Delivering Economic Benefits

1. Delivering Economic Benefits Through Collaborative Procurement

2. Introductions Audience: • Procurement • Service Commissioners • Lawyers • + • Economic Development and Regeneration who work in partnership with businesses, training providers and communities to make the conditions right for New businesses to start and grow sustainably Existing businesses to develop further and contribute to the local economy • While also Building the skills of local people to help build sustainable communities and meet employer needs 2

3. Making the case for Economic Benefits to be an integral part of contract delivery Councils are increasingly expected to do:- more with less But also to make the most of the wider responsibilities they now have for Generating economic growth in local communities

4. Drivers Internal:- • Best Value • Economic Well Being and other Duties External:- Leader commitment to increase apprentice numbers via London Councils 2010 Public Services (Social Value Act) 2012

5. Borough wide v West London wide Commissioning within each borough provides opportunity to generate economic and other sustainability and community benefits – Harrow Council has a Sustainable Procurement Policy in place Collaborative Procurement Case has been made and agreed by Leaders and Chief Execs of benefits of using Councils combined procurement power to achieve savings and increase efficiency but also this provides more opportunity to :-

6. Generate Economic Benefits to - • Create local jobs • Develop the local skills base • Develop and maintain a skilled work force in West London that enables long term economic success • i.e. in longer term develop local sustainability and reduce claims for housing and Council tax benefit, and other support and increase spend by those in sustainable jobs

7. WLA collaborative procurement and Apprenticeships, Employment and Skills Project Keen to ensure that the economic benefits where appropriate include the delivery of apprenticeships Apprentices are: Key to Government strategy to promote growth and rebalance the nation’s economy Seen as the ‘gold standard’ for work-based training 500,000 began apprenticeships in 2010-11

8. Apprenticeships, Employment and Skills Development (A,E&S) I full Apprenticeship = Work placement positions for a total of 200 days (includes work experience) = Taster placements of a total 100 days = 1 job start – (can only be claimed after 6 months in work) = I graduate placement for a minimum of 6 months full time. = Support for pre apprenticeship to the value of £20k per year to enable positive local recruitment = Appropriate workforce development/education engagement negotiated on an individual contract basis

9. 1.Persistent myths to debunk EU Procurement rules prevent social clauses being drafted into contracts – There are two types of clauses that can be written in to open up A,E&S. Contract performance conditions and Social Conditions. ‘Buying Social’ 2010 EU guidance explains social clauses relevant to what the council is buying can be included in contracts

10. 2.Persistent Myths Councils may not examine the track record of prospective bidders in the area – This can be done through the pre-qualification questionnaire, specifically where this helps demonstrate capability to perform the contract

11. 3.Persistent Myths ‘Social’ contract award criteria are not allowed. Guidance allows social award criteria to be applied as long as the requirements have been written into contract specifications. This allows would be contractors’ proposals for delivering A,E&S to be considered when deciding which tender is the most ‘economically advantageous’ from a council perspective

12. 4. Persistent Myths Including apprenticeships, employment and skills outputs and outcomes – will increase delivery costs Depends how this is assessed in each contract Short term – costs may rise Whole life costing – employing apprentices can be more cost effective than employing pre-skilled staff, leading to lower overall training and recruitment and retention costs

13. New myth? Public Services Social Value Act 2012 – Barrier as new and not yet tested but:- • Requires all public bodies to consider how the services they commission and procure might improve the economic, social and environmental well being of the area • The Act complements existing procurement legislation does not replace it

14. Suggestions for Efficient Working across departments and across west London for collaborative procurement • Make best use of each others areas of expertise – commissioning leads need to share service review information to enable Econ Dev/regen officers to understand future sector skill and employment needs, constraints and opportunities • To enable Econ Deve/regen to ensure A,E&S ‘asks’ are realistic yet challenging • Procurement and Legal need to forewarn of issues, and statutory process that can be solved together

15. Ways Forward • Find Champions – senior officers and elected members who are motivated and passionate about achieving economic benefits through procurement • Develop and implement council policy that helps this to happen as Harrow has done • Lead by example in collaborative procurement – e.g. make sure A,E&S are a strong element of the, Leisure and Libraries, Home Care and Parking Contracts.