derry city council

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Social Procurement:Building a brighter future 2013


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Contents

Derry City Council leading the Way on Social Clauses

Delivering support where its needed

Derry City Council Social Clause Delivery Forum

Social Procurement - the Good, the Bad and the Law!

Social Clause - success at the Guildhall

Sights set on success

Making social clauses work

Building bridges for sustainability

How Kickstart can help

Social clauses, the tools to tackle inequality

CLES - the way forward

Derry City Council Business Development Programme

Social Clauses The Strategic Investment Board view

NILGA

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www.derrycity.gov.uk/kickstart

Derry City Council leading theWay on Social ClausesDerry~Londonderry is embarking on an excitingjourney as a city which, as it evolves, offersa compelling and exciting opportunity fordelivering transformation and regenerationthrough sustainability.

We are confident that sustainability will driveprosperous and cooperative change. It is aboutinvesting in our future, creating a reliable senseof self worth and pride in our people and our

city, as well as using resources effectively andwisely to attain maximum benefit.

Social procurement has become increasinglyimportant for public bodies given the currenteconomic climate, but to date it has not beenutilised efficiently. In Northern Ireland alone,we are spending over 2.5 billion in publicprocurement, and recent reports by theNorthern Ireland Audit office (NIAO) have statedthat procurement is a significant area of public

sector expenditure where savings can be made,and value for money achieved.

We can begin to address this issue bydeveloping smarter procurement processesthat will not only support economic growth,but will deliver other important social andenvironmental benefits. As public bodies weconstantly strive to make efficiency savingsand ensure that spending choices reap widereffective outcomes, such as:

Creation of new jobs and apprenticeships,while sustaining existing ones

Contribution to tackling issues such asworklessness and deprivation

Supporting the creation of new businesses

Boosting spending in the local economy andon local services

Kickstarting the ProcessThe Kickstart to Work Programme is alreadyleading the way in social clause projects inNorthern Ireland, working directly with some

of the leading construction companies such asGRAHAM, SIAC, H&J Martin and FP McCann, ona number of successful construction projects.These include the A2, the Peace Bridge,Ebrington Parade Square, and more recently theGuildhall Renovation project, creating a total of26 full time jobs and apprentices through socialclause initiatives.

The inclusion of social clauses will maximise the

socio-economic impacts achievable through thesignificant investment in Derry~Londonderry.This will be accomplished by targetingmeasurable and monitored employmentopportunities and socio-economic outcomesin those areas and communities classedas the most deprived, and providing a widerange of social return and investment for localbusinesses.

Challenging Times

In these times of austerity Derry~LondonderryCity Council is continually seeking ways tobuild the local economy through procurementactivities while incorporating the Best Valueprinciple. We have sourced some excellent UK

Our mission statementDerry City Council will deliver strategicleadership, in developing the City and Regionsustainably through the Regeneration Plan,by ensuring service delivery excellence in allDerry City Councils functions and by ensuringmeasurable benefits are targeted at the mostdeprived groups.

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examples of ways in which we can achievemaximum benefit for the Citys economy tocreate training and employment, while ensuringour local businesses can take advantage ofthe trade opportunities that will be presented

during City of Culture 2013. We are workingtowards growing the local economy, building abetter future and tackling social disadvantage inour communities.

In the face of the local and global economicchallenges that exist now, our social objectivesare more critical than ever and it is vitalthat we deliver the maximum level of socialreturns possible from the public investmentDerry~Londonderry is currently experiencing.

Unemployment is at an all time high, youthengagement in employment and training is atan all time low and the need for opportunitieslike apprenticeships is increasingly urgent. Atthe same time public spend in the City hasincreased with the implementation of the OnePlan and the regeneration of the Ebringtonand Fort George sites. This level of spendcan generate specific and measurable socialoutcomes that will add value and address socialdisadvantage in deprived communities.

We want to raise the bar here inDerry~Londonderry on how we procure, bothin construction and in supplies and services.We want to create an environment whereoutcomes which advance social inclusionexist at the forefront of the minds of thosecommissioning, procuring and tendering forpublic contracts. We want to work with all ofthese organisations to foster an environmentthat welcomes and incorporates the concept ofsocial clauses. We are determined that all ourpeople who are responsible for procurementwill develop the expertise safe in the knowledgethat it is an approach which is based on bestpractice in public procurement law.

We have also been working to grow the localeconomy by linking procurement with localeconomic development. Derry City Councilwould like to understand more effectively

the benefits of their procurement spend; anddevelop stronger procurement and economicdevelopment relationships to ensure everyprocurement decision brings maximumbenefit for the Derry~Londonderry economy

and importantly meets emerging best valuelegislation.

By taking steps to integrate social clauses intoour procurement policy and advocate a high

level of Corporate Social Responsibility webelieve that we can capture the appetite forthe creation of more employment and trainingopportunities for those furthest from the labourmarket in areas of high social need.

The mutual support and commitment fromkey bodies such as the Central ProcurementDirectorate, the ECNI, SIB and NILGA is vital forcontinued success.

Context for the use of SocialClauses

The Programme for Government 2011-15 forNorthern Ireland contains a commitment toinclude social clauses in all public procurementcontracts. Guidance has already been producedin Northern Ireland and elsewhere, which shouldensure that a wealth of advice is available onhow socially-minded public procurement can be

done well.

Derry City Council is currently developingrelationships with public procuringorganisations, to ensure that every decisionfor Derry~Londonderry realises its maximumpotential for the city and the local economy togenerate employment opportunities for City ofCulture 2013 and beyond.

The One Plan a blueprint forregeneration

The Regeneration Plan for the City the OnePlan advocates the use of Social Clauses in allPublic Procurement Tendering (constructionand supplies and services) stating that atransformational approach is the use of socialclauses as a means of providing employmentand/or training for those furthest removedfrom the labour market by companies tenderingfor public sector contracts in construction andsupplies and services.1

1 The One City One Plan One Voice the Regeneration Plan forDerry ~ Londonderry p 5


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Derry City Council, under the auspices ofthe Social Clause Delivery Forum, has themechanism to provide a clear route for publicbodies wishing to include such clausesin contracts. We can help to ensure thatorganisations are aware of the key issueswhich need to be addressed if these clauses

are to deliver results while complying withEU procurement law, and incorporate a highelement of social responsibility into publicsector procurement.

Derry City Councils Social Clause DeliveryForum held their inaugural meeting on Friday5th March 2010. The aim of the forum is toraise awareness and forge links betweenpublic sector organisations, the constructionindustry, sub-contractors and the unemployed,by working directly with contractors to bridgethe gap between their needs and those of theunemployed. Social clauses are implemented bydeveloping a range of measures to assist publicsector organisations to include the social clauseof targeting recruitment and training in all capitalworks projects in the Derry City Council area.

Membership

The forum has representation at SeniorProcurement Management level from allgovernment departments and organisations,including DCC, Ilex, SIB, WELB, ECNI, DoE, DSD,

CPD, CITB, DEL, Trade Unions, NI Water, WHSSB,NIHE, INI and Political Members. The forum willoffer scope to convene sub-groups/task groups

for initiatives or invite guest attendees fromsupport agencies and Government departmentsas requested by Forum members.

Leading the way in NorthernIreland

Derry City Council was successful in establishingthe first ever Social Clause Delivery Forum(SCDF) in Northern Ireland, and high attendance

rates at the meetings became evident as thesocial clause concept gathered momentum.The SCDF as a Civic Leader acts as anindependent and impartial forum representingall sections of the community.

The Peace Bridge social clause element of theproject was nominated for a Business in theCommunity Annual Business Award in the Local

Community Impact Category the project wassuccessful in achieving Highly CommendedStatus at a Award Ceremony in the WaterfrontHall in Belfast on 9th June 2011.

Delivering support where its needed


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To maximise the opportunities from linkingthe procurement of work and services to theachievement of best value for money with thesocial inclusion agenda and local regeneration

activity, as outlined in the One Plan Objectives Toshapeanddeveloptheinclusionand

implementation of Social Clauses in publicsector procurement policy, strategy,processes and contracts.

Todevelopandpromotearangeofinitiatives and activities to assist publicsector bodies to implement social clauses/sustainable procurement to:

Create new jobs, and apprenticeships,

and sustain existing ones Contribute to tackling issues such as

worklessness and deprivation

Support the creation of new business

Increase business capacity of existingbusinesses

Boost spending in the local conomy

Topromoteeconomicdevelopmentandgrowth

Toraiseawarenessandsharebestpracticemodels across the public sector

Todevelopmechanismstomeasureandmonitor results

Derry City Council SocialClause Delivery ForumTerms of Reference

Derry City Councils Kickstart to WorkEmployment Programme continues to befunded until 2015 to further the concept ofthe social clause of targeted recruitment andtraining for inclusion in public sector contracts.

To date the Job Brokerage Officer andKickstart Team have acquired a high level ofknowledge and expertise to work directly withcontractors at an operational level on thesuccessful implementation and delivery ofsocial clause initiatives. We hope to use thatexpertise to make social clauses work at theiroptimum level to deliver results that resonatethroughout the entire community.

SocialProcurement -

the Good, theBad and the Law!Stuart Cairns is a partner with Pinsent MasonsLLP, who specializes in major infrastructureprojects and procurement law, and he hasadvised extensively throughout the UK andIreland. He is one of two external members of

the Procurement Board for Northern Ireland.The Board is chaired by the Minister of Financeand represents all Northern Ireland GovernmentDepartments.

Social procurement can be a powerful tool, bothfor advancing sustainable development and forachieving social and environmental objectives.

by Stuart Cairns and Elaine McLeanPinsent Masons LLP

Public authorities are major consumers inEurope and in the UK alone, approximately109.88 billion of regulated procurements areadvertised annually. By using this purchasingpower to opt for goods, works and servicesthat also deliver social outcomes, publicbodies can make a major contribution toachieving economic development, minimisingenvironmental impacts and tackling socialdisadvantage.

Given the current economic climate, socialprocurement has become increasinglyrelevant for public bodies. At the sametime, it is becoming a more prominent issueat government level and in Scotland thegovernment is currently looking at how best toaddress this issue as part of its ProcurementReform Bill (which began life as the SustainableProcurement Bill).

Despite this, some public bodies remainwary of incorporating social issues withinprocurement, and a lack of guidance in thisarea understandably makes it more difficult to


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develop a robust approach. Its easy to dismisssocial procurement as being in the too difficultcategory, but it can make a great difference topeople, service delivery and the bottom line.

Navigating the lawConcerns about breaching UK or EUprocurement rules have prevented some fromincluding social benefits in public procurement.But public bodies can legitimately requiretenderers to offer social benefits, as long asthey operate within the relevant legislativeframework.

The primary sources of law (the EU Public

Procurement Directive 2004/18/EC and thePublic Contracts Regulations 2006) clearlyrecognise the possibility of incorporating socialbenefits into public procurement, althoughunfortunately they do not provide definitiveanswers as to how this might be done.

One of the key debates when consideringintegrating social benefit into procurement, iswhether or not it is appropriate to use social

benefits as award criteria, and therefore as partof the decision as to who to award a contract to,or whether to address these by way of contractconditions.

Determining which approach is best must bedone on a case by case basis. A single approachwould not work for any public body. Eachcontract must be looked at on its own meritsand many different factors will be relevant

when deciding how to best proceed. Theseinclude:

the value of the contract;

the nature of the contract (ie. whats it for?)

whether it is a regulated or unregulatedcontract

what types of organisations might beinterested in it?

At its simplest, a social issue may be an awardcriteria if it is linked to the subject matter of thecontract. In such circumstances public bodieswill be able to take into consideration suchmatters at every stage of the procurement u


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including - for example, at selection (in terms ofthe bidders experience) and at award (in termsof the bidders proposals to deliver a socialbenefit).

If this is not possible, it is still permissible toimpose performance obligations on a successfulcontractor through contractual obligations,which if effectively monitored and assessed, canbe very successful. In certain circumstances,it may even be possible to combine bothapproaches.

As with many elements of procurement law,there is limited guidance on how to establishwhether something is or is not linked to the

subject matter of the contract. Thereforecare should be taken to analyse what is beingcommissioned, what social return you hope tosecure, and whether it can be properly statedthat the social issue is linked to the corerequirement of the contract.

Making social procurementwork

In order to make social procurement work forindividuals and communities, they must:

ensure social issues are considered at theoutset of a procurement process;

engage the market at an early stage marketcontact is a powerful tool for exploring thecapability of the market-place to deliver socialbenefits;

identify social benefits within contract notices

- this is not only a legal requirement but theopportunity to put such matters firmly at theforefront of your procurement;

ensure that where social benefits are notlinked to the subject matter of the contract,they are addressed only by way of contractconditions;

ensure social/environmental benefits areproportionate to the value of the contract;and implement an effective method to

monitor contract implementation.

Family run business H&J Martin Ltd have anestablished reputation as one of the leadingcompanies involved in local building andrestoration work, enhancing a number oflandmark buildings, including Belfasts CityHall. They are currently working in conjunctionwith Derry City Council to deliver the first evervoluntary social clause initiative on Phase II ofthe Guildhall Restoration project.

Divisional Director at H&J Martin, GeraldineGordon, said the experience to date has been anextremely positive one. H&J Martin recognisethe importance of providing opportunities forthe long term unemployed and apprentices aspart of our wider commitment to society, sheexplained.

The social clause process formalises thiscommitment and ensures tangible results. We

have found working with Derry City Counciland establishing a process to implementsocial clauses extremely beneficial to us as acompany, and this experience will be invaluablewhen tendering for future projects.

Chris Fletcher, Project Manager at the Guildhallsaid: Through the Kickstart to Work programmeand the dedicated Job Brokerage Officer wehave received a great deal of support at everystage of the process, from recruitment and

selection to ongoing advice and mentoring.The project is now at an advanced stage, withPhase 1 successfully handed over in February2012. H&J Martin are currently working with

Social ClauseSuccess atthe Guildhall


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Consarc design on Phase 2 of the multi-millionpound project, which will form a centrepiecefor the 2013 City of Culture celebrations on itscompletion in the coming months.

Some of the key features of Phase 2 will includea new Tourist Information Point (TIP) for thecity located in the current Mayors Parlour,a dedicated exhibition area, and a new cafeon the ground floor with outdoor space on tothe Harbour Square. The main hall will alsobe newly refurbished to increase events andtourist opportunities. Electrical Apprentices Vincent Callaghan and Stephen Bryson withStephen McElroy, Foreman for GR White Electrical, Sub Contractor on the

Guildhall Renovation Contract

Sights set on successI would like to say how lucky and privileged Ifeel to be given the opportunity to work locally

on such a prestigious and complex restorationproject such as the Guildhall.

Since joining H&J Martin as site engineer I havebeen promoted to Assistant Site Manager,and gained valuable managerial experiencethroughout my temporary employment period.I now hope to secure a more permanentposition in the near future with H&J Martin.

Since joining the contracting team we havemanaged to score an impressive 37 out of 40for the Considerate Constructors Scheme audit,in which I played a key role. As a result, this has

enabled H&J Martin to qualify for a nationalaward under the Considerate Constructors

Scheme in the UK.

Ryan Gillespie, H&J Martin


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At GRAHAM we realise that our success as abusiness depends not just upon the successfuldelivery of profitable projects, but also on ouroverall responsibility to society. These economic,social and environmental responsibilities definethe values and principles that govern the waywe operate as an organisation and how webehave as individuals.

For us then, the introduction of social clausesinto many of the contracts for which wevetendered in recent years, has been no majorobstacle. In fact, we see it as an extension andperhaps a formalisation of our normal practice.It is something we welcome, in that it will helpfocus companies on considering and addressingtheir wider responsibilities to society.

It is, in theory, the right thing to do. However

in practice, we believe that there are somepositive improvements that could be made toenhance delivery and encourage best practice.To date, these social clauses have largely been

focused on the creation of apprenticeships andjobs for the long-term unemployed. Howevertoo often the targets have been set withoutfully understanding local community needs,and the practical implications for contractors inmaintaining sustainability within short contracttimescales.

This can result in programmes being designedwith the best of intentions and falling short ofthe mark, which leads to disenchantment fromall sides.

Consultation is crucial

This can be avoided with proper consultation,partnership and education. This will save thepublic purse and demonstrate the true potential

of social clauses for all involved. Perhapswe should take our lead from the ScottishGovernments Sustainable Procurement Bill.The NI Assembly has rightly included socialclauses in the current Programme for

Image courtecy of Big Fish Design

Tasked with the construction of Derrys iconic Peace Bridge GRAHAM faced a number ofchallenges in meeting the complex demands of the social clause included in the contract.GRAHAM is a privately owned company operating in the construction, asset managementand project investment markets and has a network of offices throughout the UK and Ireland,employing over 1,000 staff. Here they outline some of the pitfalls of social procurement, but howoverall, the positive impact on society is certainly worth striving for.

Making social clauses work


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Government, but in order for this to workeffectively, consultation needs to happen on anon-going basis with all interested parties, fromthe local communities that will be affected byconstruction projects to the business and social

economy sectors. This will ensure consistent,fair and transparent processes that supportlocal businesses and encourage partnership andcollaborative working.

Achieving sustainability

One of the key outcomes for contracts withsocial clauses has to be sustainability ofemployment. I believe the current procurement

structure doesnt take account of the complexnature of this issue.

A key question of course is how sustainableit is to invest in training new workers to fulfilsocial clauses, when we have a glut of trainedand unemployed construction workers seekingemployment. Perhaps some social clausesshould focus on getting trained workers backinto employment.

These issues deserve a long-term solution.Local projects are not always awarded to thesame contractor. By using innovative measuressuch as contractors seconding workers from acentral source, employment could be sustainedand training targets met. This would alleviatethe issue of needlessly increasing labour supplywhen demand remains limited. It would alsoreduce the disillusionment of individuals beingtrained without long-term prospects.

The whole social clause debate is a relativelynew one for Northern Ireland but unless weaddress the issues now, the situation will notimprove. I believe that public sector procurersneed to take cognisance of all the issues andpotential solutions and develop a standardapproach that can maximise benefits for allstakeholders.

Michael Graham,GRAHAM Construction

A cohesive approach

In summary, social clauses are still in theirinfancy here. I believe they are the rightway to go, but the devil, as always, is in thedetail. Government has a duty to optimisethe potential benefits and more importantly,mitigate against the potential harm which could

be caused by making social clauses little morethan a box-ticking exercise that is meaninglessand unsustainable for all involved.

In the end we need to work together to producereal results that will create a lasting impact andgrowth, and I believe we can do that throughconsultation and communication to create awin-win for business, the community and widersociety.


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Building bridges for sustainability

Working in partnership with Kickstart targetsin excess of Government guidelines wereagreed and GRAHAM were set the target ofrecruiting 12 long-term unemployed individualsto fill permanent roles. The challenges facedby GRAHAM were heightened by a number of

factors, including: The low labour requirement on the contract.

The bulk of the contract value, against whichthe targets were set, was the actual steelstructure - and this was constructed off sitein Wales

No established mechanism for formal public/private collaboration of this nature

The accepted need for added value

Political pressure at the local and regional

level to successfully demonstrate sustainableconstruction

Socio-economic regeneration- the challenges

The programme supported the integrationof the economically inactive back into theworkplace and promoted employment

opportunity amongst disadvantaged groups.

