Community Action Derby

Kim Harper

Chief ExecutiveUpdate Commissioning & Procurement

What can be done?Various economic tools that local authorities can use that support local contracting and benefit local

economies.

Powers• Well being power (Section 2 of the Local Government Act 2000) allows local authorities to

do anything they consider likely to promote the economic, social and environmental well being of their area unless explicitly prohibited elsewhere in legislation.

• Sustainable Communities Act 2007 providing a process for improving sustainability of the area which can not be met already by the Well Being Power.

• Through these powers, it has been possible for years for councils to promote a mixed market of private, public and voluntary sector providers. only those community benefits that relate to the subject matter of the contract can

For Example• Leeds City Council has used a wording “Please outline all community benefits your

organisation can offer the Council when providing this contract. Contractors should be aware that be taken into account in the evaluation of any tender.

• The NHS changes have suggested that quality rather than just price should be taken into account during the procurement stage.

• One problem with social clauses is that small firms or social enterprises may find it difficult to qualify e.g. have the capacity for apprentices or training. London Borough of Haringey have a successful model to include small firms and BME groups at all stages of procurement

During procurement

• Using the “Well Being Power” & Sustainable Communities Act - authorities have been able to include ‘social value’ clauses in tenders e.g. that providers participate actively in the economic and social regeneration of the locality.

• Contract performance conditions may relate to social and environmental considerations e.g. provide apprenticeships, training or jobs to the local long-term unemployed.

What we have asked for

• Review the Procurement Strategy Final Version, February 2007 and “Tendering for Work with Derby”  

• Revise the Tendering Threshold upwards from £30,000   A £10,000 p.a. contract for 3 years would be caught by this. 

• Grants rather than contracts where possible (avoiding state aid problems through wide advertising) this gives the Council more flexibility and the applicant less paperwork.

• Split very large contracts into smaller lots which will make them more attractive for SMEs/groups.  To some extent, the Framework Agreements allow this already but we believe that there more scope n this area.

• Referrals to Chamber and DCAN -  Put sources of help within the tender documentation e.g. Derbyshire puts Links (DCAN) as source of help for voluntary groups. .

• “Collaborative Working” invitation with the tender documentation e.g. Derbyshire Children & Young Adults have a one page invitation with the tender to register interest following requests from potential tenderers.

• Qualify the turnover threshold?  e.g. some councils say you have to have over £1m turnover, others that the contract must not be more than 33% of turnover.  This can disadvantage SMEs/groups.

• Briefings and market events re specific contracts

• Joint training on tendering Derby City, Chamber and DCAN.  DCAN has resources it can put into this e.g. room hire, catering, solicitors or other experts. 

• Ongoing and increased dialogue with commissioners/procurement and the Chamber/ DCAN/ Sector 

• More Social clauses in contracts: Derby City already has some questions in the Quality section of tenders designed to capture the ability of tenderers to work harmoniously locally.  These vary appropriately according to the nature of the contract. 

Contact us

Community Action Derby4 Charnwood StreetDerbyDE1 2GT  01332 346266 01332 205069  enquiries@communityactionderby.org.uk www.communityactionderby.org.uk  Community Action Derby is a registered charity number 1043482and a company limited by guarantee number 2994798 registered in England.Registered office: 4 Charnwood Street, Derby DE1 2GT