Transcript Document

Involving Local Suppliers
4th February 2013 – 1-5pm, Room 3 Ealing Town Hall
AGENDA
Involving Local Suppliers
13:00 Introductions
13:05 Who is the WLA?
13:15 Presentation – Involving Local Suppliers
14:00 Presentation – London Borough of Harrow
14:45 Discussion Groups
15:30 Presentation – Supply Cross River (SXR2)
15:40 Recording and Measuring Progress
16:30 Discussion
Close
What is the West London Alliance?
A coming together of 6 West London Borough’s to collaborate on service
delivery and procurement for mutual benefit.
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Barnet
Brent
Ealing
Harrow
Hillingdon
Hounslow
+ Tri Boroughs – Westminster, Kensington & Chelsea and Hammersmith & Fulham
http://www.westlondonalliance.org/
The WLA’s purpose
The WLA was established in 1998 as the sub-regional partnership for West
London. Since then the WLA has been working to:
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Lobby for the interests of the sub-region;
Develop collaborative strategies and initiatives on key issues such as transport
and economic development; and
Improve the provision of public services in West London, through sharing
knowledge, expertise and resources, undertaking joint ventures and securing
additional resources.
The WLA is currently facilitating a number of major, collaborative, programmes of
work across West London, through which participating boroughs aim to realise
efficiency savings and service improvements. These programmes include:
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West London Social Care Efficiency Programme for Adults’;
West London Children’s Services Efficiency Programme;
West London Passenger Transport Programme;
West London Property and Asset Management Programme; and
West London Procurement Programme
Background
In 2007 The Sustainable Communities Bill was published backed by research from the
New Economics Foundation and their pressure group Local Works. Their aim was to
try to combat the “creeping homogenisation” witnessed in British towns and a decline
in local communities. They focused on the failure of inward investment to positively
affect the retention of local services and the health of communities. They defined local
sustainability as follows:
Local sustainability means policies that work towards the long-term wellbeing of any given area. That means promoting local economic needs - so
money that is spent locally benefits local shops, services and communities,
not remote shareholders. Or, that the long-term environmental impacts of
any planning or economic policies are central to the process of deciding
whether they go ahead or not. To empower communities and local councils
to make their own decisions on how to make their local areas sustainable.
A number of research papers were published and initiatives followed to increase the
support for Local Sustainability. The SROI Guide 2009 was published in 2009 with
backing from the Cabinet Office. The Public Services (Social Value) Act 2012 enforces
the need to consider how the process of procurement might be conducted to improve
the economic, social and environmental well-being of the relevant area.
Reference
New Economics Foundation http://www.neweconomics.org
NEF have produced guidance material and publications such as “Plugging the Leaks”,
“Securing the Future” and several case studies (all available from their website
including images for presentation – provided that acknowledgement is given). The
NEF also produced the LM3 (Local Income Multiplier) economic tool which looks to
measure the impact on the local economy from an organisation or an initiative.
Business in the Community http://www.bitc.org.uk/community/
Local Works www.localworks.org
Joseph Rowntree Foundation http://www.jrf.org.uk/
Core Cities http://corecities.com/
Social Enterprise http://www.socialenterprise.org.uk/
National Association for Voluntary and Community Action
http://www.navca.org.uk/socialvaluebriefings
Defining Local
What do we mean by Local?
Owned locally? Based locally? Employing local people?
Need for caution:
Knowsley Metropolitan Borough Council in Merseyside used NEF's multiplier tool to assess the
local economic impacts of some of their construction contracts. It was estimated that just 8% of
the Council's expenditure reaches local businesses, a situation the Council was keen to improve.
The Council evaluated two contracts for their local multiplier effects. Contract A was let to a firm
situated just outside the local area, and contract B was let to a local firm. The Council therefore
thought that Contract B would have a greater overall local impact. However, interestingly, the
study showed that the non-local firm had a higher impact on the local economy, with 16% of the
contract income being re-spent locally compared to 11% for the local firm. This might not sound
like a significant difference, but with each contract being worth in excess of £1 million, the
numbers soon stack up. The reason for the different local economy effects between the two
firms is that the 'non-local' firm in fact hired more local staff than did the locally owned firm!
What are our priorities and what are we looking to achieve?
Understanding drivers for the borough –
Job creation and Employment prospects, education & training, economic
sustainability, diversity, community partnership & involvement.
Spend in the local area?
Opportunities for local Suppliers
Can work package be planned or structured to make it more accessible to SME/ TSO?
Will it compromise strategy? Public procurement rules, market manipulation, exclusion
and discrimination.
Are we creating sustainability or dependency?
Capability and contingency, size and risk of the work package
Does the work package require or include skills, specialisms, experience and/or
capacity that an SME or TSO can provide? Can a consortium of SMEs?
Alternatives
Encourage partnership with a TSO or an SME?
Oblige contractors and suppliers to spend locally and support local companies.
Improving opportunities to address underemployment and worklessness with
apprenticeships and work experience? Sharing apprentices?
Supplier Selection
How to find local suppliers? Meet the Buyer? Chamber of Commerce?
What kind of supplier are we trying to reach? Do these networks exist or do
we need to build them?
Directories
https://www.supplyingthesouthwest.org.uk
http://www.sustainweb.org/ethicaleats/localfoodfinder/
Selecting the supplier
A fair and transparent vetting process and criteria, H&S, financial stability and
compliance, adherence to policy and standards.
Suitability of SME/TSOs appreciating the sensitivities and bias.
Reputational and political risk – remembering who we are.
Supplier Development
Accessibility for suppliers.
http://www.wiltshire.gov.uk/how-to-do-business-with-the-public-sector.pdf
Finding our opportunities.
Making procurement process transparent.
Guidance and assistance, post tender evaluation feedback.
Contract Management.
Supplier Development – sustainability not dependency.
Mentoring – by borough staff and within the supply chain tiers.
What else boroughs can do?
How many of us live within the borough? Where do we spend our money?
Healthy Community
Encourage staff to support local businesses and spend locally.
Use local services – post office, library, transport (rural).
Attend community activities – local events, fairs, school, presence in community.
Volunteer - volunteer days, recognition and incentive.
Skill Will http://www.skillwill.co.uk/ links professional and business volunteers with
charities and social enterprises which need assistance.
Skill Share (http://skillshare-westsussex.org.uk/) ,
Ealing Involved (http://www.ealinginvolved.org/)
LESS (http://lessuk.org/)
Mentoring and engagement activities – raising expectations and achievement.
Work experience and placements - if we cannot employ we can make people more
employable.
Questions?
Susan Godfrey MCIPS
West London Alliance
DDI: 0208 825 7613
Mobile: 07718 696 544
Email: [email protected]