1.1 Background
Sustainable procurement is aimed at securing the maximum economic, social and environmental benefit for residents and businesses within Argyll and Bute from investment in the area. Argyll and Bute Council promotes sustainability within its contracts and seeks to introduce measures to secure opportunities for training and employment, work placements, school curriculum support, community enhancement and small and medium-sized enterprises (SMEs) supply chain development based on the evidence of need in the Argyll and Bute area.
Legislation already exists in terms of The Local Government in Scotland Act 2003, and the Procurement Reform (Scotland) Act 2014, which enable public bodies to include Community Benefits in the procurement process, and include a requirement to consider the inclusion of Community Benefits.
Community Benefits should improve the economic, social or environmental wellbeing of the area. The Council recognises the potential of Community Benefits Clauses (CBCs) within procurement processes and what they can achieve in terms of employment and training and business development throughout the full period of the proposed contract and beyond.
The Council is committed to maximise Community Benefits from its procurement activities and, as standard, includes CBCs within contracts with an estimated value of:
- Supplies and Services >£100,000
- Works >£2,000,000
The Council uses two different types of CBCs depending on the value and nature of the contract – either a Non-Evaluated CBC which mandates that the successful tenderer is required to select a benefit from the Council’s request-list, or an Evaluated CBC which is scored as part of the tender evaluation process, and requires the successful tenderer to deliver a range of benefits to achieve a set threshold of points.
The Council will take a proactive approach with suppliers to provide early, strong and clear guidelines of social, economic and environmental opportunity expectations. The Sustainability Lead Officer can advise on thresholds and processes undertaken to assess the inclusion of Community Benefits, and monitoring and verification of Key Performance Indicators.
Suppliers can receive a wide range of support to facilitate their Community Benefits obligations, including support from the Argyll and Bute Council Employability Team.
1.2 Expectations
Successful tenderers will be expected to embrace Argyll and Bute Council’s requirements for delivering a range of Community Benefits including:
- Support to local community groups
- Community enhancement
- Targeted recruitment and training
- Work placements
- Curriculum support
- Small and Medium Enterprises and Social Enterprise Organisations’ supplier development
Suppliers are encouraged to incorporate potential Community Benefits at all levels.
1.3 Evaluated Community Benefits Clause
Please refer to Sections 2, 3 and 4 to understand the process further. If an Evaluated CBC has been used, the Contract will have been allocated a minimum value of Mandatory Community Benefits Points from the Community Benefits Points Matrix (Section 3) based on the value and timescales within the matrix. It is up to the tenderer to decide what Community Benefits they wish to offer from the Community Benefits Points Menu (Section 4) which provides a selection of the types of Community Benefits that the Council would expect this Contract to deliver and allocates Community Benefits Points (CBPs) to each of these. As part of their tender return, tenderers will complete a Breakdown of the CBPs to be provided; a Community Benefits Method Statement; and a timetable for delivery of the Community Benefits. This will be an evaluated part of the tender submission. There is no limit on the Community Benefits that a tenderer may offer as Supplementary Benefits and the total CBPs offered may exceed the Council’s stated expectation. Tenderers should note that all Community Benefits offered must be delivered within the Argyll and Bute Council area, any proposals offered that are located outside the Council area will not be considered as part of the evaluation process.
1.4 Non-Evaluated Community Benefits Clause
For non-evaluated CBCs (for contracts of a value lower than £100,000) there is a scheme in place to supplement the points matrix system noted in sections 3 and 4 of this guidance. Community groups apply through a dedicated online application process on the Council’s website for requests of support from suppliers. Tenderers who are bidding for contracts of a value below £100,000 should visit the website:
Community Benefits | Argyll and Bute Council and select a benefit from the “request list” which should be treated and completed in the same way as Evaluated Contracts as detailed within this document.
It should be noted that the “request list” is also available within the Evaluated CBCs methodology to select an option as part of the “Community Enhancement” section of the Community Benefits Points Menu listed in Section 4.
