Theme 2 of the Social Value Model addresses two government policy outcomes: creating new businesses, new jobs and new skills; and increasing supply chain resilience and capacity. The first of these is likely to appear in contracts where there are opportunities for business creation and growth at tier 1 or in the supply chain, or where the contract involves the recruitment and training of a contract workforce, or is in a sector where there are high levels of unemployment and/or skills gaps, such as construction. There are three award sub-criteria relating to creating new businesses, new jobs and new skills which are outlined below together with examples taken from the guidance on the types of activities which might demonstrate the tenderer’s approach.
Entrepreneurship, growth and business creation
- Identifying opportunities to grow supplier diversity in the contract supply chain or in the community where the contract is performed, including SME and VCSE participation and new business creation.
- Engagement activities for potential new suppliers to the contract supply chain, prior to awarding subcontracts, such as advertising upcoming opportunities and meet the buyer events.
- Measures to make the supply chain working environment conducive to a diverse range of suppliers and growing businesses, such as structuring the supply chain selection process in a way that encourages participation by new and growing businesses.
- Implementing recruitment practices and employment conditions, such as the five foundational principles of quality work set out in the Good Work Plan that will attract good candidates from all backgrounds, minimise turnover of staff and improve productivity.
- Support for the contract workforce by providing careers advice, including mentoring, mock interviews and CV advice, and opportunities for in-work progression and career development into known skills shortages or high-growth areas.
- Offering opportunities for work experience or similar activities.
- Providing apprenticeships, traineeships and T Level industry placement opportunities (Levels 2, 3 and 4+) in relation to the contract.
Education and training
- Support for educational attainment relevant to the contract, including training schemes that address skills gaps and result in recognised qualifications.
- Activities to support relevant sector-related skills growth in the contract workforce, for example careers talks, curriculum support, literacy support, safety talks and volunteering.
- Delivery of apprenticeships, traineeships and T Level industry placement opportunities (Levels 2, 3 and 4+) in relation to the contract.
The second policy outcome, tackling economic outcome, aims to make sure that new businesses, entrepreneurs, start-ups, small and medium-sized enterprises (SMEs), voluntary, community and social enterprises (VCSEs) and mutuals have the same opportunity to tender for public sector contracts as large prime contractors. One way to achieve this is by encouraging prime contractors to support and include theses types of organisations as part of the supply chain delivering the contract.
So for firms bidding for contracts, how does this translate into social value, and how can you demonstrate it through responses? Below are the award sub criteria together with examples from the guidance on appropriate activities which might demonstrate the tenderer’s approach.
Creating a diverse supply chain to deliver the contract
- Plans for engaging a diverse range of businesses prior to appointing supply chain members, including activities prior to award of the main contract and during the contract term.
- Advertising of supply chain opportunities openly and ensuring they are accessible to a diverse range of businesses.
- Structuring of the supply chain selection process in a way that ensures fairness and encourages participation by a diverse range of businesses.
Supporting innovation and disruptive technologies throughout the supply
- Showing an understanding of opportunities to drive innovation and greater use of disruptive technologies, green technologies, efficiency and quality to deliver lower cost and/or higher quality goods and services.
- Creation of a design and tendering environment that is conducive to tenders that offer innovation and disruptive technologies, for example outcomes-based specifications enabling alternative approaches to be offered, and inviting innovative approaches to be proposed and developed.
Support the development of scalable and future-proofed new methods to modernise delivery and increase productivity
- Showing an understanding of scalable and future-proofed new methods to drive greater modernisation of delivery and increase productivity.
- Creation of a design and tendering environment that is conducive to the development of scalable and future-proofed new methods to modernise delivery and increase productivity, similar to those mentioned above.
Demonstrate collaboration throughout the supply chain, and a fair and responsible approach to working with supply chain partners in delivery of the contract
- Putting in place measures to ensure supply chain relationships relating to the contract are collaborative, fair and responsible, for example by providing co-design and creation of services, training and education, and secondment and volunteering opportunities.
Demonstrate action to identify and manage cyber security risks in the delivery of the contract
- Identifying measures to mitigate and manage cyber security risks within the supply chain, such as engaging with the supply chain to identify and build resilience against cyber security risks and actions to raise cyber security awareness.
- A commitment to adopting required technical standards and best practice, such as the ‘10 Steps to Cyber Security’ or Cyber Essentials and Cyber Essentials Plus certification.
The model provides references to a range of additional guidance which potential bidders might find useful when developing ideas including, for example, the Good Work Plan which brings UK employment law in line with modern ways of working, and guidance on cyber security controls, such as the ‘10 Steps To Cyber Security’, Cyber Essentials and Cyber Essentials Plus certification, NCSC Cloud Security Guidance, NCSC 14 Cloud Security Principles and the Technology Code of Practice.
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