Social Value Statement

This statement covers activity for 2020/2021 and makes commitments for the year, 2021/2022. This is supported by an annual action plan.  Hammersmith and Fulham (H&F) is reviewing its Social Value Statement and Themes, Outcomes and Measures (TOMs) annually, through consultation with stakeholders, to ensure Social Value outcomes are staying relevant to the Council’s priorities.  

Name of Organisation: London Borough of Hammersmith and Fulham 
Publication Date: 28 January 2021
Review Date: December 2021
Signed off by: Kamal Motalib (Head of Economic Development) 

Introduction to H&F approach and intentions in relation to Social Value

Why Social Value is important to H&F

Local Authorities have faced unprecedented pressures on their finances over the last decade, which has impacted their ability to fully support some of their most vulnerable residents. Between 2010 and 2019 Hammersmith and Fulham’s (H&F) funding from Government reduced by £73m. To mitigate some of this impact, H&F pledged to become ‘Ruthlessly Financially Efficient’ (Appendix 1 - Ruthlessly Financially Efficient document (pdf)) whilst at the same time, safeguarding activity to support the most vulnerable. H&F’s wider objectives focus on six core values: building shared prosperity; creating a compassionate Council; doing things with residents, not to them; taking pride in H&F; being ruthlessly financially efficient; rising to the challenge of the climate and ecological emergency. 

H&F, like other public sector organisations has started a journey to effectively implement the Public Services (Social Value) Act  2012, recognising that the act provides a real opportunity to leverage our annual buying power to achieve meaningful outcomes for local people. H&F currently spend £270m a year.

In early 2020 officers from Procurement and Economic Development began work to explore different models to effectively deliver Social Value outcomes. After extensive research, benchmarking and market consultation, officers produced a Social Value Strategy. This was underpinned by resources available through the Social Value Portal (SVP). This Strategy was signed off by H&F’s full Cabinet in May 2020. SVP was adopted as it was clear to the Council that the approach would help H&F achieve its six core values, outlined in the H&F’s Business Plan 2018/2022 (LBHF Business Plan 2018/22: The change we'll bring together (pdf))

Our value of ‘building shared prosperity’, seeks to drive economic growth in the borough, underpinned by a robust Industrial Strategy. The Industrial Strategy, Economic Growth for Everyone (2017), reflects the Council’s ambition to make our borough the best place to do business in Europe and to create an inclusive economy where everyone can benefit. Through the successful adoption of SVP, H&F will be able to support local businesses, enhance skills in the borough and increase the number of good quality employment and apprenticeship opportunities available to local people.   

H&F, like the rest of the UK, continues to suffer negative economic consequences as a result of the ongoing COVID-19 pandemic. At the beginning of 2020, the number of work-related benefit claimants (aged 16-64) was 4,525.  As of November 2020, this figure had jumped to 10,865.  At the height of the pandemic in 2020 over 12,000 residents were furloughed and with the continuation of lockdown measures, many of these residents could lose their jobs in the coming months. Working more collaboratively with its suppliers, H&F can reverse some of the negative economic impacts COVID has created and better support our communities. Social Value can be achieved through collaboration and adoption of innovative approaches to service delivery.

Our value to ‘doing things with residents, not to them’ encourages officers to involve residents at the decision-making process, as well as at policy evaluation and service delivery. H&F will seek to ask residents where additional value is needed, depending on the project. Commissioners will be able to use the Social Value mechanisms to maximise benefits of public spend. If additional value can be identified at the commissioning stage, more targeted outcomes can be achieved through the procurement process and through contract monitoring. 

H&F has a bold target to achieve carbon net zero by 2030 (Climate and ecological emergency). This can only be achieved through enhanced collaboration and a shared commitment from stakeholders across the borough, including our supply chain. Through Social Value we have provided a mechanism for suppliers to engage with the Council on this crucial target and to use mechanisms to effectively track outcomes related to carbon reduction.

