3Ps: problems & prospects of social enterprise procurement

• The Policy Framework– The EU– The UK– ‘raining policy’– The map of the terrain– Local authorities– Social enterprise– Possible conclusions

The EU policy Framework

• Social Economy Unit 1989

• Conferences on social economy; Paris 1990, Rome, 1991, Lisbon 1993 and so on

• Social rights viewed as an important contribution to economic and social cohesion

• European Social Fund (1957)

UK Policy

2001 Dept of Trade and Industry defined social enterprise

2003 Developed a public sector procurement toolkit

2003 National Procurement Strategy

‘raining policy’ showing the way or a ‘good thing’

Procurement

• Procurement is the strategic development of the plan to purchase goods or services

The partners in procurement

• A Local authority

• Social enterprise

The Local Authority

Mission

• “Strengthen communities, deliver significant improvements in quality of life for people and provide equal life chances, by working through purposeful partnerships that are grounded in a clear common performance framework”. (2006/03)

Problems for LAs

•  do not know whether they procure from social enterprise at first tier or downstream of the supply chain 

• are unaware of their total spend on goods and services

• do not recognise social enterprise as distinct organisations having social/community aims (view them as SMEs or voluntary sector)

The Driver

• “…bidders to submit optional, priced proposals for the delivery of specified Community Benefits which are relevant to the contract and add value to the community plan.” (National Procurement Strategy 2003:47)

Procurement and economic development

• “we need to create community benefits built into the evaluation models and procurement exercises, because if we don’t evaluate that, and we don’t score that, and we don’t weight that, as something that we want then they are not going to score highly compared with an equivalent organisation “

The steps (the footpath)

• Engaging with and understanding Social Enterprise

• Developing a model of procurement

The journey

• Cohesive development of a procurement plan

• Through a series of training in-house for those who purchase or procure goods and services

• The provision of an on-line training tool for specification writing contracts and tenders.

http://www.specification-writing.info/welcome.aspx

The boundaries (or contours)

• ‘Best Value’ (2000)

• Gershon (2004)

The EU; formal requirements advertised in the OJEU valued at £150,000 and the local press

• The County; discretionary for under £30,000, local press for the rest

The destination?

• “In a limited way, better procurement activities in the local authorities and more procurement ready social enterprises will have a benefit overall of improved economic and social outcomes for both parties” (EDO 2007).

The Social Enterprise A

• designs and sells a range if quality clothing and accessories under the ‘bright kidz’ brand to make children safe

• Promotes and campaigns for children to walk and cycle to school

• Value added: health, social, safety and environmental benefits

What they do (their map)

• Campaign through local schools to get children walking

• Supply High visibility waistcoats to schools as a promotional interest.

• Income gained through sale of goods

Social Enterprise B

• Provides occupational therapy and counselling support to people with mental health and learning difficulty as well as physical and sensory impairment

• To provide a businesslike support system enabling them to achieve their aims

What they do (their map)

• Support for families of people with mental health problems

• Support for care homes

• Saving lives

The why

• “if this provision wasn’t here then the majority of people would deteriorate to probably requiring acute services, hospitalisation and in some cases it could be fatal to some, to suicide. So it’s keeping people stable but developing them and on one extreme I could say we are saving lives, and the lower extreme we are increasing peoples quality of lives: that’s what’s special about it.” (CEO 3.03.07))

Possible conclusions

• 1. The UK

• 2. Social enterprise and procurement

• 3. Relationship between social enterprise and procurement officers