The West Midlands Procurement Framework for Jobs and Skills

1. The West Midlands Procurement Framework for Jobs and Skills Strategic Supply Chain Group 9 December 2010 Mark Cook Anthony Collins Solicitors John Lee West Midlands Economic Inclusion Panel

2. The Scale of the Challenge The regional output gap has increased from £10 billion to £15 billion. The West Midlands has: The fourth highest International Labour Organisation unemployment rate of any English region, at 8.7%, with 233,000 people out of work; 157,600 people claiming Jobseekers Allowance (JSA), 27,000 fewer than the peak in Oct 09 but 61,500 more than in May 08 (pre-recession); 46,195 Young People claiming JSA, compared to 31,000 in 2008, and the second highest youth claimant count rate of the English regions at 8.9%; an employment rate dropping from 71.3% to 69.4% in the 3 years to Sep 2010 (compared to a national (English) average of 71.2%) with 2,453,000 people in employment. the second highest proportion of people with no formal skills qualifications (behind the North East). 2,556,000 workforce jobs (June 2010), down 128,000 on June 2008. ONS Labour Market Statistics 17 Nov 2010

3. Harnessing Public Sector Buying Power UK: £220 Billion in 2009-10 Region: Circa £16-20 Billion Goal: 10% of contracts (£1.6b) include Jobs and Skills requirements Assumption: 2-4 opportunities secured per £1 million of spend Outcome: Access to an additional 3,200 to 6,400 jobs every year The potential was ten-fold It remains significant

4. Three ‘Tactical’ Approaches to Jobs and Skills

5. Contract clauses specifying jobs and skills requirements are: Routinely consideredfor their relevance to all stages of the commissioning and procurement process; Central to decision making foreach and every procurement exercise undertaken; Routinely monitored and measured (impact and penetration). The Strategic Approach to Jobs and Skills

6. Strategic and flexible Approach to Jobs and Skills Contract Clauses The Strategic Approach to Jobs and Skills Clauses Voluntary Agreements Jobs & Skills Charters

7. Procurement Framework Documents The Summary Guide The Main Guide The Toolkit for Stakeholders

8. The Toolkit for Stakeholders - getting started Detailed Legal Guidance Model Jobs and Skills Charter Model Voluntary Agreement Model Clause Templates Model Documents for each stage of the Procurement Process Local Case Studies The ‘Employer Offer’ Self Assessment Tool for Contractors

9. Formal Launch Event 8 March 2010 • Trudi Elliott • Mark Pearce • Stephen Hughes • ‘New Street: New Start’ • 100+ Delegates • 24 endorsements by July

10. Embedding the Procurement Framework Project

11. Nationally: DWP Cabinet Office Efficiency and Reform Group Local Government Association National Improvement and Efficiency Partnership Strand 1: Communications and Marketing

12. Regional: Midlands Metropolitan Hospital SMEs & Olympics 2012 DWP Prime Contractors Event Strand 1: Communications and Marketing

13. Strand 1: Next Steps Y&H Local Authorities DWP Prime Contractors West Midlands Councils West Midlands MPs Local Enterprise Partnerships BiTC Breakfasts DBIS GEO Equality in Procurement Trailblazers

14. Strand 2: Measurement and Monitoring Measurable SME Workshops Purchaser Workshops Large Contractors Workshops On-line impact survey

15. Editorial Board AWM GOWM Jobcentre Plus NAS RAWM SEWM Skills Funding Agency Solihull MBC Input from LGA, LGI&D, NIEP Legal Proofing/Co-authorship Mark Cook, Gayle Monk John Lee Strand 3: Revising the Framework

16. Major public sector suppliers Carillion Catalyst Lend Lease DWP Prime Contractors Network Rail Public Utilities Companies Others Channels BiTC Business Breakfasts Chamber networks Local Enterprise Partnerships Supply Chain forums Securing Business-to-Business Champions

17. DBIS and Local Enterprise Partnerships Key Message: help local decision-makers achieve their goals by: avoiding nugatory costs of commissioning similar legal research or developing similar solutions; setting out a common Framework, which public sector organisations can apply, as the best means of helping a greater number of those most at disadvantage in the labour market benefit from private sector-led economic growth; encouraging improved, collaborative public sector procurement exercises, which reach out to, and enhance contracting opportunities for, local companies, social enterprises and community and voluntary sector organisations; ensuring every pound of public sector spend is ‘sweated’ for it its potential to deliver local jobs and skills outcomes, as part of a concerted drive to improve the efficiency and value for money of public sector procurement exercises.

18. Building long term customer-supplier relationships Addressing skills shortages Aligning Corporate Social Responsibility with the ‘bottom line’ Responding to changes in the marketplace The Business Case to Business?

19. Responding to changes in the marketplace Localism versus centralisation Place-based budgeting More ‘bangs’ required for every public sector ‘buck’ The Public Services (Social Value) Bill Procurement - the ‘new’ regeneration?

20. What might success look like? West Midlands: Procurement Framework’s 4 Approaches at the core of public and voluntary sector commissioning and procurement process adopted by all 33 West Midlands Local Authorities adopted by all West Midlands Local Enterprise Partnerships more local people secure access to new, private sector job opportunities more local businesses secure access to contracts impact routinely monitored & reported Recognition and celebration Nationally: LGA and other national agencies promote to all Local Authorities and their partners BIS, CLG, DWP and OGDs endorse All UK LEPS adopt and champion the Framework Major suppliers endorse and promote asbusiness-to-business champions