Social Value represents an opportunity for the Council to further enhance our value of ‘taking pride in H&F’ by supporting outcomes. This will help make the borough a better place to live, work and do business. H&F will also use Social Value to support our commitment to ‘create a compassionate Council’ recognising that larger suppliers will have existing corporate social responsibility, which can be aligned to support local needs.  

H&F ambitions for Social Value

1. Embedding Social Value 

The current H&F Social Value Strategy introduces a mandatory requirement for all contracts above £100,000 to achieve a minimum of 10% in Social Value. Over the next 12 months, the Council target is to fully embed the approach to all procured contracts over £100,000, direct awards and contract variations. The Council’s ambition is to increase the Social Value weighting to 20% by 2023.  
In the coming year, the Council will also explore Social Value in planning and grants allocation activities.  The post of a Social Value Officer has been created to ensure Social Value is maximised throughout all Council’s activities.

2. Stakeholder Engagement 

More engagement with residents and businesses will be a key driver to achieve the council’s ambitions set out in the Industrial Strategy, LBHF Business Plan 2018/22: The change we'll bring together (pdf) and in the Decision - Delivering Social Value in Hammersmith and Fulham and, our emerging Climate and Ecology Strategy. 

The council’s ambition is to involve local businesses, voluntary sector representatives and residents in the annual review of Social Value Themes, Outcomes and Measures (TOMs). This is planned to take place at the end of Quarter 2 of the 2021/22 financial year. Members and officers will continue to be involved in the annual review of our TOMs framework to ensure Social Value aligns to our key priorities and service outcomes. 

3. Leading Best Practice

H&F has strong links with other public sector organisations in the borough. This year we will focus on supporting wider adoption of Social Value, seek greater alignment of activity and share best practice with other Local Authorities and, with our partners with a focus on larger organisations such as the NHS. 

H&F recognises that successful adoption of Social Value can only happen if current and future suppliers understand our challenges and the important role they can play to address these. We will showcase best practices from suppliers as well as encourage collaboration between suppliers. 

Council activities Social Value will be applied to 

Our current Social Value Strategy  goes beyond the compliance requirements of the Public Services (Social Value) Act.  H&F applies Social Value requirements to works, goods and services contracts over £100,000.  Social Value is embedded in all Council owned framework agreements and dynamic purchasing systems and it is a requirement at the call-off stage from any framework, regardless of the call-off procedure (direct award or mini competition).  

Social Value assessment is also required from suppliers who are directly awarded a contract under the use of a negotiated procedure without prior publication and from suppliers whose contract is varied, if the variation brings the contract over £100,000. Social Value will also be applied to concession contracts and partnership agreements. 

Key areas that the organisation will be focusing on

Social Value priorities

H&F’s Social Value priorities are reflected in the tailored TOMs framework and, they are aligned with the Council’s six priorities, as listed below:

H&F Priorities and summaries of how Social Value outcomes are aligned to the H&F Priorities  

Priority: Building shared prosperity  

  • Supporting all residents into good quality employment with a specific focus on those with most barriers
  • Improving skills for local people
  • Increasing supply chain and spend opportunities for local small and medium enterprises (SMEs) and voluntary community & social enterprises (VCSEs)
  • Supporting wider adoption of the Living Wage
  • Increased contract opportunities for local SMEs through breaking large contracts into smaller lots where possible 
  • Increased training opportunities for local micro and small businesses to develop the local market and build the capacity of potential suppliers.
  • Increased opportunity for market stimulation through increased market engagement events, forward planning and local SMEs engagement events.

