This document discusses using social value in procurement to achieve social and economic goals for the city of Liverpool. Social value includes creating local jobs, paying living wages, and supporting small and medium enterprises. The mayor's priorities are to build schools and homes, create jobs, and make the city greener. Examples are given of how procuring contracts could help meet these outcomes through apprenticeships, local hiring and subcontracting clauses. The workshop aims to discuss delivering social value through a structured procurement approach, changing culture, and developing new delivery models.
3. Legislation Driver
• Public Services (Social Value) Act 2012
Implemented January 2013
• Enhancements/Amendments??
4. Social Value in Summary
“Social Values” in the Act includes
hiring/creating jobs locally; paying a living
wage; linking to local apprenticeship and
employment schemes; training and up
skilling staff; collaborating with Third
Sector/community groups; supporting
SME‟s
6. Definition (working progress)
Liverpool Social Value
„ A community-focused benefit which adds to the
widely-defined wellbeing of the city‟s population
over and above the usual added value associated
with public sector contracts, one which embraces
all market sectors and directly changes the city‟s
approach and response to people and
communities.'
7. Mayor’s Outcomes
• Build 12 new schools
• Make Liverpool business and enterprise
friendly
• Create 20,000 local jobs
• Make the city greener, cleaner and
healthier
• Build 5,000 new homes
8. Mayoral Priority
Social Value
Procurement Examples to increase Social
Return on Investment
Build 12 new schools
Economic stimulus for local
jobs and business
Selecting / building in apprenticeship
clauses; encouraging local sub-contracting
Make Liverpool business &
enterprise friendly
Supporting SMEs
Supply chain development (spot buying);
SME friendly financial appraisal; multiplier
Create 20,000 jobs
Local job creation,
apprenticeships, training,
employment schemes
Social / local employment clauses in
contracts; “multiplier effect” of contractors
re-investing in local employees and subcontractors
Make the City greener, cleaner
and healthier
Economic stimulus for local
jobs and business
Efficiency of working with suppliers based
nearby; reduction of transportation /
deliveries etc.
Build 5,000 new homes
Economic stimulus for local
jobs and business
Jobs and skills charter / contract clauses in
new service and construction framework*
agreements / contracts > £1 million p.a. +
other voluntary agreements
9. Aspiration
Creating a social value city
• Growing the local economy
• Reducing the impact of public sector cuts
• Using skills, capacity and resources
differently
• Create local jobs
• Stimulate local procurement- local supply
chains
10. Delivering the Dream!
• Structured approach to Procurement and
commissioning
• Changing culture
• Contract management toolkit
• Reviewing systems and processes
• Smarter procurement -Market engagement
• Social Value – vehicle to drive innovator
11. Examples
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The „Friendly Economy‟ Model
„Spot buying‟ supply chain development
Reviewing contract management
Reviewing and making recommendations
e.g.; Standing Orders
12. Examples Cont
• New delivery models for mandatory
services
• Managed „brokering‟
• Developing the markets
• Clinical Commissioning Group
• Social Value cross sector „Think Tank‟
