Does Social Value Conflict with Value for Money? Henry Swan – Head of Procurement Kent County Council

What we will Consider What is Social Value What do the Procurement Rules say about Social Value Incorporating Social Value into tenders Is Social Value, value for money

What is Social Value ‘a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits to society and the economy, whilst minimising damage to the environment’. The Sustainable Procurement Task Force, and is widely used in Scotland, Wales and England.

Examples of Social Value creating skills and training opportunities (e.g. apprenticeships or on the job training); creating employment opportunities for the long-term unemployed or NEETs (those not in education, employment or training); offering work placements to school children and young adults; providing career advice and information for young people on specific careers, such as construction, architecture or engineering; offering curriculum support to schools, with contractors sharing knowledge and expertise about their discipline; providing additional opportunities for individuals or groups facing greater social or economic barriers. creating supply chain opportunities for SMEs and social enterprises; creating opportunities to develop third sector organisations. improving market diversity; encouraging community engagement

Real Life Examples Bank deliver training on financial management in schools as part of winning a council’s banking contract Construction framework guarantees apprenticeships YLF Young Lives Foundation (Rights & Advocacy) employed 2 care leavers Increasing volunteering Local fundraising

Public Services (Social Value) Act 2012 (3)The authority must consider— (a) how what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area, and how, in conducting the process of procurement, it might act with a view to securing that improvement. This applies above OJEU threshold £172,514

Public Contracts Regulations 2015 Contract award criteria 67.(1) Contracting authorities shall base the award of public contracts on the most economically advantageous tender assessed from the point of view of the contracting authority. (2) That tender shall be identified on the basis of the price or cost, using a cost-effectiveness approach, such as life-cycle costing in accordance with regulation 68, and may include the best price- quality ratio, which shall be assessed on the basis of criteria, such as qualitative, environmental and/or social aspects, linked to the subject- matter of the public contract in question.

(3) Such criteria may comprise, for example— (a) quality, including technical merit, aesthetic and functional characteristics, accessibility, design for all users, social, environmental and innovative characteristics and trading and its conditions; (6) Award criteria shall not have the effect of conferring an unrestricted freedom of choice on the contracting authority. Advance disclosure: make the evaluation criteria known to bidders at the first opportunity, including sub-criteria and evaluation methodology

Incorporating Social Value into tenders

Evaluation of Social Value Must be fair and transparent If you intend to use Social Value in evaluation criteria to avoid risk of challenge you must clearly set out what you are going to evaluate and how you are going to measure: e.g. For each apprentice you employ you will be awarded a point in evaluation If you are prepared to risk challenge (it will probably be a small risk) you could be more general

Value for Money Social Value Portal Example

Value for Money What do you want? Aligned to your aims Supporting Kent Business Apprenticeships Encouraging the third sector Improving educational attainment Universities?