1.5 Compliance and Sanctions for Non Compliance
For both evaluated and non-evaluated benefits – the offer and any relevant methodology for delivery will be included in the final contract between the Council and supplier. The Council will proactively contract manage Community Benefits as outlined at para 2.2 below to ensure compliance. In the event of the supplier being unable to deliver the Community Benefit offered, the parties will work together in the spirit of cooperation and partnership to identify alternative equivalent benefits. In the event of non-compliance, the Council may seek to recover the cost equivalent to the value of the Community Benefits that should have been delivered. This shall be invoiced to the supplier quarterly from the date of commencement and then every quarter until the end of the contract duration.
1.6 Remuneration
Trainees and recruits (aside from apprentices) must, as a minimum, be paid in accordance with the Real Living Wage rates and industry norms and must have terms and conditions of employment that are at least equivalent to those provided to workers that have equivalent skills and experience. Employers are encouraged to increase the remuneration of trainees in line with their experience and productivity.
1.7 Supplier and Sub-contractor Compliance
It is the supplier’s responsibility to develop a working method that will deliver the targeted recruitment and training requirements and related monitoring and verification data, and obtain the full co-operation of suppliers and sub-contractors in delivering these requirements for the full duration of the contract.
1.8 Equal Opportunities
The successful tenderer will be required to ensure that it complies with equal opportunities and non-discrimination legislation in relation both to the delivery of the service and to employment and demonstrate the policies and practices which it will put in place to achieve this.
1.9 Insurances
The successful tenderer must ensure that relevant indemnities are in place and insurance cover includes people aged 16 and over and staff from employment and training organisations when on site.
1.10 Frameworks with Evaluated Community Benefits Clause
Spend with framework supplier(s) will be established by the Procurement Officer on a quarterly basis.
Once trigger levels of spend are achieved as per the Community Benefits Points Matrix in Section 3, the supplier will be advised that a Community Benefits requirement has been activated. This will be done via quarterly contract management meetings or via email as appropriate.
The Community Benefits requirement is to be actioned during the following quarter, in line with the supplier’s Community Benefits response within their tender submission for the framework.
Please note that no timetable for delivery is to be submitted for frameworks, as delivery will be dependent on spend on the framework.
1.11 Definitions
A New Entrant is defined as a person who is employed to do a specific job and is leaving an educational establishment or a training provider, or a person that has been non-employed who has been unemployed and/or is registered with worker or job Centre Plus and is seeking employment.
An Apprentice is a person defined as a New Entrant to the industry who is undertaking a recognised skill qualification or an equivalent apprenticeship scheme for construction or non-construction apprenticeships.
Work Placement is defined as a person undertaking a short term overview of the industry and/or a related training programme with on-site instruction and supervision provided.
Direct indicates that the New Entrant will be employed or trained by the main contractor
Indirect indicates that the New Entrant will be employed or trained through a specialist contractor or subcontractor as a result of work procured through the main contractor
Priority Group is defined as unemployed people or young people not in employment, education or training; for the purposes of delivering Community Benefits within Argyll and Bute Council contracts
1.12 Disclaimer
The inclusion of targeted recruitment and training requirements does not comprise or imply any promise on the part of Argyll and Bute Council or their partners or agents to provide suitable trainees or labour. All recruitment, supervision and discipline responsibilities rest with the supplier and sub-contractors. Within this context the Council will work with local agencies to help facilitate the achievement of the recruitment and training requirements.
Any action taken by the Council to facilitate relationships between the supplier and individuals/ firms/ agencies does not imply and should not be deemed to imply that they or its agents consider the individual/ firm/ agency as suitable for engagement by the supplier. Within this context, the Council will work with local employability partners to help facilitate the achievement of the employment and training requirements.
1.13 Questions or Concerns
During the tender process if the tenderer has any concerns regarding the type of Community Benefit being requested and/ or the proportionality and fairness of the level of Community Benefit being requested they should contact the Sustainability Lead Officer.
