Co-operative Procurement and Social Value Meet The Buyer Event 30 th January 2013 Emma Alexander Executive Director, Commercial Services

2 Introduction In financial year 2011/12 the Council spent £138m with suppliers in an OL postcode which equates to 48% of our overall spend for the year. Currently our year to date spend with Oldham suppliers is £93m and this is also running at 45% of year to date overall spend. In addition to the £100 million savings we have already made, an additional £31 million of savings will still need to be made in order to meet our budget challenge for the next two years ( ). Making the savings for two years will mean we have time to develop longer term plans for any future changes we need to make to services. The size of the challenges mean that radical change is needed in the way we deliver our services. Working in partnership with our suppliers to secure excellent services for Oldham residents. To support the Council’s ambition to get 2013 people into work, in 2013.

3 Procurement Regulations For all contracts of goods and services over £173,934 and works over £4,348,350 we must follow the EU procurement regulations and open competition to bidders throughout the EU. The tender thresholds for Oldham Council were increased to £50k in For all quotations up to the £50K threshold at least one must be from a local supplier, wherever possible.

4 Co-operative Procurement Co-operative Procurement is about getting the greatest possible economic and social return on every pound spent from the public purse in Oldham. This means that as well as looking at the price of each individual contract we also look at how we can deliver extra benefits to our Borough when we procure goods and services. We shape our procurement processes so that they consider the social, economic and /or environmental benefits.

5 Co-operative Approach We are working on developing new service delivery models, for example in Adult Social Care. The Energy Switching Campaign is a terrific example of how we can help people who are currently affected by the pressures on their weekly income; to get money back from the utilities providers. –Nov Auction average saving of £170 –31,500 people have already signed up for January Auction We have worked closely with First Bus on the Fairs Fare initiative and they have now announced a near 30% discount on local bus fares for Oldham residents. Both are practical examples of the co-operative approach we are taking to support the residents of Oldham.

6 Co-operative Procurement : The Opportunities Reflects our values-based co-operative approach. Looks beyond conventional value for money. Creates added value and extra benefits – from jobs and apprenticeships to the Living Wage. Social Value Act and Community Right to Challenge – extra impetus to get the greatest social benefits out of out of commissioning / procurement.

7 Our progress so far… We’ve already taken steps to develop and incorporate a range of ‘social value’ considerations into our procurement practices, including: Generating sustainable employment and training opportunities for unemployed people in the Borough of Oldham; Providing apprenticeships and / or training opportunities for residents in the Borough of Oldham; Promoting supply-chain opportunities to SMEs in the Borough of Oldham; Where appropriate, splitting larger contracts down into lots to better enable local Small-Medium Enterprises (SMEs) to quote for business;

8 Proposed Next Steps Carrying out training directly with local suppliers where it is required, so they better understand our procurement process. The development of skills in the supplier’s existing workforce. Ensure main contractor engages local supply chain. Jobs and apprenticeships. Training for staff. Splitting larger contracts into smaller lots. Quotes from local suppliers. Regular Meet the Buyer Events.

9 What are the key challenges? Need to ensure that the new way of working is affordable for the Council and deliverable for supplier. Work in partnership to achieve win-win solutions. EU Law – we must ensure contracts for goods and services valued over £170k are open to suppliers anywhere in the EU.

10 What do we propose to do? Build on and expand our work so far with a co- operative approach to commissioning and procurement. Use a bespoke approach that gets the maximum possible social and economic benefits for Oldham out of each individual contract. This would ensure that these added benefits were incorporated into every appropriate contract. So what are the added benefits that we want to ask for?

11 Your ideas How can you add value through work experience, training, employment & volunteering? What is your commitment to the Council’s key objectives in health, well-being and community engagement?  How can you develop your workforce skills?  Your aspirations for a ‘living wage’. Ideas to be posted on Ideas Wall

12 What do you want from Oldham Council We are currently building a delivery framework to ensure social value is included in our contracts. We need your input into this framework and what you would like to see in return from Oldham Council. Ideas to be posted on Ideas Wall or discussions with the Buyers

13 Any Questions?