Agenda item

To consider a report from the Chief Officer Financial Services inviting the Scrutiny Board to consider and provide any comment on the Social Value Guidance document for commissioners being developed by Procurement and Commercial Services.

The report of the Chief Officer Financial Services provided the Scrutiny Board (Strategy and Resources) with an update as to the progress towards finalising the Social Value Guidance document for commissioners being developed by Procurement and Commercial Services (PACS).  The report also sought the views and support from the Scrutiny Board in terms of ensuring that the priorities listed in the guidance captures Members requirements with regard to Social Value and that the guidance is fit for purpose.

In attendance at the meeting were:

·  Councillor James Lewis – Executive Member for Resources

·  Neil Evans – Director of Resources and Housing

·  Victoria Bradshaw – Chief Officer Financial Services

In consideration of the report and guidance document, the following key points were raised:

·  The intention to strengthen the existing wording of the guidance document – the Board acknowledged and welcomed the intention to strengthen the wording in the guidance document surrounding the expectation on commissioners to consider what opportunities exist in any contracting opportunity to deliver added social value and to give an explanation where it is not deemed relevant to any contract activity.

·  Acknowledging the key priority areas in respect of delivering social value – as reflected in the guidance document, the Board noted that, as a minimum, commissioners are required to think about the appropriateness of integrating the 3 main priority areas in respect of Employment and Skills; the Environment; and Education.  In addition to this, they should also be asking suppliers to consider for themselves what else they can do to be not just entrepreneurs but to be ‘social value entrepreneurs’ in Leeds.

·  Providing support and advice to specific service areas – the Board noted that while the document had been developed to provide general advice to commissioners, there were lead staff members within Procurement and Commercial Services working within specific service areas to offer more detailed advice and support where needed.

·  Impacts on smaller businesses – while it was noted that smaller businesses would still be able to offer social value within their own contracts (i.e. being a local employer), the Board was assured that such businesses would not be disadvantaged as the guidance was principally aimed at contracts above £50k.

·  Determining social value thresholds – the Board acknowledged that while the type of contracted activity will have an influence in determining appropriate social value thresholds, the guidance document suggests a minimum weighting of 10% for all contracts above £50k.

·  Contract monitoring and assuring the delivery of social value benefits – the Board was informed that the Executive Board will receive quarterly procurement updates as part of the Financial Health Monitoring Report. In helping to ensure greater consistency across the piece, the Board was also informed of proposals to introduce a new system that will require sign up from contractors to enter relevant monitoring details into the system.

·  Social Value Board – It was acknowledged that the new Social Value Board will include representation across all directorates.

·  Working collaboratively with partners – the Board discussed the positive collaborative working involving anchor institutions to maximise joint procurement opportunities.

RESOLVED – 

a)  To note the content of the report; and

b)  Support the adoption of the Social Value Guidance document.