Innovative Procurement – How to

Support Social Enterprises

Rachael James – Senior Procurement Manager,

Midland Heart Ltd

(rachael.james@midlandheart.org.uk)

iCon Environmental Innovation Centre

4th September 2012

Agenda

Midland Heart – Background

Midland Heart – Approach to Social Enterprise

Case Study: Environmental Services Procurement

Questions

Background

• Total properties ca. 32,000

• Ca. 27 local authorities

• The stock is unevenly distributed

• Around 50% in Birmingham

Distribution of Stock across Local Authorities

“Community Benefit”

What is a Social Enterprise

“...businesses with primarily social or

environmental objectives whose surpluses are

principally reinvested for that purpose in the

business or community”

What does that mean?

Trade for social and/or environmental purposes

Reinvest profit back into the business or

community of benefit

Ownership and governance structures based on

participation and not for personal gain

Compete in the market like any other business

“Housing, Care and More…

“And More” Procurement

The Options! •Don’t Procure – In House “Social Enterprise”

•Work Existing Social Enterprise Partners

•Find new Social Enterprises to work with

In House – e.g. Frost and Snow Volunteers who are

homeless or have

experienced homelessness

All proceeds to supporting

people out of

homelessness

Working with SE Partners

“Riots Response”

Working with Social

Enterprise Partners

Back On Track Programme

Targeting 20 young people

vulnerable to ASB, offending,

gang-related activity

Addressing: Lack of training and opportunities

Poor educational outcomes

Lack of family support

Alienation leading to harmful

behaviours and affiliations

Partners include ENTA CIC (www.entapeople.com)

MAC-UK (www.mac-uk.org)

Case Study - Environmental Services

Grounds Maintenance/ Cleaning & Window Cleaning

Approx £2.5m per annum

Contract end 30th November 12

1 Current Contractor

1 Contract

What Customers wanted….

Quality

Price

Contractors based locally

Employ local people

Contractors take on local apprentices

Good staff training levels i.e. communication

“Environmentally Friendly”

Social Enterprise West Midlands

(SEWM)

Consultancy Role

Understanding the barriers

Reaching the market place

Opening up the Market Place

turnover required

trading history

Insurance Liability

Insurance Liability - Start Date not now

“Meet the Buyer Day”

Meet the Buyer Day

Approx 60 Contractors

Presentation

Networking

Questions and Answers

TUPE

PQQ

Submissions

50% “Big” Contractors

50%

Smaller Local Business’s

Pure Social Enterprise

Submission Quality

Outstanding Very Very Poor

ITT

Invited 11 to tender

10 tender submissions

Mix of

Large enterprises

Small Family Firm

Pure Social Enterprise

Joint Bid Large Contractor Partner with SE

selected area’s

Contract Award

1 contract awarded to a family run large

business and a social enterprise.

2nd contract is currently in the Alcatel standstill

process

3rd & 4th contract in final stages of selection

Feedback

Debriefing

Next time? Yes – we would do again and are!

Focus – How do we improve the quality of tender

submissions of SE’s

Understanding; why some SE’s at Meet the Buyer didn’t

apply

Ensure Independent Procurement Support accessible

Improve Communication Post SE Questions

Questions From You???