In many countries, public sector buyers are now looking to achieve more than just a “good product at a fair price”. Driven by central government as well as local politicians, the aim is to use public procurement to drive wider “social value”. That definition can cover issues from global concerns such as emissions or modern slavery, to much more local challenges - supporting employment in a town or city, or encouraging minority-owned businesses to bid for work in their locality.
The UK has of course left the EU now, and has its own plans as to how the nation might drive social value through procurement. However, we would hope that policy makers and public procurement professionals in any country will take a look at a new EU guidance document, because it is well worth a read.
This is the second edition of ‘Buying social: A guide to taking account of social considerations in public procurement’ and is clearly written, extensive and very useful for anyone involved in these activities. In fact, there is much of value here for those involved in sustainable procurement and procurement with purpose issues in private sector firms too. That is because many of the challenges in terms of achieving wider benefits and outcomes from the procurement process are common to all and any sectors.
According to the Commission, the guide “provides practical indications for public buyers to consider the social impact of the goods, services, and works they purchase. The guide is updated to reflect the changes brought about by the 2014 EU directives on public procurement and includes suggestions on how to use public procurement to achieve social goals. It covers the entire procurement process step-by-step, including information on how to set up an organisational strategy for socially responsible public procurement (SRPP), how to plan the tender procedure, as well as elements of contract management. To inspire public buyers, as well as other government and non-governmental stakeholders, each section also includes best practice examples and practical takeaways.”
Following a LinkedIn discussion thread, we know that the authors are ICLEI, Anna Lupi from the Commission, and Abby Semple, independent consultant and lawyer in the field of public procurement and author of the excellent (if pricy) book, “A Practical Guide to Public Procurement”. ICLIE is Local Governments for Sustainability – “a global network working with 2500 local and regional governments committed to sustainable urban development”.
I like the emphasis on developing an appropriate strategy, and the importance of thinking carefully about which contracts have the highest potential impact. There are cautionary notes around the risks of creating new barriers to entry through including onerous social requirements – I have written previously about the additional risks of fraud and corruption that will arise if “social value” in procurement is not handled carefully.
The sections around contract management and performance are also strong. Suppliers are now promising all sorts of actions and results when they bid for contracts. But how do we incorporate those commitments into contracts and then manage the contract and supplier to ensure promises are kept? That is a big question for every organisation – public and private sector, actually – as we get deeper into “procurement with purpose”.
As the guide says, “The use of standard terms and conditions, without the addition of specific social clauses, is seldom appropriate for SRPP (socially responsible public procurement). Treating contract terms as an afterthought can undermine the delivery of SRPP, which requires considering contract conditions from the very outset of a planned procedure”.
Case studies are also useful, covering all stages of the procurement process and looking at different types of organisation in various countries. All in all, a very good piece of work and a valuable resource for public and private sector professionals with an interesting in social value, sustainable or purposeful procurement.