Transcript Increasing apprentice and employment opportunities through

Increasing apprentice and
employment opportunities
through procurement and
contractual clause
Diane Martin/Olwen Maddison
Hartlepool Borough Council
Nov 2011
Is it legal?
 Supporting policy framework; community strategy;
procurement strategy; best value.
 Meets the requirerments of EU legislation through
Sustainable Development includes `social
progress that meets the needs of everyone`
 Social Inclusion and community well-being: core
requirements of Community Strategy
 Procurement policy: if you want an outcome you
should include it in all stages of procurement
Why use procurement?
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Available to a wide range of bodies
Flexible: can be designed for specific contract
Enforceable
Durable
Can be used to implement legislation/policy
Fit well with good procurement practice – relative
to voluntary agreements
 Avoid `state aid` problems associated with grants
Procurement Legal & Policy
Framework – UK Govt
 Purchasers are free to decide what they buy
subject to
- powers and established policies
- `business case assessment` - affordability
- the requirements must not be discriminatory
 Where social issues are part of the core
requirement
- can be used to assess the technical capacity (at PQQ
stage)
- can be used in the award of the contract
Procurement Legal & Policy
Framework – EU
 New Directive: can include social matters in
procurement
 Requirements must not disadvantage nonlocal contractors e.g.
- by referring to `local labour`
- by referring to UK qualifications
 Procurement procedures must be followed
e.g. mention in OJEU Notices
Procurement Legal & Policy
Framework – LAs
 Baseline - S.17 of the 1988 Act :labour force
matters a non-commercial consideration
 Order in 2002 set this aside where necessary to
deliver `best value`: this depends on policies
 ‘Well-being’ provides the powers
 Community Plan, Procurement Strategy,
Corporate Strategy – provide policy basis
 Comply with EC requirements & equal opps.
requirements
Recommended Approach
 Identify policy basis for action
 Include at earliest stage of procurement
 Include as core requirement whenever
possible
 Avoid ‘local’ referencing in the spec.
- target in other ways e.g. trainees
- name sources that are available to any
contractor
A Suitable Approach
 Focus on simple requirements that meet the
target communities needs.
 How will any additional costs be met?
 Set measurable targets: check these can be
supplied within available resources
 Targets must be deliverable in the context of
other contract requirements
 Select requirements that you have the
resources/technology to monitor and verify.
Organising the Supply-chain
 Training and job-matching organisations are
the supply-chain for trainees and workers
 What they have available impacts on the
costs and deliverability for contractors
 Design your specification with the supplychain in mind
 Publicly-funded supply chains are unstable:
this is a problem for long-term contracts.
Good Practice Requirements (1)
 Include TR&T early in the procurement
 Requirements must be clear and
measurable
 This produces a ‘level playing field’
 Include monitoring requirements in the spec
 Consider how costs are to be treated
 Disclaimer: contractor responsible for
engagement & work even if client facilitates
Good Practice Requirements (2)
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Appropriate in type & scale for the contract
Address priority needs in target community
Fit with the labour/trainee supply set-up
Use appropriate measure: person-weeks rather
than jobs?
 Provide information on the latter
 Must be affordable
 Use a pro-forma method statement to get
commitment
Benefits of a Method Statement
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Submission a requirement of each valid tender
Ensures that contractors give this thought
Sets standard information that each has to provide
This can include net cost calculation
This makes scoring easier
Provides basis for clarification & contract
conditions
Typical Requirements
Provide a method statement using the pro-forma
provided setting out how the following
requirements will be delivered:
 …% or ... No. of person weeks to be delivered by
new entrant trainees recruited from…. agency
 Each trainee to have a written training plan
 All vacancies to be notified to … agency
 One week prior to each site meeting provide a
written report covering the following items…
 Retain for inspection by the client the evidence to
support the written reports.
Planning & Development
Agreements
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Recruit new trainees: numbers / ftes
Notify all vacancies to named agencies
Local supply-chain opportunities
Work with agencies named by the LA
Provide output data on a pro-forma
Deposit sum before commencement: money
repaid as outputs are achieved?
 Deposit sum payment is phased (with land
transfer) or annualised.
