Council Community Wealth Building Workshop Overview

Explore opportunities for community wealth building through local procurement and economic development in Scotland. Understand the challenges, priorities, and initiatives aimed at increasing local spend and supporting the local economy. Delve into the procurement dilemma faced by [Council Name] and the importance of clarity, quality, and environmental considerations in decision-making.

• Community Wealth Building
• Local Procurement
• Economic Development
• Scotland
• Procurement Dilemma

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1. [Council Name] Council Community Wealth Building Workshop 1

2. Agenda [XX] Introductions Local procurement and the dilemma National performance [Council] spend Public Contracts Scotland Quick Quotes [XX] Comfort Break [XX] Scotland Excel Framework Suppliers Unintended consequences Economic Development The Journey ahead [XX] Close 2

3. The Disclaimer This workshop is designed to explore current and future community wealth building opportunities around procurement. It is a data-based analysis and therefore will not show the entire picture of the extensive work being undertaken within the council. There will be lots of statistics, but really this is about the bigger picture The data is from [time period] and available to all councils or via public searches. Slides can be misinterpreted and contain sensitive information, so care should be taken with distribution. When you see this symbol, I ll be looking for your views. When you see this symbol, we will suggest areas that can be explored further 3

4. Community Wealth Building 4

5. Local Procurement What is local ? What are you trying to achieve? 5

6. The Procurement Dilemma Historic Issue Legal Issues 7 BILLION TOTAL SPEND Pressure from many stakeholders to increase local spend Problem always here European Legislation Member groups Problem Clarity Politicians The problem Business Capability? What s Acceptable Local business Quality Councillors Value for Money Environmental The Wicked Problem Pressure for Local Government to spend more in their own regions Business Displacement 6

7. The Procurement dilemma What are the priorities for [Council Name] council? - vfm, - compliance - environmental - Quality - getting the job done - local economy Agree what is local Be clear on what you are trying to achieve. Clarity on council priorities. 7

8. How are we doing today nationally? Nearly two thirds of Scottish Public Sector spend is on Scottish companies resulting in 8bn per year going into our economy. 8

9. How are we doing today nationally within councils? 70% of Scottish Local Authority spend is on Scottish companies resulting in 5bn per year going into our economy. Both these statistics feel like something we should promote more to stakeholders. 9

10. [Council Name] Categorised Spend Business Sector Social Care & Services Construction Facilities Management Utilities & Energy ICT Waste & Environmental Services 2,255,860 Human Resources Travel & Accommodation Education Financial Services Food, Beverage & Catering Vehicles Security Equipment & Services Healthcare Professional Services Transport Arts, Sport & Leisure Business Support Services Other Goods & Services Charitable & Religious Activity Manufacturing & Machinery Marketing & Media Legal Animals & Farming Public Sector Bodies Stationery & Office Products Retail & Wholesale Clothing Total Spend 20,788,327 18,953,490 11,000,492 2,432,311 2,298,126 %age of Total 30.17% 27.51% 15.96% 3.53% 3.34% 3.27% 2.28% 2.09% 1.55% 1.53% 1.39% 1.27% 1.06% 0.94% 0.58% 0.52% 0.49% 0.47% 0.39% 0.39% 0.38% 0.29% 0.14% 0.13% 0.13% 0.12% 0.06% 0.03% 1,571,389 1,442,555 1,067,760 1,055,452 956,739 871,697 731,600 646,547 402,199 355,974 341,030 323,396 271,759 266,359 258,744 202,467 93,480 89,765 86,830 79,766 41,023 18,771 The top 10 categories represent [XX] of the council s total spend Data source Spikes Cavell 10

11. [Council Name] Spend in 2019/20 Supplier Name HUB EAST CENTRAL SCOTLAND LTD Clackmannanshire Educ Partnership Ltd Caring Homes Group Ltd Hillview Mears Care (Scotland) Ltd Sidey Solutions Ltd J H Civil Engineering Ltd EDF Energy 1 Ltd HC-One Limited Orchard NH AVONDALE ENVIRONMENTAL LIMITED Key Housing Association Ltd Aggregate Spend Local Authority 7,817,617 7,653,624 3,288,133 2,552,282 1,867,481 1,819,644 1,198,135 1,162,873 1,087,340 901,477 %age of total Stirling Windsor and Maidenhead Clackmannanshire Clackmannanshire Perth and Kinross North Lanarkshire Plymouth Darlington Falkirk Glasgow City 11% 11% 5% 4% 3% 3% 2% 2% 2% 1% The top 10 suppliers by spend represent [XX] of your total spend. There are [X] local suppliers representing [X] of your total spend. Data source Spikes Cavell 11

12. [Council Name] Spend Region Scotland East Midlands South East East of England Yorkshire and The Humber North East West Midlands North West South West London Northern Ireland Isle of Man Wales Total Spend 80,192,618 8,443,996 5,242,660 4,979,204 4,507,848 4,087,347 2,972,942 2,655,380 1,943,045 1,880,872 682,353 325,389 233,765 [Council Name] Council spent a total of 80m in Scotland representing 68% of its total spend. Data source Spikes Cavell 12

13. [Council Name] local spend Based on the basic local measurement, [Council Name] spent [XX] ( XXm) on local companies in 19/20. It spent a total of XXm in Scotland representing XX% of its total spend. Data Source Spikes Cavell 13

14. [Council Name] local spend If you consider [wider region] (XX postcode) to be local, then the spend would be XXm representing XX% of total [Council Name] spend. National figures do not reflect any sub-contract work undertaken by local companies or spend on national organisations with a significant local presence. The top 2 suppliers for [Council Name] represent XX% of total spend. Can any of this work be attributed to local companies? Is there significant spend on depots within the area which have a significant local impact? Are you promoting the good work you do? Data Source Spikes Cavell 14

15. Public Contracts Scotland There are currently 30,067 Scottish companies on PCS representing 8% of all Scottish companies. There are currently 49,871 companies on PCS of which 60% are Scottish. Data Sources PCS Report (all PCS Registrations) + Businesses in Scotland Report 15

16. Registered Businesses in [Council Name] There are xxx registered businesses in [Council Name] Data source Registered Businesses in Scotland report 16

17. Public Contracts Scotland There are XXX registered businesses in [Council Name] of which XX are subscribed to PCS. This represents XX of registered businesses and an estimated X% of all businesses (registered and unregistered) in [Council Name] Does this mean the other XX% are not interested in working with the public sector? How can you increase this number for local companies? Communicating with existing and new suppliers on PCS Better use of PCS by the council Business partner organisations and engagement Local Supplier Development Data source Registered Businesses in Scotland Report 17

18. Quick Quotes Quick Quote is an online request for quotation facility for Suppliers who are registered on the website. It is used to obtain competitive quotes for low value/low risk procurement exercises or for mini competitions within framework agreements. [Council Name] Standing Orders state Quick Quotes should be used for work between XX and XX Last year there was a total of XX QQ with a proportion of these used for mini competitions. There were XX local companies invited across XX Quick Quotes. To date this year there has been XX Quick Quotes with XX local supplier. Is there a desire/policy to use local companies via Quick Quotes? Can we do more to use Quick Quotes wider in the council and encourage more local companies to respond? Data source Council PCS Quick Quote Report 18

19. Quick Quotes Review existing use of Quick Quotes. Review Quick Quotes process (complicated?) and ownership Construction set at 50k Many orgs set this higher ( 110k) New legislation for QQ in construction now 2m Implement a proportion to be towards local companies Report adherence and performance to this policy Consider a phased approach to implementation and select areas to start with Be careful with disaggregation Balance resource requirements with benefits 19

20. Break 15 minute comfort break 20

21. Scotland Excel Over the last 4 quarters, [Council Name] spent just over XXm on Scotland Excel collaborative frameworks. Data Source - Council PowerBI Reports 21

22. Scotland Excel Framework Status [Council Name] based suppliers SXL Framework tender participation [period of time] Committee Framework Name Supplier Status Reason 13/10/2017 Vehicle and Plant Hire AHC Tools Awarded 24/08/2018 Road Maintenance Materials Beatson's Concrete Declined to Respond Could not provide specification 29/06/2018 Roadstone Beatson's Concrete Awarded 19/06/2018 Agency Workers Mears Care Withdrew Insufficient Staff 23/03/2018 Childrens Residential Scottish Autism Awarded 23/08/2019 Care Homes for Adults with LD Scottish Autism Awarded 21/06/2019 Asbestos A&C Asbestos Awarded Data Source - Council PowerBI Reports If Multiple Suppliers Consider the Timeframe to Use 22

23. Local Suppliers/Providers as at [Time Period] [Council Name] based suppliers currently awarded to SXL Frameworks to [Time Period] Data Source - Council PowerBI Reports 23

24. Potential [Council Name] Local Suppliers/Providers Supplier/Provider Name SME Status Town Postcode All Member Actual Spend Julia Stewart Ltd Small Johnstone PA5 8YP 792,450 GMC Corsehill Small Paisley PA2 6QL 255,915 Landcare Solutions (Scotland) Ltd Small Inchinnan PA4 9NG 245,891 Punch Consulting Engineers Ltd Medium Paisley PA1 1XA 117,646 Mgm Hoses Ltd T/a Pirtek Paisley Small Paisley PA3 1RQ 24,431 Data Source Council PowerBI Reports. 24

25. The Procurement dilemma There are regular opportunities for suppliers to tender for SXL frameworks. All opportunities are advertised on PCS. - Do you promote SXL opportunities to your local suppliers? - Does the opportunity to engage with more suppliers in our Councilarea exist and if so, how do we encourage participation? - Are local & national Meet the Buyer events increasing awareness? Investigate and resolve barriers to participation Educate suppliers in the requirements of doing business with Local Authorities 25

26. Living Wage Accreditation Status SME Status Supplier Town County Post Code Ref Contract Living Wage Supplier Not accredited but paying the living wage Not accredited or paying Living Wage but committed to doing so within 2 years Not accredited but paying the living wage Not accredited but paying the living wage Not accredited but paying the living wage Not accredited but paying the living wage Not accredited but paying the living wage Not accredited but paying the living wage Not accredited but paying the living wage A&C Asbestos Consultants Inc Ltd Tullibody Clackmannanshire FK10 2SU 2418 Asbestos Micro Alloa Hire Centre Ltd Trading As Ahc Tools Tullibody Clackmannanshire FK10 2TR 0217 Vehicle & Plant Hire Small Beatsons Building Supplies Ltd Alloa Clackmannanshire FK10 3TA 2817 Roadstone Medium Flourish Home Support Services Ltd Alloa Clackmannanshire FK10 3SA 1318 Care & Support Medium Ikl Care (a Partnership) Alloa Clackmannanshire FK10 1EH 1318 Care & Support Medium Mears Care (scotland) Limited Alloa Clackmannanshire FK10 1EX 1318 Care & Support Large Scottish Autism Alloa Clackmannanshire FK10 3SA 1318 Care & Support Care Homes For Adults LD Inc Autism Large Scottish Autism Alloa Clackmannanshire FK10 3SA 1918 Large Scottish Autism Alloa Clackmannanshire FK10 3SA 0517 Children's Residential Large Data Source SXL + Council Procurement Teams 26

27. Unintended consequences The council should focus spend its budget on local companies only. Why are we spending on companies out with our own area? 27

28. Scottish Council Spend on [Council Name] suppliers Approximately XXm by 32 Scottish Councils DATA Source Spikes cavell 28

