope of what you want to achieve- ensure they fully
understand the opportunity
for commissioners:
Challenges & Opportunities
Strength in numbers;
- partnership working with other similar organisations
- development of consortia / cooperatives
for social enterprises:
Challenges & Opportunities
To develop a sustainable business model;
- this is where up front / open conversations make the difference
- could a service level agreement with reducing financial contributions from the
commissioner assist the enterprise to develop? (3-5 yrs)
- capital grant for equipment / asset transfer – social enterprises have asset locks
so if they cease to function equipment would need to be used by a similar organisation
for both:
Challenges & Opportunities
A challenge to generate sufficient organisational buy in
- to understand what is trying to be achieved through social enterprise
- to demonstrate the benefit and manage the risks
- to not fall back into procurement behaviours that present barriers for social
enterprises to tender for
- to not be afraid to challenge existing prime contractors to work harder in
their service delivery and seriously consider / or force them to work with social enterprise
within their supply chains
for commissioners:
Community Benefitsfrom utilising an existing social enterprise;
Sustaining /
creating local jobs
Provision of
community led
/focussed services
Better links with the
local community
Stimulation of
local economy
Strengthening /
resilience of local
communities
Community
Regeneration
Future-proofing
services