Procurement Toolkit

National Procurement Strategy
for Local Government

in England 2018
Delivering the ambition
Introduction
This toolkit has been developed to support delivery of the

National Procurement Strategy for Local Government in
England 2018.
Its purpose is to help councils, and groups of councils,

to set objectives in relation to the maturity levels in each
of the key areas of the strategy and to assess their own
progress against those objectives.
Showing leadership
Key area: Engaging councillors

Description: Engaging councillors refers to the engagement of councillors in the leadership and governance of council procurement
and commercial activity. This includes both the Cabinet/portfolio holders and overview and scrutiny members. To perform
their roles effectively councillors must be equipped with the necessary skills and value and benefit from good procurement
and commercial advice.
Help: What it is: Councillors set the council vision and strategic priorities and must be satisfied that the procurement and commercial
arrangements for their delivery are robust. Councillors make key decisions, particularly in major projects, and maintain oversight
of the performance of key contracts, agreeing corrective action where necessary. Councillors need to be fully engaged in these
roles. Councillor engagement needs to be supported through training, good procurement and commercial advice and reporting
arrangements.
Why it is important: When councillors are fully engaged with procurement and commercial matters, the quality of
decision-making is better and oversight and accountability are improved. Among other things, councillor engagement
leads to better project delivery and better outcomes for the local community.
High level principle/ Minimum Developing Mature Leader Innovator
specific behaviour:
Councillors regard The council is exploring Councillor engagement Councillor engagement Councillor engagement
procurement and the best approach to is delivering better is delivering better is contributing to the
commercial issues councillor engagement results across all results across all success of a combined
as purely operational in procurement and procurement and procurement and authority/group of
matters. commercial matters. commercial activity. commercial activity. councils project or
another innovative
project.
National Procurement Strategy for Local Government in England 2018 3

Key area: Engaging councillors
specific behaviour:
Councillors regard The council is exploring Councillor engagement Councillor engagement Councillor engagement
procurement and the best approach to is delivering better is delivering better is contributing to the
commercial issues councillor engagement results across all results across all success of a combined
as purely operational in procurement and procurement and procurement and authority/group of
matters. commercial matters. commercial activity. commercial activity. councils project or
another innovative
project.
Procurement and Councillors recognise The council is exploring Procurement and The portfolio holder (or The portfolio holder (or
commercial champions the role of procurement the best way for commercial are equivalent) is making a equivalent) is making an
and commercial in councillors to champion within the portfolio of demonstrable impact impact on a combined
delivering the council’s procurement and a Cabinet member on council procurement authority/group of
vision and strategic commercial matters. (or equivalent and commercial councils project or
priorities. arrangements). activities. another innovative
project.
Reporting Councillors in executive Council is exploring Councillors receive Councillors are Enhanced reporting
and overview and better ways of informing regular briefings and performing their roles extends to combined
scrutiny roles receive councillors about reports, going beyond more effectively due authority/group of
reports required for procurement and formal requirements, to enhanced reporting councils projects
formal decision-making commercial activities. which highlight arrangements. and other innovative
and reviews. the contribution of projects.
procurement and
commercial.
Training and No formal training Some councillors have Councillor development Development Development equips
development for councillors on attended relevant programmes include programmes have councillors to play
procurement and training courses. procurement and resulted in better their role in combined
commercial issues. commercial modules for councillor engagement authority/group of
all participants. with procurement and councils projects
better decisions. or other innovative
Training equips
projects.
councillors in executive
and overview and
scrutiny roles to ask the
right questions.
4 National Procurement Strategy for Local Government in England 2018

Key area: Engaging senior managers
Description: Engaging senior managers refers to the corporate management team valuing and benefiting from procurement and commercial at
all stages of decision-making, including early advice on major projects.
Help: What it is: Key decision-makers value and benefit from procurement and commercial advice, including advice at the early stages
of major projects. This is a two-way process requiring action by senior managers on the one hand and by procurement and
commercial advisors on the other.
Why it is important: Good procurement and commercial (wherever possible, provided in-house or shared between councils)
can have a decisive impact on the outcome of a project, particularly one involving innovation. It is important that senior managers
engage with the procurement and commercial issues from the earliest stages of the project.
specific behaviour:
Senior management The council is exploring Senior managers Council demonstrating Council procurement
regard procurement the best approach to engaged with better results from and commercial
and commercial issues obtaining procurement procurement and early procurement and advice valued by
as purely operational and commercial input commercial issues, commercial advice on leaders of combined
matters. into decision-making. routinely taking advice projects. authority/group of
at key decision points. councils projects or
in connection with an
innovative project.
Influence and impact Procurement and Contribution of Contribution recognised Representation on Representation on
commercial is procurement and through representation corporate management combined authority/
contributing but commercial has been on corporate team contributing group of councils,
contribution is not noted on isolated management team. to better strategic decision-making bodies
visible to senior projects. planning, coordination or governance structure
managers. and decision-making. of an innovative project.
Mission and strategy Obsolete procurement Procurement strategy Council has approved Council has approved Council committed to
strategy or no being reviewed and a procurement strategy procurement and providing procurement
procurement strategy. refreshed. aligned to corporate commercial mission and commercial
and service strategies. to harness supplier support to combined
innovation. authority/group of
councils approach
to the harnessing of
supplier innovation or
other approaches to
innovation.

Key area: Engaging senior managers
specific behaviour:
Senior management The council is exploring Senior managers Council demonstrating Council procurement
regard procurement the best approach to engaged with better results from and commercial
and commercial issues obtaining procurement procurement and early procurement and advice valued by
as purely operational and commercial input commercial issues, commercial advice on leaders of combined
matters. into decision-making. routinely taking advice projects. authority/group of
at key decision points. councils projects or
in connection with an
innovative project.
Processes Ad hoc approach to Structured approach Structured approach Demonstrably better Arrangements for
managing projects. but not explicit about to project management outcomes from combined authority/
role of commercial and clearly defining roles projects due to early group of councils
procurement advice. and responsibilities in procurement and joint projects or other
relation to procurement commercial advice. innovative projects
and commercial advice. provide for early
procurement and
commercial advice from
the council.
Training and No formal training Some senior managers Senior manager Development Development equips
development for senior managers have attended training development programmes have senior managers to play
on procurement and courses. programmes include resulted in better their role in combined
commercial issues. procurement and engagement with authority/group of
commercial modules for procurement and councils projects
all participants. commercial and better or other innovative
decisions. projects.

Key area: Working with partners
Description: Working with partners refers to a ‘one team’ approach to the design and implementation of solutions for public services which
spans council departments and organisations.
Help: What it is: The council works as a single team to design and implement solutions for public services and commissioners/budget
holders, and commercial and procurement advisors work together as part of that team.
Why it is important: A team approach is the best use of limited resources and can lead to innovative solutions and better results.
The team approach should characterise how council departments work together and how the council works with other councils,
health, fire, police, housing, VCSEs and other partners.
specific behaviour:
There are teams but Council acknowledges Designing and Designing and Designing and
they work in isolation the business case implementing solutions implementing solutions implementing solutions
from commercial and for a cross-council as a single team in high is the council’s normal as a combined authority
procurement advisors. approach to design value/high risk projects. way of working (policy). or as a group of
and implementation of councils/with health,
solutions and is seeking fire, police, housing,
to encourage this. voluntary, community
and social enterprises
(VCSEs) and other
partners.
Culture Silo working is not Benefits of a change Working as a single Working as a single Team successes,
questioned. in culture recognised. team is ‘the way we do team is the norm when including significant
Pilots challenging things here’. the council cooperates innovations, reinforce
attitudes and with external partners. the culture.
behaviours.
Governance and Departments generally Lessons being learned The team approach is The team approach is Peers acknowledge the
processes have their own from pilot projects for supported by: supported by: transformational results
arrangements and planning and budgeting being achieved through
• corporate and • joint planning and
processes. processes, project partnership working
service planning and budgeting processes
management and (including governance,
budgeting processes • common approach to
governance. processes and
• a structured project management. project management
approach to project • strong cross- arrangements).
management organisation
• effective governance governance
arrangements. structures.

Key area: Working with partners
specific behaviour:
There are teams but Council acknowledges Designing and Designing and Designing and
they work in isolation the business case implementing solutions implementing solutions implementing solutions
from commercial and for a cross-council as a single team in high is the council’s normal as a combined authority
procurement advisors. approach to design value/high risk projects. way of working (policy). or as a group of
and implementation of councils/with health,
solutions and is seeking fire, police, housing,
to encourage this. voluntary, community
and social enterprises
(VCSEs) and other
partners.
Training and Training and Training programmes Training programmes Training programmes Other public bodies
development development under development. cover ‘soft skills’ of cover ‘soft skills’ of regard the council’s
programmes do not partnership working partnership working approach as exemplary
cover partnership as well as council and shared processes. practice and involve
working. processes. council staff in their own
training programmes.

Key Area: Engaging strategic suppliers
Description: Engaging strategic suppliers refers to the process of identifying strategic suppliers and engaging with them to improve
performance, reduce cost, mitigate risk and harness innovation.
Help: What it is: The council takes a strategic approach to the management of relationships with the most important suppliers
(otherwise known as Strategic Supplier Relationship Management). This activity should be carried out cross-department and is
most effective when done cross-organisation.
Why it is important: Effective management of strategic supplier relationships can deliver a range of benefits including improved
outcomes for the public, added social value, reduced cost, reduced risk and innovation.
specific behaviour:
Firefighting. Ad hoc Acknowledges business Delivering programme Playing a leading Playing a leading
engagement with case for improved of engagement with role in programme role in programme
important suppliers, strategic supplier strategic suppliers at of engagement with of engagement with
usually when there is a management and is council level. strategic suppliers at strategic suppliers at
problem to be resolved. piloting engagement. combined authority/ regional/national level.
group of councils level.
Data collection and 1. No common basis for Council has partial 1. Council routinely 1. Council shares data 1. Council participates
analysis departments to collect data and intelligence collects and analyses and intelligence on in regional/national
data and intelligence on on its suppliers and is data and intelligence on performance, cost, data and intelligence
suppliers. developing criteria it will supplier performance, financial status, added sharing.
use to identify strategic cost, financial status, social value and risk.
2. No system for 2. Contributes to
suppliers. added social value and
sharing and analysing 2. Contributes to analysis of data
risk.
departmental data. analysis of data and identification of
2. Council strategic and identification of strategic suppliers at
3. No agreed definition
suppliers identified strategic suppliers at regional/national level.
of a ