Transcript 3Ps: problems & prospects of social enterprise procurement

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