The following referrals have been made to this Committee up to and including the date of publication of this agenda.

SOCIAL VALUE AND INCLUSIVE GROWTH RATIONALE AND POLICY PROCURMENT POLICY

Previous reference: Governance and Audit Committee minute 56 (2021/22)

The Governance and Audit Committee, at its meeting on 21 April 2022, whilst discussing amendments to the Constitution – Contract Standing Orders and Financial Regulations, resolved, amongst other things:

(1)  That the Social Value Procurement Policy be referred to the Corporate Overview and Scrutiny Committee for consideration when the policy is reviewed.

The Committee is asked to note the referral listed above and Document “Q” to decide how it wishes to proceed, for example by incorporating the item into the work programme, requesting that it be subject to more detailed examination, or refer it to an appropriate Working Group

Social Value & Inclusive Growth Rationale and Policy Procurement Policy

The report of the Director of Finance and IT, Document “Q” provides an update on the application of the Social Value and Inclusive Growth Rationale & Policy implemented in 2018.

The report identifies key successes and proposes actions to be included in the review of the policy and subsequent update to ensure continuous improvement is evidenced.

Document “Q” asks Members to note:

·         The content and intent of the rationale and policy remain relevant to today

·         The positive actions taken to progress the Social Value and Inclusive Growth Rationale and Policy.

·         The intent for the Head of Procurement to lead a review of the Social Value and Inclusive Growth Rationale and Policy with the intent to engage stakeholders including VCSE; supply chain; and officers from across the Council including Economic Development; Employment and Skills; Anti-Poverty leads; Equality leads; and services who main procurers in the Council on revisions. Members may wish to contribute to that process.

·         The review will specifically asses:

o   Options to increase local spend, including capturing sub-contracted spend where possible. The review will also establish appropriate targets and consider the one-off impact of large scale projects.

o   What metrics should be included in Bradford specific TOMs (Themes; Outcomes; Measures).

o   Ensuring proposed Social Value proposals are captured and their delivery can be evidenced in outcomes to benefit the District.

o   Options to enhance Social Value from the Council’s supply chain.

(Chris Chapman – 01274 433656)

The Governance and Audit Committee, at its meeting on 21 April 2022, whilst discussing amendments to the Constitution – Contract Standing Orders and Financial Regulations, resolved, amongst other things:

(1)   That the Social Value Procurement Policy be referred to the Corporate Overview and Scrutiny Committee for consideration when the policy is reviewed.

The Committee was asked to note the referral listed above and Document “Q” to decide how it wished to proceed, for example by incorporating the item into the work programme, requesting that it be subject to more detailed examination, or refer it to an appropriate Working Group. 

The Director of Finance and IT presented Document “Q” which provided an update on the application of the Social Value and Inclusive Growth Rationale & Policy implemented in 2018.  It identified key successes and proposed actions to be included in the review of the policy and subsequent update to ensure continuous improvement was evidenced.

The report identified key successes and proposed actions to be included in the review of the policy and subsequent update to ensure continuous improvement was evidenced.

Members were asked to note:

·         The content and intent of the rationale and policy to retain its relevance.

·         The positive actions taken to progress the Social Value and Inclusive Growth Rationale and Policy.

·         The intent for the Head of Procurement to lead a review of the Social Value and Inclusive Growth Rationale and Policy with the intent to engage stakeholders including VCSE; supply chain; and officers from across the Council including Economic Development; Employment and Skills; Anti-Poverty leads; Equality leads; and services who main procurers in the Council on revisions.

·          

It was explained that the review would specifically asses:

·         Options to increase local spend, including capturing sub-contracted spend where possible. The review would also establish appropriate targets and consider the one-off impact of large scale projects.

·         What metrics should be included in Bradford specific TOMs (Themes; Outcomes; Measures).

·         To ensure proposed Social Value proposals were captured and their delivery evidenced in outcomes to benefit the District.

·         Options to enhance Social Value from the Council’s supply chain.

A Member referred to measures to increase social value from the Council’s supply chain which had been in place for a number of years.  Whilst acknowledging that some contracts may be too large for local businesses he questioned how contracts were constructed to encourage local business.  He quoted a previous example of a sole trader being asked for a Health and Safety Policy before being allowed on the list of contractors to be considered.  He hoped such barriers had been removed and that inclusion in tender processes were now easier for small firms.

It was also questioned if the use of local sub-contractors was a requirement in larger contracts.

It was explained that there were a number of large contracts awarded but more had been done to encourage small firms.  Work was required to capture the number of local sub-contractors and assurances were provided that it was now easier for small firms to bid.

The social value of the Broadway project was questioned although it was acknowledged that the input of previous officers and councillors would be required.

Members were informed that the 1City Park project and the Children’s Trust were appointing a number of apprentices.

A Member who had previous experience as a school governor explained the difficulty the phrase ‘whenever possible’ was when referring to awarding contracts to small firms. He hoped that lip service was no longer paid when contracts were constructed. 

In response to questions about penalties for non-compliance with contracts Members were assured that these were in place and future business would not be granted if contractual obligations were not met.

The lack of a local energy provider was questioned and it was confirmed that none of the suppliers were based in the district.  It was hoped that the development of the District Heat Network would increase local spend.

A Member discussed a small contract award which had been quoted at a cost of £2,000 but increased to £30,000 and questioned who monitored such contracts.  It was agreed that further information was required about that project. 

In response to questions it was confirmed that contracts did not include compliance with Equality Impact.

It was suggested that contribution to social activity, outside of the Section 106 planning obligations, be include in contracts.  It was agreed that suggestion could be considered. 

It was explained that the first task of the new Head of Procurement would be to engage the market and produce documents which it was envisaged would be in February or March.  Engagement would be conducted and the policy would be brought back to Members to ensure that were happy.

Resolved –

(1)  This Committee requests that the comments raised by members be considered as part this review process.

(2)  That the new Social Value and Inclusive Growth Rationale and Procurement Policy be presented to this Committee in July 2023.

ACTION: Strategic Director, Corporate Resources