Answers not options Public Services (Social Value) Act 2012 Nathan Holden, Partner 24 April 2013

History  Private Member’s Bill – Public Services (Social Enterprises and Social Value) Bill – introduced by Chris White, MP for Warwick and Leamington (C) in June 2010  Aimed to strengthen the social enterprise business sector and make the concept of “social value” more relevant and important in the placement and provision of public services. National social enterprise strategy provisions were withdrawn.  Royal assent on 8 March 2012  Fully in force from 31 January 2013 (ss 1 & 2: Commencement Order: SI 3173 of 2012)

Applies to:  Contracting authorities in England and, to a limited extent, in Wales  Public services contracts  Framework agreements where the greater part of the value is likely to relate to public service contracts **Notes: Applies to “relevant authorities “ which are contracting authorities for the purpose of the Public Contracts Regulations 2006 “Public services contracts”: the term has the same meaning as in the Public Contracts Regulations 2006 S1(13) of the PS(SV) Act limits application of s1 of that Act to public services contracts and framework agreements in relation to which the Regulations would have effect S1(1)(a)PS(SV) Act excepts from the definition of “public services contracts” contracts which are awarded under the terms of a framework agreement

What must a contracting authority do? Before starting the process of procurement for public services contracts and relevant framework agreements 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  how, in conducting the process of procurement, it might act with a view to securing that improvement; and  whether to undertake any consultation on these two issues.

When does the process of procurement start? The contracting authority is considered as having started the process of procurement as soon as it takes the following steps (whichever occurs first)  Despatch of a contract notice to the OJEU  Publication of an advertisement seeking offers or expressions of interest  Contacting a person in order to seek an offer or expression of interest  Contacting a person in order to respond to an unsolicited offer or expression of interest  Entering into a contract or conducting a framework agreement

What is the “relevant area”?  Area/s where the authority/ies on whose behalf the contract/framework agreement is intended to be made primarily exercise its/their functions (disregarding any areas outside the UK)

Considering how to conduct the process When considering how to conduct the process the contracting authority:  may only consider matters that are relevant to what is proposed to be procured; and  must consider the extent to which it is proportionate in all circumstances to take those matters into account.

Implications for RPs Two sides of the coin:  In your capacity as procurers of services  In your capacity as providers of services {picture of a coin}

Thank you Nathan Holden Partner Answers not options