`It`s all about Gina ……` - Local Government Procurement

‘It’s all about Gina ……’
Achieving Social and Economic Development through Strategic Approaches to Major Project Procurement
Claire Parry
Agenda
Background and Context
• Social Procurement or Social Commissioning ‐ Outputs versus Outcomes
• Social and Economic benefits
• The Evolution – UK • The Commissioners Case Studies
• The London Story – Major Projects • Greater London Authority
• Olympics 2012
• Crossrail • Lessons Learnt • Legislation and Local Government
• North West Rail Link
• The Apprentice
Social Procurement or Social Commissioning
Social Procurement • The generation of social value through purchasing and procurement processes
Social Commissioning
• A strategic approach to the generation of socio‐economic outcomes through the procurement of goods, works and services
Social Outputs v Social Outcomes • Social output = activity
• Running a lunch club for older people
• Social outcome = impact • Feeling less isolated and more mobile • Time in the community away from usual environment/ carers
• A regular healthy cooked meal
Socio‐ Economic Benefits
Government • Boosting the economy – supply chain distribution
• Value for money‐ increasing competition
• Growth and innovation
• Employment • Local investment and participation
• Urban and community regeneration
• Livability and community well‐ being Industry
• SME opportunities
• Skills legacy
• Workplace health and safety
• Building workforce capacity and capability • Workforce retention
• Global competitiveness
Private sector
• Competitive advantage
• Corporate social responsibility
• Accessing local skills • Employee retention
Socio‐Economic Benefits
Project and Operational Service delivery
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Setting new benchmarks
Demonstrating VFM
Productivity, quality and safety
Mitigating skills shortages and gaps
Equality and diversity
Ethical and social reputation
Developing a skills bank in the public and private sector Communities and Individuals
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Local Employment
Career progression and skills development
Improving access and participation for minority and disadvantaged individuals and communities
Increased social and economic capital‐ community health and well‐being
Inspiring future talent into industry
Re‐trenching and transferable skills
Local business and social enterprise opportunities
The Evolution ‐ UK
• Public Sector ‐Section 106 • Planning obligations to offset negative impacts caused through construction and development
• Private Sector ‐Corporate Social Responsibility
• Sustainability ‐ triple bottom line principles
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BS8903 ‐British Standard for Sustainable Procurement
• Responsible / Sustainable Procurement Policies • Public Services (Social Value) Act 2012 • Legislative requirement for public authorities to have regard to economic, social and environmental well‐
being in connection with public services contracts
Public Sector ‐ Social Commissioners NSW
• North West Rail Link and Sydney Rapid Transit
• Sydney Light Rail
• TfNSW– extended operating model
• WestConnex
Interstate • Gold Coast Light Rail
• Capital Metro, ACT
International
• London Olympics 2012
• Greater London Authority
• UK Nuclear Program
• Local Government (Public Sector – Social Value Act)
Case Study – The London Story “Responsible Procurement means pioneering socially, environmentally and economically responsible procurement to deliver improved quality of life and better value for taxpayers, our people, our businesses and our City”
Key themes • Strategic Labour Needs and Training (SLNT)
• London Living Wage (LLW)
• Freight and Cycle Safety
• SMEs and Diverse Suppliers
• Equality and Diversity
• Environment
• Ethical Sourcing
Delivery
• London 2012 Olympics
• Greater London Authority
• Crossrail
• Transport for London • Metropolitan Police
• London Fire Brigade London 2012 – Procurement Policy
• EU procurement regulations • Balanced Scorecard: Balancing cost, time and quality with Olympic Delivery Authority (ODA) corporate values and objectives
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Safe and secure Equalities and inclusion Environment
Quality and Functionality
Legacy
• Supply chain obligations
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CompeteFor – opening up private sector procurement opportunities to SME’s
ODA Balanced Scorecard
Crossrail
Europe’s largest infrastructure project ‐ £15bn value. Stretching across London, the new railway will cover over 100km of track including 21km new twin‐bore rail tunnels and nine new stations
UK Workforce Demand
• 3,500 tunnelling and underground construction workforce requirement on Crossrail World wide demand
• UK Nuclear Program
Europe
• Thames Tideway
• Dublin Metro
• Northern Line Extension
• Copenhagen Metro Phase 2)
• HS2
• Spain – high speed rail (Barcelona – Gerona)
• Cologne Metro
• Hamburg Metro
• Austria‐ numerous Hydro Tunnels
• Thessalonika Metro
Asia
•Hong Kong Express Rail Link & Singapore Downtown Line 2 & Kuala Lumpur MRT
Crossrail – Creating a Legacy
• £42bn benefits to UK economy
• UK – wide economic benefits via supply chains
• 75,000 business opportunities
• 55,000 full time equivalent jobs • Embedding new approaches to public procurement – triple bottom line
• Revitalising industry ‐ skills shortages and gaps
• 25 year pipeline of major infrastructure projects
• Setting new benchmarks in health, safety and workforce development
• Supplier diversity
• Ethical trading • Skills legacy
• Increase global competitiveness
Crossrail Mayoral Priority • Supporting Londoners to improve their skills, job and advancement prospects through integrated employment support and training opportunities
Crossrail Act: Undertakings and Commitments
• Use all reasonable endeavours to encourage recruitment of local people to jobs on the construction of Crossrail: To work with local partnership agencies/organisations, where appropriate, for local labour and skills training
Transport for London – Responsible Procurement Policy Skills & Employment Strategy • Maintaining Safety • Inspiring Future Talent • Local Labour • Revitalising our tunnelling skills base
Contractual Obligations
• £ value based outputs
• Job Brokerage
• CompeteFor procurement portal
• Flow down commitments
• Building SME and Social Enterprise capacity to access supply chains
Crossrail Skills & Employment Pledges
Priority targets (50% +)
• Apprenticeships
• Creation or safeguarding jobs via Crossrail contractors
• ‘Local’ and long term unemployed
• Sustainable -26 weeks +
• Safeguarding – ex London 2012
• Crossrail Job Brokerage Service – mandatory requirement
Other targets (up to 50%)
• Workforce skills: re-skilling & up-skilling (mandatory qualifications for underground workers)
• Graduate training schemes
• Work placements & tasters – young people and adults
Access to:• Pre-employment training
• Job opportunities
• Post –employment support
• Skills development
• Young Crossrail
Crossrail – Skills and Employment Delivery
Partnership Approach
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National and local government agencies
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Industry
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Training providers and industry skills councils
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Contractors
Client
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Executive leadership
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Skills and labour forecasting – mapping supply and demand
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Local Skills and Employment Hubs •
Funding applications
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Pre‐employment training‐ access for new local entrants
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Setting new benchmarks ‐mandating qualifications and cards to drive workforce capability and transferable skills
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Developing supply chain capacity ‐ SMEs
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National profile Industry
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Defining occupational standards for new roles
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Support for RTOs ‐ Train the trainer and industry up‐skilling
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Qualification development and training for new and emerging technologies
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Client collaboration to drive industry change and inform government decision‐making Crossrail ‐Key Achievements 2010‐2013 Economic Progress
• 97% of Crossrail –related contracts held by UK companies
• Supply chain:‐
• 62% businesses winning bids are outside London
• 60% FTE jobs outside London
• 62% contracts held by SME’s
Equality, Opportunity and Social Inclusion
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2900 new local jobs for unemployed people via job brokerage service
86% jobs filled by Londoners
62% new entrant jobs filled by previously un‐employed people
375 apprentices on formal apprenticeship schemes
44% apprentices previously not in work or education, double the UK average
33% women, UK construction industry average 20%
24% ‐ Black and Minority Ethnic (BAME) – UKCG average 5%
Crossrail ‐ Key Achievements 2010‐2013 Workforce up‐skilling • 7000+ individuals undertaken accredited training
• 500+ work experience and placements
• 250+ graduates on formal graduate schemes
• 5000+ completed Tunnel Safety Card training and testing
• 5000+ truck drivers trained
• £15m funding to support skills and employment delivery
Wider legacy achievements
• Tunnelling and Underground Construction Academy • Specialist facility and plant
• Industry and government sponsorship
• New industry qualifications, apprenticeships and licences
• Skills and labour forecasting tool
• Innovative multi‐agency approach
• Influencing government procurement policy and strategy
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Lessons Learnt
Collaboration, Collaboration, Collaboration
Transformational possibilities of major projects Objectives – relevant and appropriate to project, location and future industry requirements Selling the benefits to all stakeholders‐ what’s in it for them? Contractual obligations across strategic skills requirements
Procurement – enforceable targets, measurable outcomes and KPIs
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Tracking and reporting progress •
Leadership and ownership
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Supply chain engagement
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Embedding CompeteFor across all procurement •
Job Brokerage to maximise local employment opportunities
Future Projects
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Thames Tideway
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UK Nuclear Program
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Better alignment with Infrastructure UK to identify future pipelines of work
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High Speed 2 (HS2)
