Date: 20th September 2022
What is Social Value, and why should we consider it?
East Sussex County Council’s Priorities and Social Value
When Should we Consider Social Value?
How will we support our Officers, measure success and ensure delivery;
About this document:
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Enquiries:Social.Value@EastSussex.gov.uk Owner: Ros Parker – Chief Operating Officer
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Version 1.0: 20th September 2022 Version 2.0: [date]
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This policy is aimed at all Officers that commission, procure or contract manage on behalf of East Sussex County Council. It documents how the Council will incorporate Social Value into procurements and contracts to ensure that benefits are being maximised for residents and communities.
Social Value has been a priority for the council for some time. Our suppliers have been helping to deliver apprentices, community value and engaging with skills initiatives for many years. In 2012 the government brought into law the Public Services (Social Value) Act 2012 (the Act) to require the application and consideration of social, economic or environmental benefits when commissioning and procuring goods, services and works.
The Act requires the Council to consider:
1. How what is proposed to be procured might improve the economic, social and environmental well-being of the area where it exercises its functions; and
2. How, in conducting the process of procurement, it might act with a view to securing that improvement.
The Act is a tool to help Commissioners maximise value gained from their procurement project. It drives better commissioning by encouraging Officers to engage with their local providers and communities to design better services, often finding innovative solutions to difficult problems.
Social Value
· Is not just ‘social’ – it means generating social, economic and environmental impact
· Involves a measurable change for the better
· Is achieved by sharing resources and working together
· Redefines ‘value for money’ from cost-saving to value adding
The term ‘Social Value’ is increasingly used across all sectors to describe the total positive impact of an organisation or a project in the area in which they operate.
At East Sussex County Council, we don’t just deliver services. Increasingly we work with communities to design solutions together and support existing projects and initiatives with our resources, networks and expertise where possible. Social Value in this context means working together and using all our resources to maximise our impact.
The key benefits of embedding Social Value into the Council’s culture include:
· Delivers better value for money by requiring our suppliers to do more than just deliver the core services.
· Increases local spend by rewarding local organisations or those that employ a local supply chain (especially with the use of Small and Medium Enterprises (SMEs)/Voluntary, Community and Social Enterprises (VCSEs).
· Increases opportunities for disadvantaged people and promotes social mobility.
· Promotes a more responsible supply chain.
· Leads to greener / cleaner areas and cities.
· Leads to greater innovation and long-term thinking.
· Helps to address specific skills gaps within a variety of sectors.
Social Value is based upon the four main pillars of Sustainability, Social, Economic and Environment. These are intrinsically linked to the Council’s four overarching priority outcomes of:
· Driving sustainable economic growth
· Keeping vulnerable people safe
· Helping people help themselves
· Making best use of resources now and for the future
The East Sussex Social Value Model ensures that we focus our pursuit of Social Value on what is most important in East Sussex right now. The Social Value Priorities and Outcomes within the model are based on the Council’s overarching priority outcomes above, supporting the current organisation strategies that underpin the delivery of the organisational priorities.
By embedding Social Value in the culture of the Council, we will be better placed to support the organisation in meeting its priorities and we will do this through the following:
· Consider Social Value at the early stages when Commissioning – “How can this requirement be better shaped to bring wider benefits to the area?”
· Think about whether the services they are going to buy, or the way they are going to buy them, could secure additional benefits for the residents of the county.
· Engage with commissioning colleagues early in the contracting lifecycle to provide guidance and identify opportunities and strategies to secure Social Value.
· Procurement will use Social Value in the quality evaluation criteria, aligning to the Council’s Goals and Priorities in the contract.
· Robust Contract Management – consistently monitoring and managing contracts to ensure Social Value commitments are met.
The East Sussex Social Value Model is based on the methodology utilised across Central Government and is therefore considered best practice in terms of aligning procurement practices with the requirements of the National Procurement Policy Statement (NPPS).
Contracting authorities must have regard to the NPPS in the exercise of their procurement functions as required by section 13 of the Procurement Act 2023.
· When it is relevant and proportionate to the contract.
· As early as possible in the Commissioning cycle.
Our guiding principles regarding Social Value should form the basis of all considerations during the Commissioning, Procurement and Contract Management cycles:
3. The Social Value proposed should be of direct benefit to the local community in which the contract is performed (i.e. East Sussex) and;
4. It should be relevant to the contract matter and relate to community/societal, economic or environmental considerations.
Social Value plays an important role in allowing the council to deliver not just financial or service specific benefits but also aligning its activity to deliver real value against the organisation’s aims and objectives. When commissioning, specifying and procuring a contract it is important that all officers consider how Social Value can contribute towards both service and corporate level objectives.
We want Social Value to be in the culture of the Council and to do this we must consider it in Commissioning, Procurement and Contract Management. To enable this, we will:
· Support and enable Commissioners to identify Social Value in their projects from the outset.
· Aid Departments to target Social Value outcomes strategically across their pipeline of projects.
· Support Procurement by providing the tools and support to embed Social Value in the procurement process.
· Support our Suppliers by helping them to understand our current priorities and areas of focus.
· Empower our Suppliers and Partners to contribute to delivering Social Value –charities/communities/enterprises working together.
· Strive to have Social Value considered in all appropriate Council strategies to help build better communities and improve the wellbeing of East Sussex residents.
· By providing guidance that can be used by Officers to understand the needs and priorities of certain sectors. This will be reviewed quarterly, drawing insight from the Social Value Review Group.
· By providing a suite of case studies to demonstrate practical approaches for securing and delivering Social Value.
· By defining Social Value Outcomes and Key Performance Indicators in our contracts.
· By monitoring and measuring commitments and deliverables.
· The ESCC Social Value Model will provide an open, fair and transparent method for evaluating the social value commitments submitted by bidders during the tender process.
· By celebrating our successes, showcasing the benefits and sharing best practice and strategies to achieve more in the future.
· By ensuring Contract Managers understand the importance of Social Value in the management of the contract.
· By ensuring Social Value commitments offered by our suppliers are monitored over time.
· By regularly reviewing and adapting the East Sussex Social Value Model to ensure it reflects current organisational priorities and strategies, and incorporates lessons learned from continued use.
For more detail on how to get involved, examples of what it looks like in practice and practical steps we can take:
· Visit our Social Value webpage [to be reviewed and updated alongside launching new policy]
· Get in touch at Social.Value@EastSussex.gov.uk