Priority: Creating a compassionate Council  

  • Creating a healthier community
  • Vulnerable people are helped to live independently
  • Initiatives aimed at crime reduction
  • Large contractors proposing and delivering clear community benefits

Priority: Doing things with residents, not to them

  • Developing mechanisms to co-produce the implementation of the Social Value Strategy with residents

Priority: Being ruthlessly financially efficient    

  • Social Value embedded in Commissioning and procurement and supply chain
  • Increased competition in the market
  • Greater value for money from contracts
  • Reduced pressure on other service areas 

Priority: Taking pride in H&F    

  • Better places to live, work and do business
  • Ethical procurement is promoted

Priority: Rising to the challenge of the climate and ecological emergency    

  • Climate impacts are reduced
  • Improved air quality 
  • Increased recycling rates 
  • Tackling energy poverty and inequality 
  • Safeguarding the natural environment
  • Supporting green growth 

Social Value themes & outcomes 

The H&F Social Value TOMs have been developed by working closely with commissioners, contract managers, councillors and the Social Value Portal team.  The list of the TOMs will be reviewed annually to ensure alignment with the needs of the borough. H&F will work with local businesses, residents and representatives of the voluntary sector, satisfying our commitment to coproduction (Co-production – Doing things with residents not to residents). 

A list of the full H&F 2020/2021 TOMs (xls)

How Social Value is communicated, co-ordinated and managed internally within H&F

People accountable for Social Value: 

  • Lead Member: Cabinet Member for Finance and Commercial Services
  • Principal Officers: Head of Procurement, Head of Economic Development and Social Value Officer

Principal officers are required to provide regular Social Value updates to the Cabinet Member for Finance and Commercial Services as well as other relevant Cabinet members such as, the Cabinet Member for the Economy. Additional scrutiny will be provided through presentation at full Cabinet on an annual basis. The report will contain quantitative figures under the TOMs framework, both committed to and delivered by suppliers. It will also cover a summary of Social Value achievements to date and will highlight successes, challenges and issues. The first report will be produced on Quarter 2, of the 2021/2022 financial year.

Social Value is communicated through official documents published on the H&F Internet and Intranet. Residents and local businesses can access the Social Value Strategy along with the Council’s Contract Standing Orders (CSOs) and H&F’s TOMs and, the Dos and Don’ts Guidance to suppliers on the internet page: Trading with the Council.

Social Value activities are coordinated between Procurement and Economic Development teams, who ensure all officers have the tools and templates required to successfully implement Social Value. Economic Development has also recruited a dedicated Social Value Officer to support the Council’s commitment to embedding and further developing the approach. 

People responsible for delivery

Social Value is a Council wide commitment impacting all departments. Contract managers and commissioners are responsible for embedding the approach with oversight provided by senior officers. To support delivery, the Social Value Officer will monitor activity and assist officers to embed the approach.  H&F’s Contracts Assurance Board (CAB) is a gateway for reviews of all procurement strategies and contract awards and will ensure Social Value is considered and assessed in line with the strategy. 

Approach, updates and actions discussed at team meetings, department meetings, corporate management meetings and cabinet meetings

A Social Value Delivery Group (SVDG) was established in June 2020. The SVDG is working in collaboration with colleagues across all directorates to ensure Social Value activity aligns with H&F’s Industrial Strategy, H&F’s Vision, pledges related to the Climate Emergency and the COVID-19 Recovery Response. The SVDG advises and supports officers within their directorates to embed Social Value in future tendering activities.
Internal procurement strategy and award reports templates were amended to include implications for Social Value and local economy. The cabinet member briefing templates will also be amended to include a section about Social Value delivered within each of the portfolio area.

Roles / responsibilities of different functions 

Social Value roles and responsibilities are distributed as follows:

Commissioners 

  • responsible for considering Social Value at strategy and award stages
  • lead market and service-users engagement activities
  • evaluate tender submissions (including Social Value)

Head of Procurement 

  • ensures all procurement strategies include a Social Value assessment 
  • ensures all procurement templates and documentation (Instruction to Tenderers - ITTs, Contracts, Supplier Guidance, Contract Standing Orders) are updated
  • reports on the Social Value Strategy implementation and delivery

Social Value Officer

  • oversees the Social Value delivery across the Council
  • supports officers in considering and assessing Social Value delivery
  • reports on the Social Value Strategy implementation and delivery
  • responsible for widening the H&F Social Value agenda

Contracts Managers

  • monitor Social Value delivery through their contracts
  • apply remedies in case of non-delivery
  • report any issues with the delivery of Social Value to the Head of Procurement and the Social Value Officer

The implementation process for social value

Social Value is discussed at all stages of procurement activities 

When a local need is identified, commissioners are required to develop a procurement strategy, in which the award criteria must include the Social Value considerations, and Key Performance Indicators (KPIs). 

