Added Value from the VCS

How can we ensure the tendering process recognises the added value that local voluntary sector organisations bring to the community?

In the voluntary and community sector we know that our work brings added value to the community over and above the core services we deliver. The VCS enjoys a closeness and trust amongst Hackney’s diverse communities that has been built up over many years. This added value cannot be ‘scaled up’ and will not be easily replaced if it is lost.

Also it is important to note that the VCS  brings additional income to the borough through fundraising activities, for example in  2009 eleven local Hackney based groups who were  funded to provide advocacy or carers services bought in an additional £700,000.00 of grants and investment income between them.   

But how can we ensure that this added value is recognised in the procurement process?

Tendering is acknowledged to favour large organisations and it is recognised across the EU that small and medium enterprises generally are not faring well under the procurement rules.*

The British Government has issued clear guidance to redress this.
The Best Value Statutory Guidance (September 2011) states:

‘We want to encourage public agencies and civil society to collaborate more, including greater involvement for voluntary and community organisation as well as small businesses in the running of public services.’

 Also, the Guidance gives a clear duty to Local Authorities to:

‘consider overall value, including economic, environmental and social value, when reviewing service provision. As a concept, social value is about seeking to maximise the additional benefit that can be created by procuring or commissioning goods and services, above and beyond the benefit of merely the goods and services themselves.’

Added social value has to be integral to a contract to be counted. Jenni Inglis, an independent consultant specialising in Social Return on Investment comments:

‘Once any supplier has to bid on a scope and specification that has already been set, the opportunity to have their bid favoured on "added value" (is) limited.’

HSCF and Hackney CVS have highlighted the need to address social value in commissioning and procurement to the London Borough of Hackney who are currently considering their approach. At the moment there is nothing on the Council website which indicates it favours this approach.

If London Borough of Hackney is going to continue to tender out its services then we need to ensure that it builds in a really good system for measuring community benefits.  We have shared with LBH the Social Value in Commissioning Toolkit http://www.hscf.org.uk/?q=node/313 developed by the NHS and we are aware of the Social Return on Investment toolkit. 

If you have any information of what other councils are doing to work with and protect the diversity of their local voluntary sector please let me know. hscf@hcvs.org.uk

Best wishes,

Jackie Brett