Agenda item

Social Value in Procurement - Update on the Options Being Considered To Accurately Measure Social Value Outcomes

To consider a report by the Chief Officer Financial Services which provides an update as to progress towards identifying precise Social Value related KPI targets and methodologies for measuring the same.

 

 

(Report attached)

 

 

 

 

 

 

Minutes:

The Chief Officer Financial Services submitted a report which provided an update as to progress towards identifying precise social value related Key Performance Indicator (KPI) targets and methodologies for measuring it.

 

Addressing the report the Procurement Manager, Resources & Housing explained that in June 2019, the Council’s 2019-2024 Procurement Strategy was introduced. The Strategy sets out 5 key areas for procurement, including delivering social value beyond the core services being procured. The Procurement Strategy also incorporates KPIs to measure performance in respect of each of those 5 key areas, however a number of these KPIs require further detail as to the precise targets and methodology for measuring performance.

 

Members were informed that the following options for monitoring and measuring Social Value were currently under consideration:

·  Option No. 1 – Do Minimum

·  Option No.2 – External Digital Social Value Toolkit

·  Option No.3 – In House Digital Social Value Toolkit

In terms of the next steps it was reported that officers would continue to work with commissioners to assess the above options. Members noted that while Options 2 and 3 would provide greater detail and clarity as to the actual Social Value achieved in all the Council’s contracts, both of these options would require some level of additional resource and attract an additional cost. Once all Options had been thoroughly investigated and following the consultation, the Head of Commercial (Legal) would recommend a preferred option to the Chief Officer Financial Services for approval in accordance with her delegated authority.

Commenting on the “Next Steps”, paragraph 3.12, Members asked what would be their involvement with the evaluation of the proposed options and associated decision making and what were the likely timescales.

Members were informed that the executive member was being consulted as to whether further reports should be considered by the Executive Board

Members were advised that it was anticipated the evaluation period would take between 6 – 9 months before some meaningful data became available.

Members queried how Social Value was defined

Members were informed that currently there was no definition for social value, but as part of the tendering process, suppliers would be encourage to identify potential skills/ knowledge which would benefit Leeds – Could, for example, the local knowledge or the expertise of a particular supplier be given a value.

It was reported that a Guide to Procurement was currently been developed which would include social value as part of the tendering process

Members requested if the above mentioned document could be circulated to Members.

Referring to the list of Social Value Opportunities, Paragraph 2.7.1, Members queried if the list could be varied.

Members were informed that the list provided was simply an example and could be varied to take in other suppliers, Health Contracts for example.

Members asked that officers consult with elected members in an appropriate forum to enable their engagement as to what should be included in terms of Social Value.

The Chair thanked the Procurement Manager for his attendance and contribution.

 

RESOLVED –

 

(i)    That the contents of the report be noted

 

(ii)    To note that further information would be brought back to this   Committee in March 2020 within the annual assurance report on   procurement policies and practices

 

(iii)    That the document “A Guide to Procurement” be circulated to   Members at the earliest opportunity

 

Supporting documents: