Agenda item

The Leader introduced to colleagues the report on the Council’s use of ‘Themes, Outcomes and Measures’ or ‘TOM’s’ on procurement activity when buying goods and services, which were designed to leverage in ‘social value’ for communities and city.  

The report set out the long list of those core measures to be used when purchasing goods and services.

Newport City Council recognised that the way in which it managed spending with suppliers, service providers and contractors could make a significant contribution to priorities in enhancing the social, economic, cultural, and environmental well-being of the city by securing long-term added value and social benefits which achieved this.

The TOMs achieved this social added value through a measurement framework that allowed for an unlocking of social value through its integration into procurement activity. The methodology was developed in conjunction with the WLGA National Procurement Network and the National Social Value Task Force Wales, which was a cross-sector working group combining both public and private sector organisations.

From a list of over 90 measures in the national framework, the Council’s procurement team worked with officers around the Council to develop a core list of about 45 measures, representing this Council’s ‘long list’ of measures for use locally.

Council tenders for contracts would incorporate a smaller number of these (around 2-5 mainly) which were suitable to the nature of those services and goods being procured and these would be ‘scored’ alongside the other criteria of price and quality. These were shown in the reports Appendix.

Measures in relation to our suppliers ‘carbon footprint’ and its reduction would be required to be used as default. In doing this, it clearly sent a message to all our suppliers and partners that we look to leverage in social and value and other key benefits when spending the Newport pound.

In addition to these specific measures, our tenders would make it clear that as a Council, we strongly encouraged suppliers to pay their staff at least the ‘real living wage’ and information gathered through the TOM’s on suppliers’ performance in this regard as well as ensuring their ‘fair work criteria’ was also robust ensuring their workers were treated with fairness and equality.  

Cabinet was asked to approve the developed Newport City Council Core List of TOMs for measuring Social Value delivery through Commissioning, Procurement and Contract Management and their associated reporting.

Comments of Cabinet Members:

§  Councillor D Davies welcomed the report which ensured the delivery of social values, promoted local supply chain development, and would meet the Council’s wellbeing objectives. The Deputy Leader gave an example of where this would work was prioritising local supply chains where there was an emphasis on employing local workforce.  This would help the Council meet its carbon neutrality objectives within the city.  It would also strengthen key objective one, for education and employment.  Measuring social value in financial terms meant that the return on the investment ratio could be calculated and outcomes could be measured in real terms that were understandable and easily demonstrated.

§  Councillor Hughes recalled the original approval of the overarching framework that went to Council in early 2022 and was pleased with the report put forward to Cabinet, supporting social care value.  The Cabinet Member for Social Services supported the commissioned theme which would create a stronger relationship and promoted social care and work with voluntary organisations and social enterprises.  The report focused more on community than money and healthier, safer more resilient communities in Newport.  It was a tool that would recognise the council’s ambition as a driver or local economy and procurement therefore Councillor Hughes supported the report.

§  Councillor Forsey welcomed the introduction of these measures.  Selecting procurement on price did not consider important aspects such as supporting people locally.  The Cabinet Member for Climate Change and Biodiversity also considered the report supported jobs, training opportunities and good working conditions.  Councillor Forsey highlighted the environmental benefits of these measures.  Procurement was one of the hardest to tackle sources of greenhouse gasses, some of the activities valued in the scheme were resource efficiency, CO2 savings, sustainable eco-system management and the protection of native wildlife and biodiversity.

§  Councillor Batrouni wanted to emphasise how the report related to the corporate plan wellbeing objectives and this was a demonstration of Cabinet’s strong commitment. The Cabinet Member for Organisational Transformation reminded colleagues of three of the objectives: economy and education skills, environment and infrastructure and an inclusive and fair sustainable council. Councillor Batrouni therefore supported the report.

Decision

Cabinet approved the developed NCC Core List of TOMs for measuring Social Value delivery through Commissioning, Procurement and Contract Management and associated reporting.