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CCEG SOCIAL VALUE & INTANGIBLES REVIEW

compared? Public sector organisations need a robust system that can convert every bid to a nancial value.

Barriers CCEG wanted to research this question. Over the past year we have spoken to hundreds of public sector procurement professionals. We identi ed three main barriers to implementing SVA: 1. A lack of ideas. Overstretched procurement teams lack the time and experience to think about new ways of gaining social value. The default option is something familiar such as number of apprenticeships . Now there is nothing wrong with apprenticeships but a creative use of social value criteria can let bidders to provide things that cost them very little but give great added value using spare capacity. For example, rms bidding to manage leisure centres can provide the use of facilities at off-peak times to local charities carrying out physiotherapy for stroke victims. The key is to be imaginative in developing criteria and to understand local needs. 2. It is dif cult to compare various offers of social value. The other reason to default to apprenticeships is that they are easy to compare in a way that avoids any legal challenge. Bidder A offered 10 apprenticeships and Bidder B offered 5 apprenticeships therefore the tender marks for social value can safely be awarded to Bidder A. But what if the two bidders offer something very different how can these be

3. Social value promised isn t the same as delivered. Even if bidders have promised innovative and measureable social value, unless it is implemented and the impact monitored then these are just promises. Did those apprentices get real jobs or did they just make the tea for a few months?

This analysis led to the creation of the Seratio platform currently being piloted with over a dozen local authorities, which addresses each of these issues. Cost and bene ts Some public sector organisations are willing to use the SVA but feel it will simply push up the cost of tenders. However, this is not required - tendering organisations can always choose to set SVA criteria at a level that will not push up the cost. More positively, even where there might be an impact on the tender cost - for example construction companies building a new youth centre in neutral territory in an area of gang warfare - the tendering organisation will effectively get the extra value services at cost , with no added pro t margin, so there is still a real cost bene t. The use of a robust social value system - whether with an external partner such as Seratio or by using an organisation s own toolkit - reaps a number of bene ts. If used correctly, public sector bodies can use their buying power in tenders to support non-statutory services which they would like to fund but can no longer support. By using criteria that specify the local social value added, organisations can legitimately give local rms a chance to do better than bigger (inter)national rms. Speaking to local voluntary organisations can uncover a host of needs that companies could easily ful l.

Amey welcomed the introduction of the Social Value Act as an opportunity to engage with customers on how we could design and deliver services to achieve greater social, economic and environmental value in the communities, towns, cities and regions in which we work. This has predominantly been realised through partnering with third sector and community organisations and harnessing their local knowledge and expertise, ensuring every pound spent through public procurement is a pound bene ting all sectors of society. Richard Ward-Jones, Business Development Manager, Consulting & Strategic Infrastructure, Amey

November 2015

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Social Value and Intangibles Review - November 2015  

NOVEMBER 2015: Centre for Citizenship, Enterprise and Governance journal on Social Innovation and Social Impact Analysis SUPPLEMENTS: EU Sei...

Social Value and Intangibles Review - November 2015  

NOVEMBER 2015: Centre for Citizenship, Enterprise and Governance journal on Social Innovation and Social Impact Analysis SUPPLEMENTS: EU Sei...