Using the Public Services (Social Value) Act 2012 for competitive advantage
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European procurement rules, and government tender process, takes a lot of work. Only the biggest companies can afford a bid team.
wouldn't you like to tilt the playing field in your favour? The little-used Social Value Act 2012 can be used as a tool for good.
This presentation includes a workshop at the Association for bid and Proposal Management Professionals' 2016 conference on Oct 20th at Wokenfield Park
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Using the Public Services (Social Value) Act 2012 for competitive advantage
1. Winning your audience
The DNA of engagement
Identify l Influence l Achieve
APMP UK
14th Annual Conference 2016
Hugo Minney
2. 2
What is this session about?
Value for Money – and PROVING IT
Understand the procurement thought process and
Show value-add they way the buyer wants to see it
Get involved in the DESIGN stage and “write the tender”
Control the evaluation process
Public Sector is a huge market – and you can leverage SVA
Using the Public Services (Social Value) Act 2012 for
competitive advantage
3. 3
Who am I?
Dr Hugo Minney, PhD, Fellow APM, Fellow
CMI, Chartered Manager, Registered Project
Professional
Chief Executive, TyneHealth GP Federation
Chief Executive, The Social Return Company
4. 4
Structure of this talk
Procurement and the European Procurement Rules
The Social Value Act – and how YOU can use it
An example – Durham County Council
EXERCISE – Benefits Mapping
Taking action on what you’ve learnt
5. 5
Procurement environment
External
influences on
Procurement
Legal
EU Treaty Principles
UK Public Contracts
Regs
Freedom of
Information Act
Political
Localism Act
Modernising
Commissioning
Economic
Spending Review
SMEs and
Economic
Development
Environmental
Carbon Reduction
targets
Other environmental
sustainability priorities
Technological
E-Procurement
Transparency
Requirements
Social
Localism
Third Sector and
Community Groups
Equality & Diversity
6. 6
European Procurement Rules
• Major Clients – Transport, Policing, Justice,
Health, Local Authority
• Major Services – Construction, IT, Paperwork,
Business Services, Personal Services
The
Scope
• usually means cheapest – often with no
recognition of lifetime costs
• Does “Bigger” always mean better?
• What about past record, and delivery of
promises (chance for the unscrupulous)?
“Best
Value”
In UK, nearly 40% of GDP is public sector spend. Of this, around 30%
is external spend. That’s £150 billion! Who wants some of that?
7. 7
What is the “Public Services (Social Value) Act 2012”?
Requirement to consult on service design, BEFORE
procurement,
and take into account results of consultation,
Identify Local Priorities – and put a value
Can take past record into account
OR can do nothing – it’s a very loose act
“An Act to require public authorities to have regard to economic, social and
environmental well-being in connection with public services contracts…”
8. 8
An Example: Durham County Council
Darren Knowd – Head of Procurement
responded to request from Ted Salmon –
Regional President FSB (Federation of Small
Businesses) in 2013
Taskforce established to make
“something” happen
HM invited to represent voluntary and non-
profit sector and support small business
£571m external spend
Monitors its spending:
- with SMEs
- in North East /
Durham County
9. 9
Durham County Council – what they did
Training for local businesses in responding to tenders
Access – influence strategy, understand perception of value
Making it easier for small business and informal consortia to bid
Monitoring performance to ensure lifetime best value (honesty)
Use standards & frameworks to reduce bid costs – and standardise
across North East region
Represented on national panels eg discuss removal of PQQ
10. 10
How to understand your local situation
Buyers use techniques like Benefits Mapping to identify
preferred solutions and prioritise projects
11. 11
A “tidy” Benefits Map
Enablers/ given Actions/
Projects
End State
(Needs to look like)
Strategic
Objectives
Use of
Resources
Decision
process
Decision
quality
Performance
Management
Budget
Systems
Processes
People
Guidance
Whole system
results
National KPIs
Local
presentation
Public
Service User
Staff
Cross system
impacts
Resources
MEANS WAYS ENDS
12. 12
SROI (Social Return on Investment)
Establishing Scope
•Service, time, stakeholders, h2 engage
Map outcomes
•From interviews
•& cross-reference
Evidence and value
•Triangulate and desk-based research
•Assigning a value and Sanity-check
Establish impact
•Attribution
•Deadweight
•Drop-off
Calculate SROI
•Costs (all of them) and attribute. 'in kind' costs?
•Avoid double-counting benefits
•sensitivity analysis
Reporting, using,
embedding
•What should you do more of?
•What could be improved?
13. 13
Some Examples of Soft Benefits
“I can tell my grandchildren ‘I did a good job this week’ “
Lower Sickness/ Absence
Easier Recruitment/ Retention
Getting much more done
Engaged with corporate objectives – even to MAKE MONEY
People:
14. Winning your audience
The DNA of engagement
Identify l Influence l Achieve
APMP UK
14th Annual Conference 2016
Hugo Minney
15. 15
EXERCISE – Buyer’s Thought Process
Imagine you are a potential bidder (e.g.
Voluntary Sector)
Draw a Benefits Map (link to MAIN AIM)
Mark “Added Value” benefits
• Durham CC – MAIN AIM: Economic Development (jobs,
employment) in County Durham and the North East
• Submission – Domiciliary Support
16. 16
What it means for local businesses
Upstreaming – designing the specification
Automatic Advantage to local employers
Local Supply Chain
Local Government & Public Sector
The PQQ?
17. 17
ACTIONS TO TAKE AWAY
Public Sector procurement is too big to ignore
Consultation Exercises
Relevant contacts
Register on local frameworks
What do you already do? CSR etc
Manage your PR
18. 18
Hugo Minney
• Hugo.minney@nhs.net
• 07786 961837
• TyneHealth Ltd is in Whitley Bay, and supports the
health and care of 215,000 people in the North East
• Congress of North East Federations supports all of the
North East Federations, ie connected to 2million
population
• The Social Return Company develops benefits cases
using The Social Return on Investment (SROI) process.
You can read these on Amazon
19. Association of Bid
and Proposal
Management
Professionals
conference@apmpuk.co.uk
www.apmpuk.co.uk
www.apmp.org
UK Chapter
Time for
questions
Editor's Notes
15:00
Public sector body can identify local priorities which will automatically form part of any tender evaluation
Liverpool – reducing inequalities
Durham – building local economic growth
Can put a value on achievement of local priorities
Can take past record into account
Requirement to consult on service design, BEFORE procurement,
and take into account results of consultation
OR can do nothing – it’s a very loose act
15:05 – When did it happen and what was my role?
Training for local businesses in how to respond to tenders
Access to Procurement (documented and above board) to discuss strategy, future possible procurement, whether to respond
Turnover requirement removed, new contract structures including associations, frameworks to allow small business & reduce risk on council
Monitoring performance to ensure lifetime best value rather than just at procurement
Use standards to reduce bid costs eg NEPO, NEPRO*
Seeking to get all public sector bodies in two LEPs to use same forms or central register (NEPO & NEPRO) to reduce bidding costs
Represented on national panels eg discuss removal of PQQ
Establishing Scope
Which service
Over which time period & how long to look for benefits
Groups of stakeholders
Who are the relevant stakeholders (and who are also stakeholders)
Method for engagement
Map Outcomes
Outcomes elucidated from interviews
Categorise and assign to stakeholder groups
Cross-reference for clarity – which outcome impacts group(s)
Putting a value, & ensuring it is robust
Establish Impact
Attribution
Other factors – deadweight (what would have happened anyway), drop-off (how long do benefits last, how fast do they drop off)
Who does it impact, and do they agree to accept the impact?
Negative Impacts & recognition (& credibility)
Calculate SROI
Ensure captured all costs
Financial cash releasing, Financial Non-Cash Releasing, Soft (with a financial value)
Capture all benefits but avoid double-counting
Max & Min, sensitivity
Reporting, using & embedding
Stakeholder review & comments
What should you do more of
What could be improved
Automatic Advantage to local employers (or organisations which employ locally)
Opportunities for local supply chain (make sure you either are one, or use them)
It’s worth bidding for Local Government business (and there’s a lot of it)
BUT is there really an advantage to removing the PQQ?
Get involved in CONSULTATION EXERCISEs
Get to know the relevant departments of your nearest Local Authorities
(start with Procurement)
Register on local frameworks
what Community Value do you already add
(apprenticeships, support local charity, sponsored activity) and what appeals to director/ staff interest
Write about it and manage your PR