This presentation was used during a workshop at the Doing Different Things Conference, that looked into the role of social enterprises, co-operatives and other Third Sector organisations in the delivery of social care and wellbeing services. The event was run by Welsh Government, Wales Co-operative Centre and Social Firms Wales.

1. Achieving Community
Benefits through Social
Procurement
Dr Nicola Perkins
Social Enterprise Officer
Wales and West Housing

2. Why Wales & West Housing?
New project to embed the “social” into everything we
procure…
Supporting / growing
social enterprise
Bring more meaning benefit back
to our communities
Employability
support for
residents
Getting more
from our
contractors
Our approaches………

3. UK procurement is changing…..
Directive 2014/24/EU on Public Procurement
passed in European Parliament on 26
th
Feb 2014
More SME friendly procurement practices
… still to be adopted by Wales
Article 46: Division into lots – more manageable
Use of Prior Information Notices

4. Typical Supply Chain:
Procuring Organisation
Prime Delivery Company
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”

5. Social Enterprise
“Social enterprises are innovative, independent businesses that
exist to deliver a specific social and/or environmental mission.”
Create Jobs
Create an affordable
alternative to an existing
service
Safeguard a community facility
Improve Health and Wellbeing of
individuals in the community
Deliver a service for the
community
Deliver skills training for
employment / life skills

6. Social Enterprise
Delivery of a mission regardless of what activities
they choose to deliver….
Create Jobs
Create an affordable
alternative to an existing
service
Safeguard a community facility
Improve Health and Wellbeing of
individuals in the community
Deliver a service for the
community
Deliver skills training for
employment / life skills

7. Social Enterprise
Delivery of a mission regardless of what activities
they choose to deliver….
Create Jobs
Create an affordable
alternative to an existing
service
Safeguard a community facility
Improve Health and Wellbeing of
individuals in the community
Deliver a service for the
community
Deliver skills training for
employment / life skills

8. Social Enterprise
Delivery of a mission regardless of what they say on
the tin….
Create an affordable
alternative to an existing
service
FURNITURE
RECYCLING

9. Social Enterprise
Delivery of a mission regardless of what they say on
the tin….
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

10. Social Enterprise
Delivery of a mission regardless of what they say on
the tin….
Safeguard a community facility
SOLAR PANELS ON A COMMUNITY HALL

11. Social Enterprise
Delivery of a mission regardless of what they say on
the tin….
Create Jobs
Create an affordable
alternative to an existing
service
Safeguard a community facility
Improve Health and Wellbeing of
individuals in the community
Deliver a service for the
community
Deliver skills training for
employment / life skills

12. Social Enterprise
Delivery of a mission regardless of what they say on
the tin….
Deliver skills training for
employment / life skills Balanced with sustainable jobs to
make the model work +
CATERING
MANUFACTURING

13. What makes Social Enterprise
different from other SMEs?
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…

14. Supply Chains & Opportunities for
Social Enterprise:
Procuring Organisation
Prime Delivery Company
Sub – contractors (SMEs)
Where are the opportunities for social enterprise inclusion?

15. Supply Chains & Opportunities for
Social Enterprise:
Procuring Organisation
Prime Delivery Company
Sub – contractors (SMEs)
SOCIAL ENTERPRISE
e.g. Catering, transport, product provision, use of a community building….

16. Supply Chains & Opportunities for
Social Enterprise:
Procuring Organisation
Prime Delivery Company SOCIAL ENTERPRISE
Sub – contractors (SMEs)
e.g. Large established social enterprise or a consortia / cooperative (depending on
contract size)

17. A little bit more
legislation….!
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).

18. Supply Chains & Opportunities for
Social Enterprise:
Procuring Organisation
Prime Delivery Company
Sub – contractors (SMEs)
SOCIAL ENTERPRISE
e.g. Social enterprise creation as a way of creating jobs & services

19. Challenges & Opportunities
for commissioners:
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

20. Challenges & Opportunities
for social enterprises:
Strength in numbers;
- partnership working with other similar organisations
- development of consortia / cooperatives

21. Challenges & Opportunities
for both:
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

22. Challenges & Opportunities
for commissioners:
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

23. Community Benefits
from 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