Oldham Council Social Value Procurement Framework

Background Info

Oldham Council, in keeping with their aim of “delivering a Co-operative Borough” has developed a social value procurement framework. This framework details social, economic and environmental outcomes against which tenders will be evaluated and contracts monitored. This will allow the council to formally and consistently achieve social value in commissioning and procurement.

What did you do?

Oldham Council created a social value framework in order to formally and consistently generate social value through commissioning, procurement and monitoring of goods and services. Applying this framework to the £232 million spent annually on contracting will make “a major contribution to delivering a Co-operative Borough” through generation of social value.

The Social Value Procurement Framework is focused on 4 themes with corresponding evaluation outcomes;

• Jobs, growth, and productivity;

– Outcome 1: More local people in work.

– Outcome 2: A local workforce which is fairly paid and positively supported by employers.

– Outcome 3: Thriving local businesses.

– Outcome 4: Responsible businesses that do their bit for Oldham.
• Resilient communities and a strong voluntary sector;

– Outcome 5: An effective and resilient third sector.

– Outcome 6: Individuals and communities enabled and supported to help themselves and each other.
• Prevention and demand management;

– Outcome 7: Acute problems are avoided and costs are reduced by investing in prevention.
• A clean and protected physical environment;

– Outcome 8: We are protecting our physical environment and contributing to climate change reduction.
During each procurement exercise, appropriate outcomes from the framework will be identified against which bids will be scored. Every procurement exercise must include at least one of the outcomes to ensure maximisation of social value generation.

Suppliers must demonstrate their ability to deliver against these outcomes and responses of the winning bidder will be integrated into the finalised contract. This will allow more effective monitoring of contract delivery.

In addition to the social value procurement framework, a set of additional guiding principles has been created. These principles will be taken into account during the commissioning process and when evaluating the performance and practices of Oldham Council and its suppliers. These guiding principles are:
• 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 opportunities for suppliers who effectively reduce demand;

• Supporting the community and voluntary sector through our suppliers and contracts;

• Fostering positive relationships between and within different communities (both geographical communities, such as Limeside or Shaw, and communities of interest, such as people in a particular age group or people of a particular faith);

• Robust enforcement in cases where suppliers fail to deliver agreed outcomes;

– Working positively with suppliers to deliver the maximum possible social value together (e.g. we might offer a supplier discounted use of our buildings in order to enable district-based delivery of services across the borough);

– Paying our suppliers promptly;

– Engaging our staff and working constructively with trades unions;

– Endorsing / promoting suppliers who engage successfully and positively with our social value approach to procurement;

– Upholding and maintaining our ISO14001 environmental management system accreditation;

– 100% compliance with environmental legislation and health and safety legislation.

What did you learn (things to avoid, things to do etc)

Flexibility of the framework, with bidders assessed for social value only on relevant sections of the procurement framework. This allows organisations to tailor bids to emphasise areas of relevant strengths.

Links – Documents

http://committees.oldham.gov.uk/documents/s49871/Overview%20scrutiny%20social%20value%20version%208.pdf

Contact (email address etc)

Oldham Council Procurement Team

Level 8

Civic Centre

West Street

Oldham, OL1 1UG

Tel: 0161 770 4887

Email: ce.procurement@oldham.gov.uk

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