The Group Finance Director has submitted a report on Social Value in Procurement including updates on the implementation of the new Procurement Act 2023.

Cllr Ed Turner, Cabinet Member for Finance and Asset Manager, Nigel Kennedy, Group Finance Director, and Annette Osborne, Procurement Manager have been invited to attend the meeting.

The Panel is asked to note the report and agree any recommendations.

Councillor Ed Turner, Deputy Leader (Statutory) and Cabinet Member for Finance and Asset Management firstly thanked the Panel for its work this year, particularly their input in the setting of the budget for the next financial year.

He introduced the report, reflecting on three headline points, including the challenges of implementing social value provisions, particularly in the context of decentralised procurement; what has been achieved thus far despite these challenges; and the recent motion passed by Council to strengthen ethical procurement and investment policies. He reassured the Panel that options for members to consider would be brought forward in a timely manner and which would align with appropriate due processes.

In response to the Cabinet Member’s comments regarding the Council motion, Councillor Jarvis asked whether there were financial implications within legal framework, noting that the wording of the motion appeared to be restrictive in terms of procurement. He requested clarity from the Cabinet Member on what is and is not possible to deliver within that context. Councillor Turner replied that it is the Council’s role to set out its priorities while recognising the constraints of the legal framework. Determining what is legally permissible and practically achievable is the responsibility of officers, though this work must take into account the financial considerations and potential legal risks. He added that officers are guided to provide granular advice through the procurement process.

The Panel thanked Councillor Turner for attending the meeting in the midst of other commitments.

Cllr Turner left the meeting.

The Chair welcomed and invited Annette Osborne, Procurement Manager to provide a progress update on the implementation of social value provisions, explaining that she had been working collaboratively with Oxford Social Enterprise Partnership (OSEP) and Oxfordshire Local Enterprise Partnership (OxLEP), to develop the Themes Outcomes and Measures for Social Value in tender documents for Oxfordshire and that OxLEP is now taking the lead on delivering Match My Project across other districts in Oxfordshire. Though progress had been slow, largely due to the need to prioritise pressing matters related to the new Procurement Act, she expressed hope that momentum could now be built around the implementation of social value.

Councillor Smowton wondered what the reception from suppliers had been and whether their contributions tended to be financial or offered in kind. The Procurement Manager explained that recent contributions had mostly taken the form of volunteer hours delivered rather than financial donations, but that suppliers are provided the flexibility to decide how best to deliver their contribution. Examples of these include gardening work and ongoing ground maintenance, both of which have had strong social impact. While evaluating the exact value of these contributions can be challenging, she noted that seeing tangible results is always encouraging. In response to a follow up question, the Procurement Manager added that this approach has genuinely added social value to contracts, rather than simply serving as a tick-box exercise during the tender process.

Councillor Yeatman queried the impact on headcount, asking whether the costs associated with these initiatives offset the need for additional staff, noting that the secondment in place did not seem to change the headcount necessarily. The Procurement Manager explained that headcount changes were more closely tied to the Procurement Act than to social value. She clarified that while procurement for the Electric Vehicle Dynamic Purchasing System (EVDPS) is managed on behalf of some local authorities for which the Council charges. The secondment was to cover that role, and was to be financed from income generation. Whilst the new structure does not result in an increase in headcount, it does represent an increase in budget with the permanent position being re-assigned from the EV DPS fully to procurement based on the administrative requirements of the new Procurement Act.

In terms of leisure contracts, Councillor Fry inquired how many appeals had been made against procurement decisions in the last year. The Procurement Manager stated that there had been three appeals, all around the same time, but that there had been none so far this year. When asked how the council fared in these appeals, she explained that the council had won each case as they were able to justify their position before closing the standstill in each instance. Councillor Fry then questioned whether the council was waiting until the team was fully staffed in June to implement the new Procurement Act given that it had been in place since February. The Procurement Manager gave the Panel reassurance that implementation was underway, explaining that one-month moratorium had been in place as a risk-based decision to ensure all suppliers registered.  This was necessary to avoid the risk of suppliers being unable to bid. The moratorium had since ended on 23 March, and is now fully operational under the new act.

The Panel thanked the Procurement Manager for her time and contributions.

The Panel noted the report. There were no recommendations.

The Procurement Manager left the meeting.