29. Scottish Council Spend on [Council Name] suppliers Top 20 [Council Name] Suppliers by spend Supplier Name MEARS CARE (SCOTLAND) Scottish Autism CARING HOMES GROUP Marshall Construction Limited HUNTERS EXECUTIVE COACHES LIMITED IKL CARE Flourish Home Support Services Ltd Independent Living Services Parklands Care Home Crossroads Caring Scotland Lothian Resource Service Hillview Court Care Centre Nursing Home CAREVIEW HOMES LTD CHURCH OF SCOT BOARD OF SOC RESP FLYING START NURSERY Style Scotland Ltd JBP Transport Limited Wellbeing Scotland Kingdom Care (Beechwood) Ltd New Struan School Dollar Nursery School Aggregate Spend 18,423,934 9,081,392 4,918,467 3,608,825 1,026,044 879,908 852,575 831,999 740,004 663,640 530,634 360,053 312,560 244,563 227,074 211,000 209,595 199,428 198,292 194,681 176,199 Top 20 represent XXm but there are more than XXX other suppliers. Don t take the procurement tail approach. Data Source Spikes Cavell 29

30. Unintended consequences In summary: XXm spent by other councils on [Council Name] companies. XXm spent by other Scottish public sector organisations. Building walls (they don t work one way) means the council has to increase local spend by XXm to keep total local spend the same as it is just now! Another dilemma What is a good balance of local, regional, Scottish and beyond? The Supplier Development Programme (SDP) delivers training and events in your local area, region, and nationally. SDP assists businesses to become tender ready for public procurement, improving all-round efficiency, sustainability and market potential. Data Source Spikes Cavell 30

31. Economic Development and Procurement Procurement and Economic Development relationship. Making it tangible. Sharing Data. Economic Development data on local businesses PCS has 236 enrolled and wishing to do business with the public sector. Business Gateway Sharing Intelligence Local and National Opportunities Use the data we have already. Capabilities Data Source PCS Report 31

32. Economic Development and Procurement Data Exercise and promotion to PCS enrolment Local Meet the buyer event Promotion of Framework opportunities to local businesses and local business groups Prioritise public procurement as an economic lever Multiple effect from social value of public procurement Track and report tender interest, bids etc. from local companies Honest feedback and support gaps. Promote the benefits of co-operative initiatives. Cooperative Development Network Scotland Excel case study How can you make this a priority and resource it? 32

33. The Journey Focus small steps Small positive steps can be made by taking a focused approach and selecting business areas/services to consider. Select a business area that can be used to take small steps forward Are there suppliers in the local area who could fulfil the requirement? Do they have any interest in working with the council? Do they have the capabilities and meet required quality standards? Do services in the council know the companies? Roofing has been selected as a random indicative example and no work has been undertaken to verify the information derived from the data. Data source - Spikes Cavell From the spend data, select a couple of relevant areas to discuss 33

34. The Journey Focus Bigger steps [Council Name] may consider a large step being the growth of construction companies within its geography and also a more general move to local companies for existing works. Currently XX registered construction companies (XX%) in the area. Can you support their growth aspirations or encourage more? Council currently spends XXm (XX% of budget) on construction and facilities. Use the legislation to award more locally. Consider the supply chain. Investigate existing sub-contract work. Promote/award based on sub-contracting levels. Local events focused on local suppliers. Data Source Businesses in Scotland + Spikes Cavell 34

35. The Journey Community Steps [Council Name] could consider a more community driven procurement approach. How much are community benefit clauses utilised in the council? Can the third sector do more e.g. care services? Supported Business Legislation in place to support Clackmannanshire specific needs. Be creative. 35

36. [Council Name] Bang the drum We would encourage the council to engage their marketing resources to build a marketing plan on how it will support local business and promote its desire to engage with local suppliers more. This would include review of web site, supporting local events, case studies and marketing collateral etc. Don t be a secret success! 36

37. Thank You The information and points within this workshop were designed to make you stop and think about the many ways you can develop your community wealth aspirations further using the power of public procurement. Thank you for taking time out to listen to our ideas. Scotland Excel would be happy to discuss the services it can provide to further support your aspirations. 37