The Social Value aspect is included in the Instructions to Tenderers (ITTs), contract draft and specifications.

At the award stage, officers must demonstrate the Social Value outcomes the winning bidder committed to.  Once the contract is awarded, KPIs are set on the Social Value Portal’s online platform and suppliers are required to report on the delivery of their commitments providing evidence that these benefits are being delivered to local communities. The data is quality assured by the Social Value Portal (SVP) in line with the evidence requirements outlined at the tender stage. Quarterly reports are provided to assist contract managers to monitor suppliers’ progress and identify any shortfalls. In case of non-delivery, remedies (details in the section below) are applied in line with the contract.

Social Value considerations in planning permissions 

To date, the focus has been on implementing Social Value in all the procurement activities. H&F is part of the National Social Value in Planning Taskforce, organised by SVP. The first meeting took place on 12 January 2021.

One of the objectives of the Social Value Strategy Action Plan 21/22, is to explore Social Value in planning. An internal working group will be established to involve relevant stakeholders. 

Social Value considerations in wider commercial activities

Since Cabinet approved the Social Value Strategy (May 2020), there have been no procurements for joint ventures (JV) opportunities, nor any wholly owned companies created. When an opportunity arises, the JV partners will be required to commit to deliver Social Value in line with the Council’s Strategy. Similarly, any newly created wholly owned companies will be required to follow the Council’s Social Value Strategy.

Social Value in approval processes (i.e. business cases, gateways, sourcing plans, funding requests) for all contracts awarded (tenders, frameworks, waivers, extensions) over £100,000

For contracts over the statutory services (£189,330) thresholds, the Council’s contract standing orders (CSOs) require all officers who undertake a procurement of such value to submit a procurement strategy, which includes Social Value considerations and assessment to the Contracts Assurance Board (CAB). 

For contracts above £100,000 but below the statutory services thresholds (£189,330), the project lead must submit an award report to CAB illustrating the Social Value committed by the winning supplier and related delivery plan. The Economic Development Team will scrutinise Social Value commitments and their delivery.  
For directly awarded contract, officers must ask the supplier to fill in the H&F TOMs on the SVP online platform, the list of outcomes is open and not prescribed. Each commitment will be then part of the contract KPIs. The standard terms and conditions will still apply.

Reasons for not including Social Value as a consideration is clearly documented and scrutinised by management 

The Council is seeking contractors to proactively deliver additional Social Value to the borough.  There is no option where Social Value cannot be considered in a procurement process. 

Social Value is included as a weighted criterion in decision making - min 10% of the overall weighting

Social Value must be no less than 10% of the overall weighting.  The Social Value weighting in the Technical Envelope is based on the quality/price ratio and it is as follows:

Quality:Price split | Minimum Social Value weighting as part of Quality 

60:40  |  16.7%
50:50  |  20%
70:30  |  14.3%
40:60  |  25%

Suppliers are required to make contractual commitments and are assessed on both the quantity and quality of responses 

During the tender process, bidders are required to submit two answers related to Social Value. The first question is the quantitative submission - the Social Value Questionnaire (TOMs) submitted via SVP online platform. The second part is the method statement (part of the quality of responses), in which suppliers will illustrate their plan to achieve their commitments.

Social Value Questionnaire (TOMs Calculator) represents 50% of the Social Value score. Each measure has a proxy value attributed to it to determine an overall value for each commitment.   

Social Value Method Statement sets out evidence and proposed methodology around how the Social Value proposals are to be delivered against each of the commitments offered.  

