Procurement Reform (Scotland) Act 2014: statutory guidance

Annex A: Community benefit requirements in procurement

Annex A.1. Community benefit requirements - key National Outcomes

Research published in June 2015 illustrates the link between community benefit requirements and national outcomes. The table below lists key national outcomes and typical corresponding community benefits.

2
We realise our full economic potential with more and better employment opportunities for our people

• Recruitment from priority groups^[48].
• Apprenticeships from priority groups.
• Opportunities in the supply chain for SMEs and third sector bodies (will generate further employment outcomes).

3
We are better educated, more skilled and more successful, renowned for our research and innovation

• Work placements/work experience
• Training (to meet market needs) – for example

S/ NVQs or equivalent for existing employees, new entrants or subcontractor staff.

4
Our young people are successful learners, confident individuals, effective contributors and responsible citizens

• Apprenticeships and job opportunities targeted at young people.
• Work experience placements for young people at school, college and university.
• Support to young people to become successful learners, confident individuals, effective contributors and responsible citizens – including school visits, structured career events for school pupils or college students, mentoring, mock interviews and assistance with CVs.

7
We have tackled the significant inequalities in Scottish society

• Requirements targeted at specific groups (for example long-term unemployed, residents of deprived areas, ex-offenders, recovering drug users) – thus contributing to a reduction in inequality.

Where the contract or framework can accrue these or similar benefits – for example contributing to the Reducing Reoffending (Justice) or Healthy Living (Health) through employment and training opportunities – community benefits should be used. For example: the NHS has a general duty to improve the health of the population of Scotland, clauses that seek to improve employment opportunities for the population at risk of ill health (including: young people, those with a disability and long-term unemployed) are likely to be relevant to them.

In addition to the established benefits listed above other benefits include:

• supply chain development
• community engagement events
• professional advice to communities

Annex A.2. Monitoring and reporting

Research published in June 2015 included recommendations on information that should be reported to gain an understanding of how community benefit requirements are contributing to local and national outcomes. The table below includes these recommendations.

Suggested summary information

Use of community benefit requirements in procurement

• Total Number of Contracts Awarded
• Total Number of Contracts Awarded Over £4 million
• Total Number of Contracts Awarded with Community Benefit Requirements
• Total Number of Contracts Awarded Over £4 million with Community Benefit Requirements

Key contract information

• Total Value of Contract
• Number of Jobs Filled by Priority Groups
• Number of Apprenticeships Filled by Priority Groups
• Number of Work Placements for Priority Groups
• Number of Qualifications Achieved Through Training by Priority Groups
• Total Value of Works Sub-Contracted to SMEs
• Total Value of Works Sub-Contracted to Social Enterprises
• Total Value of Works Sub-Contracted to Supported Businesses

Short-term sustainability indicators

• Number of Recruits from Priority Groups Employed at 26 Weeks After Job Start
• Number of Apprenticeships from Priority Groups Employed at 26 Weeks After Apprenticeship Start
• Number of Work Placements for Priority Groups Subsequently Recruited by Contractor/Sub-Contractor

As evidence of community benefits delivery accumulate through monitoring and reporting, further indicators may be developed.

Suggested detailed contract information

To inform organisational compliance with the community benefits provisions of the Act, at a local level, for each contract containing the requirements, the following information could be collected:

Key contract information

• Total Value of Contract
• Total Value Sub-Contracted
• Total Value Sub-Contracted to SMEs
• Total Value Sub-Contracted to Social Enterprises

Community benefit requirement indicators

• Total Number Recruited to Deliver Contract
• Number of Jobs Filled by Priority Groups
• Total Number of Apprenticeships Recruited to Deliver Contract
• Number of Apprenticeships Filled by Priority Groups
• Number of Work Placements for School Pupils, College and University Students
• Number of Work Placements for Priority Groups
• Number of Qualifications Achieved Through Training by Priority Groups
• Number of Qualifications Achieved Through Training by Other Employees
• Community Engagement Activities