Legal overview & social value act in practice

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An overview of the social value act. Presented by Julie Prior (Assistant Head of Law & Governance at Sunderland City Council) at #socialvalueNE on Friday 26 April 2013.

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Legal overview & social value act in practice

  1. 1. Social Value EventSunderland Software CentreFriday 26thApril
  2. 2. Sunderland City Council : Doing Business with the CouncilWhat is the Public Services (SocialValue) Act 2012 (and What is it Not?)Julie Prior – Law and Governance
  3. 3. Sunderland City Council : Doing Business with the CouncilPublic Services (Social Value) Act 2012• Private members bill initiated by Chris White MP• Received broad cross party support• Became law on 8th March 2012• Came fully into force on 31 January 2013• Applies to contracting authorities when procuring public servicecontractsWhat is the Act?
  4. 4. Sunderland City Council : Doing Business with the Council• Defined in Regulation 3 Public ContractRegulations 2006• Includes:-− local authorities (and companies they control)− central government bodies− fire and police authorities− NHS trusts− schools and academiesWhat is a Contracting Authority?
  5. 5. Sunderland City Council : Doing Business with the Council• A written contract or framework agreement forconsideration (usually money) under which aAuthority engages a person to provide services• mix of goods and services - covered if value ofservices more than goods• mix of works and services - covered if works areincidental to the servicesWhat is a Public Service Contract?(Defined in Public Contracts (Regulations) 2006)
  6. 6. Sunderland City Council : Doing Business with the Council• The Authority must consider-− how what is proposed to be procured might improvethe economic, social and environmental well-beingof the relevant area, and− how, in conducting the process of procurement, itmight act to secure that improvement.What new obligations are theAuthority subject to under the Act?
  7. 7. Sunderland City Council : Doing Business with the Council• Before starting a procurement process, e.g− before publishing OJEU− before publishing an advert seeking offer− before contacting any person to seek an offer− before responding to an unsolicited offer or− before entering into a contract/framework• This is because once the procurement process hascommenced the opportunity is missedWhen does duty apply?
  8. 8. Sunderland City Council : Doing Business with the Council• This is limited to− matters relevant to what is proposed to be procuredonly;− to the extent which it is proportionate in all thecircumstances to take those matters into account.Obligation to consider how Authoritymight act to secure improvement
  9. 9. Sunderland City Council : Doing Business with the Council• The Authority must consider whether toundertake any consultation as to what social,economic and environmental improvement canbe secured through the procurement process• Duty to consider consultation not a duty toconsultDuty to Consult?
  10. 10. Sunderland City Council : Doing Business with the Council“One of the key provisions of the Act is to ask publicbodies to consider consultation when seeking to definewhat social value could be in the contracts they aredesigning. I hope all public bodies will see this as aduty to consult and civil society organisationsshould lobby hard to ensure that public bodies usethe expertise and knowledge of the third sector whenputting the Bill into action.” Chris White MPDuty to Consult?
  11. 11. Sunderland City Council : Doing Business with the Council• All contracting authorities will have to considerthe relevance of social, economic andenvironmental requirements when a contractfor services is commissioned• It opens door for consultation and engagementwith the relevant sectorWhat does it mean?
  12. 12. Sunderland City Council : Doing Business with the Council1. A requirement to consider these things in relation tocontracts for supplies or works2. A requirement to implement social, environmental oreconomic requirements into every service contract3. A requirement to consult in every case4. An opportunity to override EU treaty principles andlegislationWhat is it not?
  13. 13. Sunderland City Council : Doing Business with the Council• Require authorities to treat Bidders in a non-discriminatory way− cannot discriminate in favour of local providers− cannot require a local office at the time ofbidding− but can include contract conditions to encourageuse of local labour and supply chain incentivesEU Treaty Principles
  14. 14. Sunderland City Council : Doing Business with the Council"The Bill constitutes a good idea that has beengiven a few teeth. Whether those teeth are sharpenough, or the jaw that contains them is strongenough, we do not yet know. However, the Bill isa good start. We should see it as part of anongoing process as opposed to an end in itself.“Lord AddingtonLiberal Democrat Deputy Chief WhipWhat will be the impact of theAct?
  15. 15. Sunderland City Council : Doing Business with the CouncilProcurement and Social ValuePaul Davies, Head of Corporate Assurance and Procurementpaul.davies@sunderland.gov.uk
  16. 16. Sunderland City Council : Doing Business with the Council• 3rdParty Spend• Arrangements in Place• Examples in Practice• Future
  17. 17. Third Party Spend by LocationSunderland City Council : Doing Business with the Council3rdParty Spend - 2012/13
  18. 18. Sunderland City Council : Doing Business with the Council• Policy position (quality, price, social value)• Supplier Charter• Supplier Engagement Group• Dedicated Market Engagement Team• Thresholds (all quotes via Corporate Procurement)Arrangements in Place
  19. 19. Sunderland City Council : Doing Business with the Council• Buy Sunderland First• Scoping Reports• Supplier engagement events• Streamlined PQQ documentation / process• Links with Business Investment TeamArrangements in Place
  20. 20. Sunderland City Council : Doing Business with the CouncilRequired bidders to submit a Method Statement (scored) relating tohow they would target recruitment (inc. unemployed / NEET’s)Outcomes:Total of 341 additional staff employed186 previously were unemployed for 6 months+ / NEETCare and Support
  21. 21. Sunderland City Council : Doing Business with the CouncilRequired bidders to submit a Social & Economic Benefit Plan(scored) which includes:• Use of local subcontractors & supply chain opportunities for SME’s• Recruitment of NEET’s and long term unemployed• Employ or provide work based training opportunities and apprenticeships“The Contractor is required to notify every vacancy, including those with sub-contractors, to recruitment agencies as agreed in writing from time to time by theCouncil. The Contractor shall use all reasonable endeavours to recruit newemployees from these recruitment agencies.“The Contractor shall use all reasonable endeavours to provide supply chainopportunities to small businesses within the Employer’s area.”New Wear Bridge
  22. 22. Sunderland City Council : Doing Business with the Council• Social Value considered for all contract opportunities over £5,000(proportionate) – not just economic• Engagement with representative bodies at scoping stage to identifyopportunities / discuss approach / barriers• Increased use of Social Value benefits, terms & conditions andevaluation criteria• Opportunities to secure Social Value covered as part of ongoingrelationshipFuture (Sunderland)
  23. 23. Sunderland City Council : Doing Business with the CouncilAny Questions?

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