Community Benefits Who’s community and whose benefit Jim Miller – Strategic Sourcing Director David Taggart – Category Manager
The Public Sector in Scotland spend over £9bn a year on the provision of goods, services and works. Within Health this figure is over £2bn which gives us all substantial scope to deliver positive change to the communities we live and operate in, through the spending of public money.
“A community is like a ship everybody should be willing to take the helm.” Henrick Ibsen
Overiew We will explore: Background to Community Benefits Proposed approach through the Minor Building Works Framework Current Landscape and Practices
Background to Community Benefits • Who is the community • Why Communities Benefits • Legal Bit • What are community benefits
Who is the community Community noun “a group of people living in the same place or having a particular characteristic in common.”
The way that the public sector allocates resources has a huge impact on Scottish society, the economy, and the environment.
Our Challenge “The first question that we should ask when developing any contract specification should be: Can we include a community benefit clause?” John Swinney, Cabinet Secretary for Finance and Sustainable Growth, March 2010 Within a challenging financial environment Public Authorities are being asked to transform services, purchase more sustainability, and commission in a way that delivers more for less.
What are Community Benefits? Within Procurement: “Community benefit clauses provide a means of achieving sustainability in public contracts. They can include targeted recruitment and training, small business and social enterprise development and community engagement.” The Challenge: To shift the debate from how best to manage and control costs, to how best to maximise social value from within existing resources.
What are Community Benefits? “social value” - value of the changes that public spending brings to our communities and society. ‘social value’ can be maximised at each stage of the commissioning cycle, typically at no additional cost. This can be achieved simply by understanding what communities’ value, specifying services and procuring them in a slightly different way, and in doing so deepening relationships with communities both local and national, supported businesses, SMEs and Third Sector suppliers.
Supported Businesses
What are community benefits Six areas to consider 1. Knowledge Spreading 2. Staff Development 3. Future Proofing 4. Supply Chain 5. Community Enhancement 6. Education
Current Practises In general community benefits have been targeted at large scale projects involving employability, job creation and environmental factors. – Commonwealth Games – Raploch Regeneration – The New Forth crossing Community Benefits appear to need large scale projects. Recent report into public construction procurement suggests over £2m to sustain community benefits.
Legal Framework Treaty on the Functioning of the European Union (TFEU) Article 34 – Free Movement of Goods “Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States.” Public Contracts (Scotland) Regulations 2012 Govern Public Sector Procurement in Scotland
For above threshold procurement: • European Procurement regime obligations: – Transparency – Non-discrimination – Some further detail in Regulations and Directives – Detailed case law (uncertain in some areas) • National Obligations – Public Administrative Law obligations – Best Value – Compliance with existing legislation
• Different rules apply to below / above threshold purchases: – Above threshold - must comply with both national and European procurement law – Below threshold and cross-border interest - comply with general principles of European law – (Sidey v Clackmannanshire Council) – Below threshold and no cross-border interest - comply with national law, best value & standing orders
Minor Building Works Framework • What it is • How it will Operate • Benefits • Timetable
Construction in the NHSS £0.5bn • Multiple contractual vehicles for works contracts across NHS both Revenue and Capital • Minor Building works will cover the grey areas and is worth an estimated £40m per annum
Definition of Minor Building Works “Delivery of multi -disciplinary works contracts with a project value between £50K to £1m.” Does not include single trades or labour only contracts which will still be managed at a local level”
Framework Structure LOTS • 17 Geographical Areas • 2 Value Ranges for each Area • 6 Framework Contractor per Lot • Regional pre-tender meetings
Operation of the Framework • Method of Call off: Call off will be via Mini- competition. Projects can be single or programme of works (in emergency direct call off will be possible based on rates received through tender process but this not recommended as it may not achieve best value). • Terms and Conditions: Specific contracts can be awarded using Industry standard suite terms and conditions. NEC3 (New Engineering Contract) or SBCC (Scottish Building Contract Conditions, Scottish form of JCT). NEC is the preferred options, as it is the standard for Frameworks 2.
Benefits • Community Benefits One of the main aims of the framework is to embed Corporate Social Responsiblity which will support Health Boards to deliver community benefits locally. • Guidance: On conclusion of the Framework Agreement guidance on its use and operation will be provided by NSS PCF. • Training: NP will deliver training to Health Boards on the use of NEC3 for procurement staff to allow them to mini-comp and operational staff on the effective management of NEC3. • Standardisation: A consistent approach will be adopted across NHSS
Timetable • Call to Competition (Advert) – October 2014 • Evaluation of PQQs – December 2014 • Issue of Tender - February 2015 • Evaluation of Tenders – March/April 2015 • Award of Contract – June 2015
Are we trying to square the circle? “It is either easy or impossible” Salvador Dali
Proposed Approach Minor Building Works Framework offers a unique opportunity for the NHSS to deliver community Benefits, That can: Deliver additional benefits to the communities we are part of; Provide an economic stimulus to the nation; Develop relationships with our local supply chain.
National vs. Local The framework will embed the requirements of delivering Community Benefits through Projects awarded under the Framework and ensure compliance with legislation. But… It will be the local contracts awarded under the framework that will deliver the community benefits allowing them to be delivered at a local level.
Proposed Community Benefits Menu • Framework will include a Community Benefits menu • Each item will be allocated points • Values will be established for points • Specific Contract will include a requirement that contractor will deliver a set point value based on the estimated value of the Framework • If this works the Community Benefits can be used across other estates and facilities frameworks, local contract opportunities and other contracting areas.
Community Benefits Menu examples Knowledge Spreading – Assist third sector • Develop Business Case • Provide advice to committee • Provide H & S training – Community • Deliver topic specific talks to community organisations Staff Development – Deliver training to NHS Staff – Internal Staff Development work – Secondment opportunities – Provide employment opportunities • Provide apprenticeships • Taking on long term unemployed
Community Benefits Menu examples • Future Proofing – Embed sustainability in works • Education – Deliver 1 hour curriculum based education to local schools – Attend Job fare – Provide work experience linked to school programme – Provide work placements for local colleges – Provide Graduate Placements – Provide training opportunities for long term unemployed
Community Benefits Menu examples • Supply chain – Appoint supported business – Advertise Sub-contract opprotunities locally – Deliver Sub-contractor development training • Community Enhancement – Create community project – Sponsor local sports team – sponsor community event/tournament – Enhance local environment
Calculation of Community Benefits
In Summary • Community Benefits can: – Delivers social aspects (supported Business) – Stimulates Economy (local) – Provide sustainable development – Raise Health Boards profile in the local community • Community Benefits will contribute to the Health of our patients • Community Benefits will increase suppliers capability • Best practice can be shared • Potential for future awards
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