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Sharing good practice across the UK
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Northern Line Extension
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Operations and services contracts opportunities North West Rail Link
North West Rail Link
$8.3 billion budget
Open by late 2019
First stage of rapid transit Context and Alignment Commonwealth Government • COAG – National Agreement for Skills and Workforce Development • Department of Employment‐ employment objectives • Department of Industry – industry capacity and skills objectives
NSW Government • NSW 2021 – Goal 1 – Improve the performance of the NSW economy, Goal 6 – Strengthen NSW Skills Base
• NSW Procurement Strategic Directions 2014‐15
• NSW Training Management Guidelines • Aboriginal Participation in Construction Guidelines – indigenous procurement policy update
TfNSW
• Corporate Plan‐ Theme 5 ‐Support the development of a capable, cohesive and safe workforce
• Long Term Transport Master Plan
• TfNSW Environment and Sustainability Policy Framework • TfNSW Diversity Policy (draft) – 2014
Context and Alignment Greater Western Sydney – regional context
• Regional Leadership Group (DPC )
• GWS Social procurement Forum • Premier's commitment – 1000 apprentices
• Regional youth unemployment statistics
Industry
• NSW ‐ The Infrastructure State • Infrastructure pipeline – capacity to respond • Concurrent delivery = competition, cost, skills shortage
• Consecutive delivery = transferable skills and employment
• Civil Contractors Federation NSW Forecasting Report – 40% skills shortage within three years
• SkillsDMC E‐ Scan – aging workforce, skills gaps and shortages
NWRL Workforce Development Strategy
Benefits align with ‘NSW 2021’ and NSW Training Management Guidelines
Key objectives
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support local labour force participation
resolve skills shortages locally and nationally through targeted skills development
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maintain competitiveness of the construction sector by attracting skills locally and nationally
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ensure procurement decisions in the transaction management phase support state and federal efforts to increase workforce participation
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encourage the next generation to pursue careers in engineering and construction
NWRL has an endorsed implementation plan to support the strategy
NWRL Workforce Targets Example workforce development targets in contracts
 % of total workforce that are
apprentices / trainees from
Greater Sydney area
 % of total workforce sourced
from Greater Western Sydney
area
 % of workforce participating in
national recognised accredited
training
 Workforce diversity and
disadvantage groups
 Work experience, education
placements and graduate
opportunities
Mandated requirements are embedded in contracts to support the achievement of targets
Shared ownership of a workforce legacy
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Skills and Employment Advisory Group
NWRL
Dept. of Employment Dept. of Industry
NSW Dept. Education & Communities
State Training Services
Civil Contractors Federation‐
NSW
Skills DMC – ISC
Transport & Logistics ISC
TAFE
NWRL Principal Contractors Key initiative: NWRL Skills and Employment Advisory Group (multi‐
stakeholder group)
NWRL Achievements to date
Partnerships
• Skills & Employment Advisory Group established
• Lead training provider appointed –TAFE WSi
• Employment services provider ‐ Breakthru
Contracts
• Workforce targets and reporting across all contract packages
Programs
• Pre‐employment training programs TSC Tunnel Competency and Training Program
Funding • External funding accessed to support pre‐employment training
Shared legacy
• Approach adopted on Sydney Light Rail, Canberra Metro, WestConnex
• TfNSW policy development • GWS Social Procurement Forum (DPC)
• Infrastructure Sustainability Council of Australia workforce theme development
Legislation and Local Government The Public Sector ( Social Value ) Act
2012
London Borough of Croydon Demographics
• Population ‐ 365,000
• Highest number of 0‐16yrs in London
• Highest proportion of Black and Minority Ethnic
• Children in poverty range – 27‐50%
• Some of highest house prices in UK
• 59% home ownership
• 40% degree –qualified
• High crime rates in some wards
• Gang crime
• Croydon riots – 2011
Legislation and Local Government London Borough of Croydon
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Applying the Social Value Act through social value commissioning
Development of a Social Value Toolkit for Commissioners Capacity building local suppliers and social enterprises
Skills centres located within communities
Council contracts ‐ local business and social enterprises‐ social housing, street cleaning and maintenance
• Developing social enterprises and public sector ‘spin‐offs’
• Supporting social cohesion and economic development
It’s all about Gina …..
Deathstroke Regina Chester Jefff Dave Dum Dee Dum Tumblepot ‐ was Regina Dee Gardner
‐ NEET – not in employment, education or training
‐ seeking employment in male‐dominated industry Gina
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accessed Crossrail’s job brokerage service
attended Tier 1 contractor assessment day
gained employment as an Engineering Technician (Apprentice) in 2011
working in high risk tunnelling environment at Whitechapel Station
won ‘Apprentice of the Year’ is now working towards becoming an Incorporated Engineer
- Is an Outcome Any questions ?