1. Social Value in Procurement 21 st January 2016 Delivering Social Value in Harder Times

2. Introduction About echelon Scoping Developing the Tender Pricing considerations Procurement model considerations Cost and Quality evaluation Locking the offer Measuring performance Questions?

3. About echelon Procurement - £4.0 bn services procured to date Review Process – process built around full stakeholder engagement Bespoke – developing specific models built around each client’s needs Savings – £400m+ of direct savings Innovative – development of new delivery models Award Winning – multiple awards from sector Social Value – working with hact and Trowers to develop SV toolkit

4. Scoping Define Social Value requirements for project Engagement of stakeholders during stage Soft market test to ensure viability Use of hact tools (e.g. Community Insight) Consideration of Tenant’s requirements Align with your profile/aspirations Ensure you select best procurement route Tip – allow enough time in procurement timetable

5. Areas for Consideration Training Academy Employment opportunities (targeted) Supporting Residents back to work Apprenticeships Local supply chain Use of SMEs Support Social Enterprises Engagement with schools/colleges/agencies Community events

6. Developing the Document Clear definition of Social Value in ITT Set the scene for bidders - data What’s the approach? Route 1 - this is what we want – deliver it Route 2 – tell us what you can/will do? More prescriptive = easier to measure harder but differentiate Ensure granular cost model (more later) Consideration – prescriptive vs. open-ended?

7. Example - Definition

8. Example – Term Brief

9. Pricing Understanding of costs attached to offer Direct Overhead? Levy? Central Office Overhead? Consideration of how you want cost presented Ensure clarity within pricing model Recommend granularity for evaluation purposes

10. Procurement Process Allocate proportionate marks within evaluation process Open/Restricted – need to define offer as no interaction CD – allows development and ‘honing’ of offer Use of specific dialogue session on CD

11. Evaluation - Quality Clearly defined evaluation criteria Weight score appropriate to importance Potential to pass/fail on minimum requirements Measurement of additionality Define evaluation panel to bidders Ensure evaluation panel equipped Key Consideration – how do you evaluate ‘additionality’?

12. Evaluation – Quality Example

13. Evaluation - Cost Bottom line evaluation or line by line evaluation Extract Social Value cost within process? Ensure bidders have followed instructions Will largely be driven by choice of commercial model Consideration – bottom line or extracted costs (this is a key topic of discussion with working group)

14. ‘Locking’ the Offer Two strands to the delivery of Social Value Strand 1 – your stated requirements Strand 2 – the Service provider’s offer (additionality) Develop ‘Promises’ document and append to contract Utilise mobilisation period to review and ensure all stakeholders understand Measure!

15. Measuring Performance – Delivery Develop specific KPI to measure performance Could be ‘soft’ or ‘hard’ measure Options: Overall performance against target Individual measures/targets Option to link to variable profit and/or develop as a ‘drop-dead’ KPI Annualise and reset

16. Example

17. Measuring Outcomes Potential to use Wellbeing Value Calculator as part of assessment? Ongoing measurement of input versus output costs:

18. Questions Mathew Baxter – Managing Director E-Mail: mathew@echelonconsultancy.co.ukmathew@echelonconsultancy.co.uk Tel: 07989 325887