Social Value is part of the contract management process

The Social Value delivery is monitored via the Social Value Portal and will be part of the quarterly performance assessments. The standard contracts include the Social Value provisions and remedies for non-delivery. In case of non-delivery, the remedies will apply. Full T&Cs are attached in the following section.

Feedback is collated at the end of projects at department and organisational levels and is reviewed annually to continuously improve internal processes

Feedback on the Social Value Strategy is collated in the Issues Log by the Social Value Officer on a project by-project basis. Where feedback affects more than one project, changes will be made to relevant documents. 

H&F staff are supported to contribute and suceed in delivering the organisations social value ambitions

H&F staff are provided with access to training on Social Value and technology is in place to provide easy access to data and help staff manage and report on the delivery of Social Value

H&F staff have access to trainings provided by the Social Value Officer. The SVDG will be assisting in reaching out to teams within their service areas. Each department has access to the SVP information and real-time data available so they can monitor the Social Value delivery within their area. 

The National TOMs as developed by H&F are used to provide a standardised approach for staff to implement Social Value across the organisation

H&F worked closely with the SVP to tailor the national TOMs to the local needs of the borough. The list of TOMs is used as a standard list for all service areas. However, commissioners may choose to use multipliers, which can prioritise specific outcomes. 

Detailed guidance documents are available to staff i.e. Social Value toolkit, process maps, ITT templates, contract clauses etc.

All documents are available on the Procurement intranet page, accessible to all H&F staff.

Instructions to Tenderer (ITT) Templates for all procurements over £100,000 are attached below. 

Guidance for commissioners was developed to ensure Social Value is considered through the whole commissioning cycle.

Contract T&Cs with remedies contain Social Value remedies and were implemented in July 2020

Lessons Learnt The Social Value Officer is overseeing the corporate issues log based on a project-by- project basis. 

Suppliers and partners are supported to contribute to delivering social value approach

Policies and guidance are published on the website to help suppliers understand the organisations expectations for Social Value 

The Social Value Strategy, the Suppliers Guidance and the H&F list of TOMs is available for the public on the H&F Internet page, available at: Trading with the council

Regular market engagement events are held to raise awareness

H&F is planning a series of webinars supported by SVP. The first event for the local supply chain was held on 19 January 2021. H&F presented to the attendees the 'Economic and Social Value' Strategy and its commitment to create more opportunities for local firms. 

Internal and external resources are signposted to support suppliers with delivery

Amongst speakers was one of the Council’s biggest contractors (United Living) who presented its Social Value commitments through the contracts they hold with H&F and, the opportunities available for the local supply chain.  All parties are working with the H&F Local Supply Chain Project to ensure contractors can deliver their Social Value targets locally, through appropriate channels.

Suppliers and partners are consulted and contribute to the implementation and performance management approach

Feedback collected will be used to plan the topics for future engagements, which will be looking at engaging more suppliers. The aim is to create a series of webinars to present the future contracts opportunities in H&F. In the future, the events will also be used to consult local businesses on the annual review of the H&F TOMs. These activities will run in parallel with the internal Social Value trainings for H&F staff as set out in the Action Plan (details provided in the last section of this document).

H&F approach to social value performance management

Social Value is measured in both financial and non-financial terms using the National TOMs 

Since the 1 August 2020, H&F is fully supported by SVP and it is using the full functionality of SVP online platform. The delivery of the Social Value commitments will be managed via the SVP online platform from both a financial and non-financial point of view. This will be done in line with method statements submitted during the tender stage. Evidence of quarterly reviews are held on both the SVP and the Council’s contract management platform. 

Commitments made by suppliers are reported on and monitored during the delivery of contracts

The commitments made by suppliers will be monitored on the SVP by contract managers. Progress will be reported regularly through the department Cabinet members briefings. The template to report on Social Value will be amended by the first quarter of 2021/22 financial year.