Hartlepool Case Study
Hartlepool Borough Council: HBC Economic Development/Housing Hartlepool (2005-2010)
Housing Refurbishment Programme
Housing Hartlepool
Hartlepool Working Solutions
Gus Robinson
Wates
HCFE
Workstream Manager (Building Futures-CEI)
Client Source/Screening
Hartlepool
Working
Solution
(VCS)
Building
Futures
Monthly/Quarterly
reports (CEI)
Skills. numbers
Workstream Manager
Assessment
Training/Funding
requirements
(JCP/LSC/NRF/ESF/Sin
gle Prog)
Client/Contractor
Interview
Employed
Wage subsidy
Train to Gain
Tees Valley: Building Futures Routeways Model 2007-2009
Hartlepool
TRT Agreements
(Hanlon Sector Manager)
W/streamMgr
Stockton
Middlesbrough
hhh
W/sream Mgr
W/stream Mgr
Darlington
W/stream Mgr
Redcar & Cleveland
W/stream Mgr
Client Source
Hartlepool:
Working Solutions
Community Campus
Working links
Jobcentre Plus (MS)
Screening
Stockton:
Five Lamps
Community Campus
Working Links
Jobcentre plus (MS)
Skills Requirements/numbers
Client sourcing/
Screening
New and existing
Building Futures
CEI
(Hanlon Client Manager)
Interviews/assessments
Training needs analysis
Training sourced and
funding identified
Middlesbrough
M’brough Works
Community Campus
Working Links
JobcentrePlus
(MSF)
Darlington:
Training and/or
employment
Intowork
Morrisons
Working Links
Jobcentre Plus
Data from all transactions entered onto Hanlon
Red /Cleveland
Routes to Empl’t
Working Links
Jobcentre Plus
Client/Employer
interview.
Funding agreed
All: Colleges
/Connexions/VCS
Skills Model: Macro and Contract
level
Building Newcastle model
CONSTRUCTION
COST (£ million)
20
OPERATIVES
Carpenters & joiners
Bricklayers
Plasterers
Painters & Decorators
Roofers
Glaziers
Floorers
Specialist Operatives
Scaffolders
Steel Erectors
Plant Operatives
CE Operatives
General Operatives
Electricians
Plumbers
Total
WORK TYPES
SUB-REGIONS
OUTPUT
New housing
Hartlepool
Man years
1
LABOUR
REQUIREMENT
man years
40.0
60.0
12.0
24.0
6.0
10.0
2.0
6.0
22.0
108.0
18.0
34.0
342
1
TRAINING
LEVEL
10%
3 230
TRAINING
REQUIREMENT
man years
4.0
6.0
1.2
2.4
0.6
1.0
0.2
0.6
2.2
10.8
1.8
3.4
34
Case Study 1: Housing Hartlepool
TRT Charter in place
Contractual clause and method statement – targets/outcomes agreed.
Monitoring process, support service and reporting structures in place.
(through Hartlepool Borough Council Economic Development function)
Five year Strategic partnership with Wates Construction, Gus Robinson and
Hartlepool Borough Council
Targets:
120 people employed over lifetime of agreement
60 Apprenticeships
60 LTU to be given employment opportunity
and to up skill
placement opportunity
Achievements to June 2008:
Employed to date :
Apprentices :
155 (149 Hartlepool)
44 (38 Hartlepool)
ECONOMIC BENEFITS:
Targeting and generating re-spend
Saving to the Exchequer (Housing Hartlepool project)
The aggregate number of people accessing employment as a direct result
of TT&E is 149
The minimum wage for calculation purposes is assumed to be £5.52/hr or
£204.24/week and £10,629/year. (The average gross wage for a semi
skilled construction employee is circa £22,000/year).
Based upon the lower income figure and that all were unemployed before
start of contracts the economic benefit generated to date is 10,629 X 149
= £1’583’721.
CURRENT DEVELOPMENTS
 Improved forecast model
 Automated workflow tool
 Generic approach across North East
Councils
 Adopted by North East Procurment
Organisation
 Income generation model – North West
Hants
Q/A
 CONTACT DETAILS
 [email protected]
 Operations Manager – Employment & Skills
[email protected]
 Principal Officer – employment
 01429 284482