Preston City Council will demand major contracts include a 20% social value commitment
Preston City Council hopes to increase the value it delivers for local communities through its new Social Value Procurement Framework (SVPF).
The launch of the framework is part of the council’s commitment to delivering Community Wealth Building in Preston – a people-centred approach to local economic development.
The Social Value (2012) Act requires social value to be considered in all public sector service procurement exercises over an agreed threshold. Public authorities must have “regard to economic, social and environmental wellbeing".
Preston’s new framework aims to improve the council’s existing approach to the consideration of social value in procurement.
When suppliers bid for contracts, they will be asked to demonstrate how they will contribute to supporting the local economy and fair employment, addressing the climate emergency, investing in training, and supporting the voluntary and community sector.
Councillor Valerie Wise, cabinet member for Community Wealth Building, said: “A Community Benefit Framework is already in place for the council’s £45 million Animate entertainment and leisure development and a similar framework has been adopted for the Town’s Fund projects.
“We have agreed that a framework should now be adopted for all council procurement activity and that the weighting of social value in the assessment of tenders should be increased to 20%.
“This is in line with the council’s commitment to Community Wealth Building, and best practice across the UK."
The SVPF will be used in any procurement exercise which is expected to exceed the contract value threshold of £74,999.
The council will expect 20% of the overall assessment score to be allocated to social value. This will be split evenly between an assessment of a supplier’s description of their current commitment to social value, and an assessment of the additional benefits the supplier commits to through the delivery of measures selected from the SVPF.
These measures are grouped under five themes:
- Supporting the local economy
- Addressing the climate emergency
- Promoting fair employment
- Investing in the future workforce
- Strengthening the voluntary and community sector
On award of contract, the supplier will commit to regular reporting on the selected SVPF measures. This will form part of the council’s standard contract monitoring procedure.