Report of the Head of Integrated Commissioning and Procurement.

This report provides an update on how the Council’s Social Value Policy, adopted by Executive in 2021 is being used to contribute economically to Manchester’s ambition to be zero-carbon by 2038, supporting green jobs and skills.

The Committee considered a report of the Head of Integrated Commissioning and Procurement which provided an update on how the Council’s Social Value Policy, adopted by Executive in 2021, was being used to contribute economically to the Council’s ambition to be zero-carbon by 2038, supporting green jobs and skills.

Key points and themes of the report included:

·         The objectives and approach of the Social Value policy;

·         Outcomes of a review of the Social Value policy in 2021 which included a commitment to a reduction in emissions associated with the goods, services and works contracts that the council procures;

·         Priority cohorts had been identified and tenderers were requested to outline how Social Value proposals would benefit these specific groups;

·         The introduction of a 10% weighting in the evaluation of tenders specifically in relation to climate change and the environment to ensure that the council’s suppliers recognise the climate emergency and share the council’s commitment to achieve net zero carbon emissions by 2038 or sooner; and

·         Work was underway with authorities across Greater Manchester to establish a more harmonised set of social value measures, whilst retaining flexibility for measures in relation to local priorities.

Some of the key points and queries that arose from the Committee’s discussions included:

·         The number of people supported through the procurement process and are they carbon literate;

·         A request for case studies on what social value means in practice;

·         Whether contractors are required to pay the Living Wage and how this can be monitored and enforced; 

·         A need to increase public communications on social value work to inform and celebrate progress; and

·         If and how social value policy applies to arms-length management organisations (ALMO) and social landlords.

The Head of Integrated Commissioning and Procurement agreed to provide case studies of what social value means in practice outside of the meeting and explained that although figures on the number of people supported through the procurement process were unavailable, an annual survey of the top 300 suppliers was undertaken to analyse trends and showcased at an annual event with suppliers.

Members were informed that provisions for carbon literacy training within the supply chain would be covered by the 10% carbon reduction weighting required through the process. Suppliers are expected to outline their current position towards carbon zero, proposals on improving this position, and their target date for achieving net carbon zero as part of the tendering process.

The Head of Integrated Commissioning and Procurement confirmed that as the Council is a Living Wage-accredited organisation, suppliers are also expected to pay the Living Wage. Where suppliers already have a contract with the Council and do not pay the Living Wage, officers would work with the supplier to plan how this could be achieved.

In response to a query regarding how this is monitored and enforced, it was stated that the Council was investing in a Contracts Management System and looking into dedicated social value measurement tools to capture information from suppliers and harmonise monitoring of social value across the council. Suppliers would be expected to upload their own data into the Contracts Management System which would encourage self-service and enable officers to generate data reports quickly. Recruitment was also underway for two posts to monitor the effectiveness of the 10% carbon reduction weighting and these would be funded by the zero carbon programme.

Members were advised that events celebrating social value achievements had been held in the past but became virtual during lockdown. A face-to-face event was held in February 2022 and was well-received with the event for 2023 currently being planned. It was acknowledged that this was an opportunity to publicise social value in the procurement process more widely. The Head of Integrated Commissioning and Procurement confirmed that feedback as to how and where social value funding had been spent would be provided to those contributing to the funding.

The Committee was also informed that social value policies apply to the maintenance contract for the Council’s housing management company, Northwards. Social housing providers are included in the Council’s action group to become a Living Wage City and it was acknowledged that many social landlords in Manchester employ local companies and employees.

The Executive Member for Finance and Resources reiterated the Council’s encouragement for suppliers to invest in Manchester, commended the Council for reviewing social value policy to maximise social value across all areas and recognised the need to publicise social value work.

Decision:

That the Committee

1.    notes the report and

2.    recommends that the Council improves the public promotion of its social value work and achievements.