Social Value Policy
1.0 Background
1.1 On the 31 January 2013 the Public Services (Social Value) Act 2012 became fully operational. The Social Value Policy described here sets out the key principles and actions whereby the Council endeavours to embed practical, proportionate and effective inclusion of social value in every aspect of its procurement, commencing (as the legislation requires) at the pre-procurement stage and continuing throughout the lifecycle of the contract including Contract Management.
1.2 Social Value is a process whereby public bodies meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis whilst additionally generating benefits to society and the economy, whilst minimising damage to the environment.
1.3 Any revisions to the Act will be considered and incorporated into the process for achieving social value through our procurement activities.
2.0 Scope
2.1 While the Act only requires relevant authorities to consider social value in service contracts (and goods or works contracts where there is a service element) above a prescribed financial threshold, the Council's implementation of the duties in the Act will be as wide as practicable and the Council will seek to secure meaningful social value outcomes from its procurement activities:
a) with all suppliers, providers and contractors
b) for goods, services, and works
2.2 The Council will adopt the Social Value Portal's Themes, Outcomes and Measures (TOMs) Framework. The TOMs framework is a tool that allows the Council to attribute a proxy financial value against a range of social value activities committed to by suppliers, providers and contractors through the procurement process.
2.3 The Council may also consider other tools and methodologies that may be available to calculate social value outcomes.
3.0 What do we mean by social value
3.1 The Act states: "If the relevant authority proposes to procure or make arrangements for procuring the provision of services, or the provision of services together with the purchase or hire of goods or the carrying out of works. The authority must consider how what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area and, in conducting the process of procurement how it might act with a view to securing that improvement". It must also "consider whether to undertake any consultations as to matters to be considered" under that process.
3.2 For the purposes of this policy we refer to this improvement of wellbeing as social value. In order to implement this, we seek measurable, verifiable social value outcomes that:
a) are achievable and proportionate to the size, value and scope of the contract
b) are secured as a result of the supplier, provider and contractor being awarded the contract with the Council
c) contribute to achieving the Council's Key Strategic Priorities (as described in the Council Plan and other strategic plans)
3.3 Key Themes of social value as identified in the Social Value Themes, Outcomes and Measures (TOMs) Framework include:
i) Work
Creating local employment opportunities, creating equal employment opportunities, providing skills and experience for good work, providing good work opportunities, developing skills and experience for future work.
We will support our residents to access secure and sustainable employment, by helping them to develop and make the most of their skills. We will focus efforts on communities that have more prevalent issues with lower skills and lower wages, as well as people facing barriers to employment, such as those.
ii) Economy
Building diverse and sustainable supply chains, promoting a diverse and resilient business community.
We will work with our local companies to increase their positive impact on local communities, the local environment and supply chains, ensuring that more wealth is retained here and circulates locally. Stockton-on-Tees will be recognised place of responsible business and local ownership.
iii) Community
Building resilient communities, building community wellbeing.
We will work with our local companies to increase their positive impact on local communities, the local environment and supply chains, ensuring that more wealth is retained here and circulates locally.
Stockton-on-Tees will be recognised place of responsible business and local ownership. We will also build on community strengths and grow resilience, by helping to put more economic assets in the hands of our local communities and by encouraging communities to invest and spend with local companies to promote growth.
iv) Planet
Restoring our climate and improving air quality through decarbonisation, restoring our climate and improving air quality through transport, promoting environmentally sustainable procurement, protecting and restoring biodiversity and ecosystems, transitioning to a regenerative economy.
As part of our approach to support vibrant and healthy communities, we will take advantage of opportunities to make best use of green space, improve energy efficiency and air quality. This will include working with developers and other partners to influence design and delivery, as well as raising awareness about the health impacts of poor air quality and promoting behaviours that can have a positive impact.
3.4 This list is not exhaustive and additional or innovative means of achieving social value can be suggested by either the Council or its suppliers, providers or contractors delivering goods, services or works where appropriate.
4.0 The policy context
4.1 The strategic context for social value outcomes derives from the Stockton-on-Tees Plan 2024.
Priority one - The best start in life to achieve big ambitions
- giving children and young people the best possible start, in an inclusive community where everyone can thrive
- a safe community for all children and young people
- preventing children and families from experiencing the impact of poverty and taking a targeted approach to reduce the number of children in poverty
- support for children in our care
- a bright future and a sense of belonging
Priority two - Healthy and resilient communities
- ensuring happy and healthy lives for all - we will work hard to reduce health inequalities
- working with our residents to build resilience and independence in their own homes
- building safe and connected communities
- supporting those who are experiencing poverty and work with communities to reduce the impact of poverty
Priority three - A great place to live, work and visit
- our Borough will be a place to be proud of, for communities and business
- a vibrant and diverse place - the playground of the Tees Valley
- a great place to live and call home
- an environment that is well looked after, with outdoor spaces to enjoy and connect local amenities
Priority four - An inclusive economy
- delivering and sustaining economic growth
- ensuring all our residents can benefit from economic opportunities by delivering and embedding a fairer distribution of wealth
- cementing our role as the well-connected, economic heart of Tees Valley
Priority five - A sustainable Council
- we will ensure our Council is financially sustainable and manages our assets effectively to enhance their local impact. We will be a well-run Council across areas of our business and continue to improve outcomes for communities
4.2 The Council has aligned the calculator with the outcomes across the above five strands of the council plan.
4.3 This Social Value Policy will be linked with the objectives included within the following; Stockton-on-Tees Plan 2024, Inclusive Growth Strategy, A Fairer Stockton-on -Tees Strategic Framework and the Environmental, Sustainability and Carbon Reduction Strategy.
5.0 Implementation
5.1 The Council will embed a reduced version of the Social Value Portals Themes, Outcomes and Measures (TOMs) Framework, or any equivalent methodology agreed by the Council, in its tenders to encourage suppliers, providers and contractors to commit to social value measures above and beyond the scope of the contract.
5.2 Where social value is deemed appropriate, we will communicate clearly to our suppliers, providers and contractors the importance of social value to the Council through market engagement, briefings, meet the buyer events and on the Council's Corporate Social Responsibility internet pages.
5.3 Upon commencement of relevant tenders, the Council will where appropriate:
a) ask bidders to complete the TOMs calculator detailing and describing the social value outcomes and measures that they will deliver when providing the contract for goods, services or works
b) signpost bidders to additional support to assist them in identifying achievable and robust social value
c) include social value contract clauses in the contract terms and conditions and communicate these to all bidders
5.4 Upon completion of each and every tender, the Council will through Contract Management:
a) record and monitor the social value commitments made as a result of the tender process
b) monitor the delivery of social value over the life of the contract through regular supplier, provider and contractor review meetings
c) capture the proxy financial value of social value delivered and demonstrate outcomes through relevant case studies
6.0 Reporting on social value
6.1 The Council will report social value outcomes achieved through its procurement activities via the Stockton-on-Tees Plan 2024, Inclusive Growth Strategy, A Fairer Stockton-on Tees Strategic Framework and the Environmental Sustainability and Carbon Reduction Strategy.