Cllr Joy Allen, LGA Improvement and Innovation Board Member

and Portfolio Holder for Transformation, Durham County Council

How are councils achieving social value

through their commercial activity?

Durham County Council

• 518,000 residents

• 219,000 households

• We cover 223,260 hectares

• Largest council in North East

• Seventh largest council nationally by population

• £1.4 billion organisation

• 8,500 employees

• £500M procurement spend

• 64% North East spend and 55% SME spend

• Cabinet Office Award – Social Value Leadership

Transformation Programme

Commercial Projects – New HQ & SES

What is Social Value?

5

Public Services (Social Value) Act 2012 – No formal definition of Social Value

“An Act to require public authorities to have regard to economic, social and

environmental well-being in connection with public services contracts; and for

connected purposes”

Increasingly, organisations are considering their activities holistically, taking

account of the wider economic, social and environmental effects of their

actions.

Social Value serves as an umbrella term for these broader effects, and

organisations which make a conscious effort to ensure that these effects are

positive can be seen as adding social value by contributing to the long-term

wellbeing and resilience of individuals, communities and society in

general.

Why is Social Value important?• It matters because our organisation is a public body

• The reason we exist is to serve the community, and the wider public good

• We have a legal requirement to consider social value opportunities in our contracts

• The Local Government Act 2000 reminds us that fundamentally, the objective of any

local authority should be:

“The promotion or improvement of the economic, social and environmental

well-being of their area”

• If we don’t give due regard to the impact of our contracts on our local economies, on

our society, or on the environment, we are failing in our basic duty as public authorities

• Need suppliers and partners to support us to achieve our objectives and outcomes!

“Social Value is a necessity”

£675.95

£580.83

£527.20 £525.03

£504.28

£465.49

£447.01£453.46

£400

£450

£500

£550

£600

£650

£700

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

33% Reduction in Annual 3rd party

spend = Essential to maximise the

value of every £ we spend

Social Value Challenges?

The Act requires certain public authorities at the pre-procurement phase of procuring services to consider

how what is being procured might improve the economic, social and environmental well-being of an

area and how the authority might secure that improvement in the procurement process itself

• Act is limited in scope – Applicable to Services only?

• Act is applicable only above OJEU thresholds £181,302

• Act only contains a duty to consider only

• No consequence of not considering other than lost opportunity

• Social Value definition?

• Supplier lack of understanding – What is Social Value?

• Legal uncertainty of application

• Resource availability – Capacity, Knowledge and Skills

• Contract management follow-up

• Benefits realisation measurement

Social Value as a “Movement”

http://socialvalueportal.com/national-toms

Clarity & Measurement in £sTheme Outcome Question Name (Short) Question (Long) Units Factor Values

Economy: Skills and Employment

Delivering local employmentLocal people employed

Local people employed on the contract (full time annual equivalent). Please refer to the definition of Local in the Tender Documents.

no. 1£23,783

% local people employed % local people employed on contract % 1 £0

Improving skills for local people

Meaningful work placementNumber of weeks in aggregate spent on meaningful work placements (only those of 1 week or over) or on a Pre-employment course on the project

no. weeks 1 £800

Training opportunitiesNumber of training opportunities created or sustained (BTEC, City of Guilds, NVQ, HNC & Apprenticeships), Levels 2,3 or 4 (please specify how many at each level)

no. people 1 £1,946

Number of people supported into workNumber of hours dedicated to support people into work (e.g. CV advice, mock interviews, careers guidance)

hrs 1 £20

Opportunities for disadvantaged people

Long term unemployed hiredNumber of employees taken on who are long term unemployed (defined as people with continuous periods of unemployment extending for a year or longer)

no. people 1 £11,939

NEETs hiredNumber of employees taken on who are not in employment, education, or training (NEET) and 18-24 yr. old

no. people 1 £14,438

Rehabilitating offenders hired Number of employees taken on who are rehabilitating offenders no. people 1 £34,840

Supporting diversity Diversity training Do you provide diversity training for your team and subcontractors Y/N 1 £0

Economy: Promoting Local and Responsible Businesses

Opportunities for Local Companies

Support for local SMEs and social enterprisesSupport for local SMEs and social enterprises, e.g. through expert business advice and guidance or 'meet the buyer events' for local businesses

no. of events 1 £104

Local supply chain spendTotal amount (£) spent in local supply chain through the contract (excluding Social Enterprises spend -see question13)

£ 1 £1.111

Opportunities for Local SMEs and Social Enterprises

Local SME spend Total amount (£) spent with local SMEs through the contract £ 0 £1

Social enterprises spend £ spent with Social Enterprises through the contract £ 0.25 £1

Society: Creating Stronger, Healthier Communities

CVOs employed in the supply chain

CVOs advice and guidance Providing business advice and guidance to CVOs hrs 1 £26

Third sectors provider spend (supply chain) £ spent with third sector providers within your supply chain £ 1 £1

Volunteering in the Community Volunteering to local community No hours volunteering time provided by staff to local Community hrs 1 £15

An effective and resilient third sector Donations to local community Charitable Fundraising/Donations: communities / local £ 1 £1

Working with schools Curriculum engagement Contribution to education (Curriculum Engagement) including school visits hrs 1 £15

Environment: Protecting and Improving Our Environment

Better places to live Sustainable Communities supportSupport to build more sustainable communities (e.g. by assisting with management of energy costs or energy efficiency improvements to homes)

£ 1 £1

Efficient use of resources Waste to land fill reduction Reduction against baseline of waste to land fill tonnes 0 £86

Improving the climate and local environment CO2 savings Savings in CO2 emissions on contract (specify how these are to be achieved). tCO2e 0 £18

Sustainable ProcurementSustainable Procurement policy You have or are developing a Sustainable Procurement Policy. Please upload your policy here. Y/N 1 £0

ISO 14001 sub-contractors No. of sub-contractors with ISO 14001 no. 1 £0

Promoting Social Innovation

Other measures that deliver social value

Other measures (hrs)Other measures (hrs) - please describe any additional initiatives that you would like to make and hrs to be committed

hrs 1 £15

Other measures (£)Other measures (£) - please describe any additional initiatives that you would like to make and £ to be invested

£ 1 £1

Social Value Projects• NEPO Piloting TOMS

• Collaborative working with SVP

• Durham – New Head Quarters

• Durham – New Bowburn School

• NEPO – Electricity

• NEPO – Temporary Agency Staff

• NEPO – Construction Framework

• Gateshead – Training

• Sunderland – Transport Corridor

• Stockton – CCTV systems

• South Tyneside – Live at Home

Q & A