GRAHAM employed a Community LiaisonOfficer (CLO) who also happened to be longterm unemployed, who developed links withschools, local businesses, wildlife groups,local communities and nearby residents.Her role involved organising and managingvisitors to the site and establishing formallinks with all relevant stakeholders. The newOfficers personality and knowledge of the localcommunity were ideally suited to this new role.An example of how the programme successfullypromoted local involvement, was a communityengagement project in the form of a school

The Peace Bridge Project in Derry was the first Northern Ireland Public Procurement Contractwhich included a social clause. As a successful contractor involved in the project, GRAHAM

had to ensure and demonstrate commitment to local employment, community engagement,environmental best practice and all whilst delivering best value.


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The Kickstart to Work employmentprogramme really helped me. After beingout of work for a while, they helped me topick myself back up again and gave me

the confidence to enrol in night classes forBook-keeping and Payroll.

When a Social Clause was written into thecontract for Graham Construction on thePeace Bridge project, Kickstart guided methrough the application and recruitmentprocess, which resulted in a position offull-time employment with Graham. Thementoring service provided by Kickstartalso helped me to settle into my new role

and I then enrolled on a two-year HNC inAdministration and IT course.

I have now graduated and already started apart-time degree in Business Administrationat Magee. I am still employed by GrahamConstruction and Im so grateful for the helpand support that Mena and the Kickstartteam have given me.

How Kickstart can help

Building confidence,boosting opportunity

drawing competition, entitled What will the Citylook like? which had some terrific entries.

This focus on stakeholder engagement benefitsnot only the client and contractor whilst thework is under construction, but also helps withcommunity acceptance and ownership of theirnew space, now enriched with such a symbolicand iconic civil engineering structure.

By working in partnership with Derry CityCouncil we were able to tap into the concernsand issues facing local people and developour response to meet those needs, creating aproject with benefits for all involved.

Aishleen McLaughlin

Image courtecy of Elene Michaelides and DVCB


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Inequalities exist in our society for a multitudeof reasons. Barriers can spring up from manysources, such as a lack of education or trainingopportunities, social deprivation, or becauseof personal economic circumstances. Andalthough significant changes have occurred inour society, those inequalities still resonate andhave a negative impact on our communities.

The Equality Commission believes that it isimperative to work to remove inequalities toensure that everyone has an equal opportunityto reach their full potential.

Through the use of social clauses, publicauthorities have an important chance tomeet the needs of the diverse communitiesthey serve and to instigate positive changewithin our society. These social clauses cansignificantly impact on the successful deliveryof greater equality and social inclusion, as wellas sustainable employment.

Both European and domestic law provides forthe inclusion of social clauses in procurement

contracts. Conditions concerning socialconsiderations can include factors such as:

The employment of people experiencingparticular difficulty in achieving integration

A requirement to recruit long-term jobseekers, or more disabled people

Implementation of training measures for the

unemployed and young people Provision of apprenticeships.

These contract conditions are permittedprovided that they are compatible withcommunity law.

In order to effectively contribute to theachievement of sustainable development inNorthern Ireland, public authorities should seekto establish and maintain positive relationshipswith local contractors, encouraging themto take steps towards preventing unlawfuldiscrimination and promote equality ofopportunity.

Public expenditure in Northern Ireland has thepotential to have a significant impact on society,on communities and on individuals who findit extremely difficult to access employmentand training opportunities. There must now

be a cohesive and determined approach toinstigating positive change using the resourcesat our disposal, and making them work for thegood of our local communities.

Social clauses, the tools totackle inequality Donal Collins Equality Commission


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Over the last five years the Centre for LocalEconomic Strategies (CLES) has been carryingout research work and advising local authoritiesabout the importance of linkages betweenpublic procurement and local economicdevelopment.

Our work began as a result of three keyfrustrations. Firstly, the UK government spends

around 260billion each year upon buyinggoods and services, with local governmentspending 70billion. We felt there was no realunderstanding of what impact this spendhad, and importantly the knock on benefits itbrought for local economies.

