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Joe Irvin Chief Executive,

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1 Joe Irvin Chief Executive, NAVCA @JoeIrvinNAVCA

2 160,000 registered charities 600,000 below the radar groups 60% adults give to charity 25% of adults volunteer monthly

3 Source: UK Civil Society Almanac 2012 Projected fall in VCS public funding

4 £227bn - total public spending on procurement £11.2bn Voluntary sector contracts

5 A Beginner’s Guide to Commissioning NAVCA

6 Pathways Through the Maze NAVCA and NCVO

7 The Act requires public authorities to have regard to economic, social and environmental wellbeing ahead of procuring services…

8 ..and how, in conducting the process of procurement, they will act to secure that improvement.

9 “Relevant authorities” Govt departments Local authorities NHS Trusts CCGs Fire & rescue services Police Maintained schools and FE/HE Housing associations

10 Act applies to … Service contracts rather than goods Contracts above EU thresholds ‘Pre-procurement’ – i.e. what an authority must do prior to commencing a procurement exercise

11 Social value outcomes In contract specifications: Relevant and proportionate Specific, measurable and verifiable A clear part of the award criteria SV not defined in law. Government says it is: “…the additional benefit that can be created by procuring or commissioning goods and services, above and beyond the benefit of merely the goods and services themselves” Must also consider if consultation needed– but not a duty to consult. Govt assumes consultation “digital by default”


13 The Case of Birmingham BCC’s case social value is: Aligned with priorities in Leader’s policy statement : Tackling inequality and promoting social cohesion. A prosperous City built on an inclusive economy. Involving local people and communities. Underpinned by existing policies : Living Wage policy. B’ham Charter for Business Social Responsibility Buy Birmingham First Social Value Policy

14 Birmingham Charter for Business Social Responsibility Local employment Buy Birmingham First Partners in communities Good employer Green and sustainable Ethical procurement

15 Birmingham Charter in Action… Carillion central library contract : Included SV clause (apprenticeships, local employment, training). Wilmott Dixon: Maintenance c.60,000 council housing units – similar SV clause. Birmingham Energy Savers green deal contracts Environmental targets SMEs/small suppliers – supply chain Training/employment opportunities Health outcomes Engaging schools/Young People

16 BCC commissioners required to: 1.Communicate SV clearly to the marketplace 2.Examine service specifications for additional SV outcomes 3.Give examples of SV in specs. – specific, measurable, verifiable 4.Align with corporate aims, Leader’s Statement, key policies 5.Require tenderers to include SV Statement in submission: Additional SV outcomes they can achieve Kind of evidence they will be able to provide 6. Ensure accessibility/ inclusiveness in how ITTs are structured, publicised etc.

17 Oldham Social Value framework We are committed to, and we expect of suppliers: supporting the local economy, including through any sub-contracting; delivering at neighbourhood-level wherever appropriate; reducing demand for public services and including appropriate incentives in contracts, such as contract extension; supporting the community and voluntary sector through our suppliers and contracts; fostering positive relationships between and within different communities

18 What does this mean for VCS? 1.Can’t restricted contract to social enterprise/third sector. 2.VCS competitive advantage – but not monopoly on SV 3.Emphasis on: Articulating SV that is relevant to contract, clear and understandable Monitoring SV Developing evidence that is clear, easily conveyed and can demonstrate SV has been achieved

19 Evidence of impact Least developed part of the process. A ‘light touch’ regime: Nothing that adds to management costs Not likely that SROI will be favoured – but SROI is one foundation of appropriate evidence

20 What to do:  Review the messages you use to articulate and define the social value you create.  Are they clear, punchy, precise?  Are they:  RELEVANT?  APPROPRIATE?  SPECIFIC?  UNDERSTANDABLE?

21 Look for evidence from: Specific services Ways of working/delivering that are unique to you (your USPs) Particular interventions Impact and outcomes for specific groups of service-users Look for what distinguishes you from other providers – especially private sector.

22 Developing a social value strategy

23 We will need to work together to solve major problems LGA’s Graph of Doom

24 Joe Irvin Chief Executive, NAVCA @JoeIrvinNAVCA

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