1. www.nepoportal.org
NEPO & Social Value
Diane NielsenDiane Nielsen
Deputy Director, NEPODeputy Director, NEPO

2. 2
Who / What is NEPO ?
Established in 1976 as a
“purchasing” organisation
In early 2011…

re-branded

new business model

new priorities

new governance
 retrained staff

3. 3
Local Government Spending
• £3bn spent by local
authorities in the NE
region in 2011/12 (on goods
& services)
• £1.83bn (61%) to NE
businesses
• £1bn (55%) to NE SMEs,
Social Enterprises or Third
Sector

4. 4
Local Government spend in the NE
Middlesbrough
3%
Gateshead
8%
Newcastle
28%
NorthTyneside
3%
Northumberland
12%
SouthTyneside
5%
Stockton
6%
Sunderland
9%
Darlington
3%
Durham
18%
Hartlepool
2%
RedcarCleveland
3%
How the regions £1.83bn spend is apportioned across the NE…

5. 5
SOCIAL VALUE ACT 2012
From January 2013 -
requires public
authorities to consider
how the procurement of
a service may improve
the social, economic &
environmental well-
being of an area.
5

6. 6
Changing Landscape…
“… local authorities and other big commissioners should ensure
the contract requirements they put in place are not too onerous
for smaller social enterprises to fulfil. Requiring three years' of
accounts or a £2m turnover, for example, could rule out new
social enterprises that might otherwise be able to use the
benefits of the contract they win in the local economy…
... There are numerous hurdles within the current procurement
process which really restrict social enterprises…
Unless we really upskill SMEs [small and medium
enterprises] we will have the big boys coming in
and the small ones being squeezed out."
Guardian, 7 Nov 2012Guardian, 7 Nov 2012

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NEPO’s Social Value Principles
Influence the design of procurements
Work with potential suppliers
Reduce hurdles / complexities
Be specific about “added value” or “social
requirements”
- “Outcomes” not “Outputs”
Live contracts - work collaboratively with suppliers
NEPO′s role is to help make sustainable savings by
encouraging authorities to buy collectively…

8. 8
Things to consider by “buyers”…
Appropriate turnover & insurance requirements
Min. requirements on contracts below EU threshold
(£173,934)
no or limited use of PQQs
Divide contracts into ‘lots’
Community Right to Challenge considerations
Develop & shape new markets
Engagement with NE supply base
early dialogue with potential deliverers of services
support for suppliers

9. 9
How do you communicate what your social enterprise is
- how it works, its governance, its impact?
 You might have a fabulous social purpose, but how do you
demonstrate that?
 It can be through SROI or more personalised case studies –
really it’s a range of info that tells your story.
 Research Council / regional Objectives
For smaller social enterprises - develop partnerships…
 identify partners to join forces with & play to your own
strengths
 pre-bidding “informal” arrangements already discussed / in
place in principle that can be formalised as and when required
 is becoming a more common approach; sometimes stipulated
within contracts
Things to consider by “suppliers”…

10. 10
Social Value in the NE Region

Proactive approaches to the Act:
 Middlesbrough:
 Whole Life Costing model
 Newcastle:
 Flexible Framework
 Living Wage
 North Tyneside:
 New Procurement Strategy

Reinforces approaches to ‘sustainable
procurement’ considerations

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Durham County Council
The council was flagged up byThe council was flagged up by Social Enterprise UKSocial Enterprise UK last yearlast year
for its best practice in mapping & engaging with all socialfor its best practice in mapping & engaging with all social
enterprises in the area with a view to modernising itsenterprises in the area with a view to modernising its
commissioning approach.commissioning approach.
"Sometimes social enterprises need to change their mindset and realise
they might not be able to go for contracts on their own. But getting them to
bid together can be difficult… we've worked with them… and seen their
bids improve. We do try to put social clauses into every contract now…
"Talk to us, read our policies, understand our strategies. Some social
enterprises, like Acumen, have engaged in active dialogue with us to learn
about what we want.
"There can sometimes be the impression that we should 'gift' work to social
enterprises… but a sustainable wealth creation is only achieved by having
a mixed economy and trying to ensure all sectors are in a balanced
position. This is why we do a lot of work to help social enterprises become
contract-ready."

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www.nepoportal.org
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enquiries@nepo.org
Where can you find out more?Where can you find out more?