Our second concern was dispelling some of themyths surrounding procurement policy andpractice, namely the types of locally reflectedadded economic and social value which can be

brought through the process, mostly as a resultof European Procurement Law.

Finally, procurement is one of the key leverswhich devolved departments and local

authorities can implement to tackle economicand social challenges in communities, includingworklessness, low skills, and businessdevelopment; we wanted to promote this lever.

Our work has therefore focused on a numberof approaches: developing a tool throughwhich the impact of procurement spend canbe measured; identifying what authorities can

do in the commissioning and procurementprocess to maximise local economic, socialand environmental benefit; and working witha specific authority to embed local economicbenefit in their procurement principles.

The Local Multiplier 3 model presents astraightforward means by which authoritiescan explore the impact of their spend upontheir local economy. This is undertaken throughassessing spend with local suppliers and local

employees; the re-spend of suppliers upon localsuppliers and employees of their own; and there-spend of employees in local shops.

Improving policy and practice

CLES -the way forwardMatthew Jackson is Head of Research at CLES,the UKs leading membership organisationfocused on local economic development

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Business DevelopmentProgrammeLocal businesses have been offered theopportunity to maximise their potentialthanks to a new support programmelaunched by Derry City Council.

The Business Opportunities Programmeoffers local companies the chance to availof a range of practical initiatives gearedtowards equipping them with the skillsand confidence, not only to maximise thebusiness opportunities presented by Cityof Culture status, but also to increase theirsustainability and growth beyond 2013.

The team are working to ensure thatlocal businesses are aware and have an

understanding of sustainability, and inparticular how to maximise public sector andbig business procurement opportunities.

As part of Derry City Councils procurementsupport, Oppshop the first online platformof its kind in the UK and Ireland has beenlaunched geared to providing local businesseswith easy access to information on all localgovernment tendering opportunities.

Local businesses are encouraged to registeras an Oppshop user to receive updates onnew business opportunities connected withtheir specific area of expertise.

Local businesses can get more informationby contacting the Business Opportunitiesteam at;

www.derrycity.gov.uk/businessopportunitiese: [email protected]

t: (028) 7136 5151 (ext 6927)

Range of approaches

Our work with the Federation of SmallBusinesses has highlighted the range ofinitiatives that authorities can introduce in

procurement strategy, pre-procurement, andservice delivery to support small and localbusiness to compete in the procurementprocess and maximise benefit. This includes thedevelopment of portals, inserting clauses intocontracts, and monitoring the local impact ofspend.

Our work with Manchester City Councilhas demonstrated how an evidence based

understanding of spend, and more effectiverelationships cross-departmentally andwith the supply chain, can lead to suppliersembedding practices that are reflective of localeconomic and social issues.

Recently in Northern Ireland, CLES has beenhighlighting the benefits that can be achievedthrough the process of procurement. We havedelivered workshops for the Department ofEnvironment and local Councils in Belfast and

Derry, focused on influencing the ways in whichpublic authorities think about procurement.

Progressive thinking

The purpose of the workshops has been tomotivate public authorities in Northern Irelandto think more progressively about procurementand change the culture of how procurementteams operate. This has not necessarily been

about inserting social clauses into contracts,as now advocated in the Best Value (NorthernIreland) Order 2012, but about adoptingprinciples in the practice of procurement whichreflect local economic, social and environmentalissues.

We are hoping that the whole culture ofprocurement can change, shifting the focusfrom cost to adopting an approach whichbalances the need to be efficient but also

effective in meeting local economic and widersocietal outcomes.

Sign Up!Oppshop Derry~Londonderryhas tender opportunitiesfor you!


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Derry City Councils Business Opportunities team, Louise Breslin, Tara Nicholas, Danielle McNally, Gemma Scarlett and Emma McLaughlin, on handto provide local businesses with advice and support throughout 2013.

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Follow us on twitter @Oppshopderry www.oppshop.co.uk

On Oppshop you will

find the latest business

Opps as they come on

stream from Oppshop

Derry~Londonderry

partners - Derry City Council,City of Culture Company and

Ilex - the Urban Regeneration

Company.

Register at www.oppshop.co.uk

to receive your tender opportunity

email alerts!


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The Northern Ireland Executive, in itsProgramme for Government 2011/15,committed to the joint objectives of growingthe economy and tackling social disadvantage.

Given the current local and global economicchallenges it is vital that public spendingmaximises the social and economic impactthat public investment can deliver. One of themost effective means of helping ensure this isthrough the inclusion of Social Clauses into allpublically procured contracts.

Over the period 2012/2015, the Executive willinvest 3.8 billion in delivering and improving our

public services and infrastructure. SIB believesthat this level of spend can act as a significantlever to increase employment and training, targetthose in greatest need and generate specific andmeasurable social outcomes.

In keeping with the Executives determinationto raise the bar here in how we procure, bothin construction and in supplies and servicescontracts, SIB fully supports this objective

given its role in advising the Executive on itsInvestment Strategy for Northern Ireland.

The use of Social Clauses in procurement alsoopens up the opportunity for those involved

in the social economy sector to compete on alevel playing field in tendering for contracts.By taking steps to integrate social clausesinto procurement policy, it is clear that

supplementary social benefits will, in manycases, be created by the tendering companies;this will mean more employment and trainingopportunities for those furthest from the labourmarket and in areas of high social need.

Social Clauses Toolkit; Delivering SocialBenefits in Publicly Procured Works, Suppliesand Services Contracts

The toolkit provides an understanding of the

legislative framework within Northern Irelandand outlines a step-by-step approach toachieving tangible benefits to your locality.A number of case studies accompany theaccounts of integrated social benefits anddemonstrate how other procurers haveintegrated social benefits into contracts.

The overall aim of the toolkit is drive andinfluence cultural change in how procurement

is commissioned and delivered to maximise thesocial return on public sector investment.

Further information available at:www.sibni.org

Social Clauses The StrategicInvestment Board view

Strategic InvestmentBoard Northern Ireland

Kenny Knox SIB


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NILGA welcomes strongly the social clausework and developments which are spear-headed by Derry City Council.We are also working in this crucial areato ensure accountable, local procurementinitiatives and the development of capacityin the small business sector, are rolled out,

in keeping for example with a model used bylocal and regional government in Wales. Weare partnering with the Federation for SmallBusinesses in this regard.Similarly, looking at the local governmentsectors Improvement, Collaboration andEfficiency programme we realise as clearly asDerry City Council do that the cost and valueof social clauses and local procurement are ofequal importance, in terms of value for money,and social cohesion.

NILGAs Annual Conference inDerry~Londonderry on 28th February 2013 had,

as one of its themes, the importance of councilsinvesting in and with local communities. It is acorporate driver of NILGA and Derrys work istestament to how local is best and is provento be.

The aim of the conference was to showcaseand advocate the roles and future roles of

community centred, effective and innovativecouncils in Northern Ireland. Aiming toencourage the sector to be pioneering in theirdelivery of the change agenda, whilst keepinga key focus on the efficient delivery of qualityservices to citizens and sustaining localeconomies.

Further information available at:www.nilga.org

NILGADerek McCallan CEO


20/20

Front cover image courtecy of DVCB

Back cover image courtecy of Big Fish Designwww.b

igfishdesign-ad.com

Derry City Council

98 Strand Road

DerryLondonderryDoire

BT48 7NN

t: 028 7130 8466


This Project is partly funded by theEuropean Social Fund and the

Department for Employment and Learning.

The Department of the Environment made the Local Government BestValue (Exclusion of Non-commercial Considerations) Order (NorthernIreland) 2012 (S.R. 2012 No. 271), which came into operation on 4 July 2012.

The Department has produced associated guidance on the Order which isavailable at:

www.doeni.gov.uk

CPD Contact InformationCentral Procurement DirectorateClare House303 Airport Road WestBELFAST

BT3 9ED

www.dfpni.gov.uk/cpdemail | [email protected] | (028) 9081 6200

derry city council

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