Social Value delivery is tracked at contract, department and organisational level

The use of the SVP online platform is enabling H&F to have immediate visibility of the Social Value commitments and their delivery by using the SVP dashboard. Data can also be filtered by department and local areas, which enables us to understand where additional value is being created in the borough. The automated process of tracking Social Value provides internal reporting capabilities at departmental and organisational levels. At contract level, Social Value delivery is managed and tracked by the contract managers, who work collaboratively with the Social Value Portal team and supported by the Social Value Officer in H&F. 

Evidence of Social Value delivery is provided by suppliers and reviewed to ensure benefits are realised

Once the procurement process is complete, SVP will liaise with the winning contractor to transfer the commitments made by suppliers during the tender stage to the contract management platform. SVP provides trainings to suppliers on how to submit evidence for each outcome committed. Through quarterly meetings, SVP will provide quality assurance on the evidence provided by the supplier in line with the national standard. SVP will flag up to the Council any shortfall, so the project lead can liaise with the contractor and assess options to ensure outcomes are delivered. 

Annual Social Value audits are conducted to ensure commitments are delivered

The Social Value audit is covered by the annual procurement audit. The audit test selects a sample of tenders and checks if Social Value has been considered in the procurement strategy and has been applied compliantly. Audit will also select a sample of contracts awarded after 1st August 2020 (since the implementation of SVP) and check the contract management aspect of Social Value. Any actions resulting from the audit will be implemented across the Council. 

Social Value delivery is reported on quarterly and annually to Corporate Management Teams and Members

Regular updates will be provided to the Cabinet Member for Finance and Governance. Engagement will also take place with Divisional Management Teams quarterly. An annual report will be presented to the Senior Leadership Team before presentation to full Cabinet. 

Social Value targets are set annually by: Cabinet, Management and Departments 

Social Value targets are determined by the Social Value Strategy, which is 10% in all contracts above £100,000. The strategy requires H&F to increase this target to 20% by 2023. All service areas are accountable to achieve this target.

Social Value is a key performance indicator at cabinet scrutiny meetings, corporate management meetings and individual contracts

The Social Value delivery commitment is scrutinised at the contract award stage, by the Contracts Assurance Board and the decision makers (Director or Cabinet Member). The action plan (presented in the last section, below) highlights areas of work to ensure success of the Social Value Strategy implementation and delivery and, to expand the Social Value agenda across the Council.

Social Value acheivements to date

To date, there have been around 40 tenders undertaken since May 2020 but only 8 with a value over £100,000.

The Social Value committed and delivered since then is presented in the image below. The information is also displayed in the table below this image.

Social Value acheivements to dates

Outcomes

Target

Social & Economic Value

Apprenticeships

26 weeks

£5,392.40

Carbon Reduction

 

£3,350.50

Carer Support Sessions

778 hours

£97,732.36

Charity Support

£5,000

£5,000

Community Support

£2,633.2

£2,633.2

Educational Sessions

190 Hours

£3,053.30

Expert Hours

1286 Hours

£123,597.46

Local Employment

6

£232,169

Local Spend

£180,000

£339,191.56

Long Term Unemployed

1

£15,085.95

Staff Support

16 hours

£1,563.95

Training Opportunities

10 weeks

£2,463.91

Volunteer Hours

345

£5,436.37

Work Experience

38 weeks

£6,012.74

Total

 

£842,682.70

Social Value strategy objectives and delivery plan for 2021/22

An action plan for the financial year 21/22 was drafted by the Social Value Officer to outline the actions, deliverables, and timescales to achieve the ambitions outlined in this statement. The action plan has been signed off by the Head of Economic Development.

A drafted Action Plan 2021/22 is attached below:

H&F Social Values Drafted Action Plan 2021 / 22 (xls 25KB)

If you need any of the documents linked from this web page in a different format please contact andra.ulianov@lbhf.gov.uk 

H&F social value statement press release on LGA website

The Local Government Association press release about how we became the first council to publish a Social Value Statement.

H&F - Social Value Statement | Local Government Association