Buying Better Outcomes Workshop 3 Equalities, Procurement and Corporate aims

Equalities, Procurement and Corporate aims Remember, procurement should not be carried out in isolation. It should be a corporate activity carried out to achieve corporate and service aims. This includes equality priorities It should clearly feed into and be instructed by your organisation’s corporate plan and by government policy Information should flow both ways - procurement being instructed by and conditioned by the corporate environment. The latter should be informed about markets and the supply chain by procurement Procurement is not an aim in itself, it is an activity carried out to help deliver effective services and contribute to the overall vision and objectives of the organisation. For public organisations, responding to the needs of equality and diversity through procurement is part of recognizing and meeting the needs of the community and individuals within it. It is important to point out that procurements should be meeting and helping deliver the corporate plan and that it should also be providing information to enable informed decisions to be made in pursuit of the corporate and individual service /sector plans.

Corporate Need and Strategic Fit This slide is a pictorial aid to demonstrate that internal regulations such as commissioning, procurement and financial control exist within wider corporate and government policy and should be informed by and conditioned by wider strategic requirements and needs, including those for equality and diversity . On the other hand the corporate plans and objectives need to be informed by and respond to the information provided by these activities e.g. market information, customer/client demand patterns etc. Hence the two way street in terms of information flows from those carrying out procurement/commissioning duties and those determining corporate goals and policy. The procurement strategy itself should for example determine the approach that procurements being undertaken should take to respond to equality requirements.

The Procurement Value Proposition Efficiency DEMAND/ MARKET MANAGEMENT COMMUNITY OBJECTIVES & VFM Effectiveness Economy COST CONTROL & REDUCTION BENEFITS REALISATION The purpose of this slide is to demonstrate the wider influence that procurement, commissioning and contract management can have in delivering value through effective cost control, demand and market management, and benefits realisation to wider corporate objectives including equality and diversity. Effective cost controls (not just price reduction) can dramatically increase the amount of resources available to deliver more economic services to those who require them. Lack of cost control mechanisms usually lead to an inability to meet demand. Effective demand management can ensure that resources are directed to where they are best needed, for example to particular communities of need and not just delivered to the wider community in the hope that the target will be reached. Not only is this wasteful but it often misses the real target. Good equality analysis can assist this process, enabling resources to be allocated according to a hierarchy of need. E.g. an equality assessment for a contract for traffic safety campaign in one urban local authority found that accidents to children after school mainly affected children of newcomers from a particular rural communities. The campaign was consequently redesigned to reach those communities at a much reduced cost. Benefits realisation can provide additional value through procurement by identifying those additional values that some procurements can bring by including reference to the wider organisational objectives in the specification or terms and conditions of contract. E.g. identification of employment opportunities for certain sectors.

The Bicycle This slide is a slightly light hearted attempt to reduce the amount of internal conflict and waste caused by territorial disputes and semantics e.g. the debate between the relationship between commissioning and procurement . The point is that we are all travelling in the same direction. By working together we can more clearly identify those areas where greater value can be gained and responsibilities such as the equality duty can be more readily achieved through effective communication and joint ownership. Research has shown that more waste is created by internal conflict than through the relationship with third party deliverers. In the resultant turmoil, objectives such as equality duties fall off the radar. People not working together internally on these matters, results in potential benefits and VFM not being achieved. An example is not gathering relevant equalities data and thinking it through at the start. c

The procurement cycle Identify Need Develop the Business Case Define Procurement Approach Supplier Appraisal Tender Evaluation Award Contract Manage Implementation of Contract Closure/Review From bicycle slide

Process for joint planning and commissioning Look at particular groups of service users Develop need assessment with users and staff Identify resources and set priorities Plan pattern of services, include prevention Decide how to commission services efficiently Commission – including use of pooled resources Plan for workforce and market development Monitor and review services and process Look at outcomes for children and young people From bicycle slide (generic version, not children’s services)

Delivering social value and other benefits One of the most difficult aspects is actually identifying and realising the potential benefits and social value you create Ensure (as part of your performance management process) that these are not only identified as targets but clearly recorded to demonstrate that benefits and social value have been realised and contributed to policy outcomes and the community Facilitators should explain that the Public Services (Social Value) Act applies to the pre - procurement stage of contracts for services because that is where social value can be considered to greatest effect. Commissioners and procurers should consider social value before the procurement starts because that can inform the whole shape of the procurement approach and the design of the services required. Commissioners can use the Act to re-think outcomes and the types of services to commission before starting the procurement process. See Procurement Policy Note – The Public Services (Social Value) Act 2012 – advice for commissioners and procurers Information Note 10/12 20 December 2012 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/79273/Public_Services_Social_Value_Act_2012_PPN.pdf However, little will be realised unless an effective performance management process ensures benefits are delivered.

Delivering social value and other benefits It is also important to recognise the benefits that were gained by the supplier not only in terms of reputational value but also for example access to a larger workforce pool and often ultimately a wider customer base It is sometimes forgotten in the quest for VfM that not all added value has a £ sign in front of it. Try to find ways of recording other benefits such as individual self esteem and achievement, well being and the improved status of protected groups. It is worth stressing that value accrues to all stakeholders including the supplier, who sometimes feel they are being asked to provide added value for no gain themselves. As the slide suggests this is not necessarily true. The Nef study (Add URL) using the Social Return of Investment Methodology, looking at Camden’s mental health services provision measures a social value of £5.75 for every pound spent. Outcomes measured included: reducing stigma and discrimination increasing community cohesion improving life chances for Camden’s young people increasing access to skills and employment for priority groups such as older people, carers, parents returning from work, and people with mental or physical ill health

Discussion/ Exercise compliance with the equality duty Within your procurement activities, consider whether or not your authority’s overall corporate vision and aims supports  compliance with the equality duty adding value by achieving wider corporate equality aims Are relevant equality matters and the requirements of the equality duty addressed in your procurement /commissioning strategy? What steps can you take to improve your performance?