Decision details

1.

Title of Item/Report

Procurement Plan Higher Value Contracts and Social Value Update Report

2.

Record of the Decision

Consideration was given to a report that sought approval for the award of planned higher value contracts where the value exceeded the limit on officer delegated authority and which were either funded within the approved MTFP / Capital Programme or were subject to a bid for external funding.

The report also included an update on progress against the Social Value Policy approved by Cabinet last year.

The constitution defined a range of decisions that required a specific Cabinet approval, the financial threshold for which was set at a level of £500k or more. Annex 1 to the report listed contracts that exceeded the financial threshold and had not otherwise been delegated to officers.

Cabinet approved a Social Value Policy in March 2023 and Annex 2 of the report provided an update of the financial proxy value of social value delivered during 2024. Annex 3 of the report provided 2 case studies of social value achieved during 2024. The first was by Change Grow Live (Integrated Substance Misuse contract). A good example of what a small contractor can achieve. The second case study was provided by Esh Construction and covered various schemes across the Borough. Annex 4 of the report provided the list of Social Value measures (TOMs) for reference.

Cabinet noted the inevitable variation in social value delivered which was caused by some large-scale construction contracts which could be affected by the contracting cycle, where there was often a front loading of social value at the start of a contract or due to the very nature of the contract. This variation was normal and did not indicate poor performance. Social Value was particularly high in 2023 due to the amount of demolition waste from the Swallow and Castlegate Centre that was recycled and also the completion of The Sycamores estate.

The approach to Social Value had developed further during 2024/25 and included:

a. Embedded the TOMs measures relating to donating to the VCSE sector which meant suppliers, providers and contractors could donate time, equipment or money to the sector through the Catalyst website. These were linked to the ‘asks’ from individual Catalyst member organisations. £38,301 had been committed to the following TOMs measures:

C-NT15 – Provision of Business advice to VCSEs / SME

C-NT16 – Equipment or resources donated to VCSE

C-NT17 – Number of voluntary hours donated to support VCSEs

C-NT28 – Donations or in-kind contributions to local community projects.

Contract management processes would continue during 2025/26 to ensure the commitments were delivered.

b. Introduced a Social Value calculator for use in direct awards under a framework agreement.

c. Converting an existing Contract Management Officer role to a Social Value Officer to increase capacity to deliver more social value.

d. [Introduced a new TOMs measure for care leavers:

NT4a - No of full time equivalent local 16 – 25-year-old care leavers (FTE) hired on the contract]

e. Working regionally to improve the delivery of social value through NEPO contracts. NEPO had developed a new approach to measuring social value which would be used for those NEPO contracts that do not require a further competition at local authority level. A review would be undertaken during 25/26 to determine the effectiveness of the new methodology and whether to migrate the use of TOMs to this methodology.

RESOLVED that:-

1. The contracts listed in Annex 1 of the report be approved.

2. Authority be given to the relevant Director or Assistant Director to make the specific contract award decision and any subsequent contract variation, annual inflationary uplifts (where allowed in the contract terms and conditions) and extension decision in accordance with the delegations listed in Annex 1 of the report.

3. The progress on social value be noted.

3.

Reasons for the Decision

To enable Cabinet to exercise its strategic oversight of higher value planned procurement projects, in accordance with the constitution.

4.

Alternative Options Considered and Rejected

None

5.

Declared (Cabinet Member) Conflicts of Interest

None

6.

Details of any Dispensations

None

7.

Date and Time by which Call In must be executed

Midnight Friday 21 March 2025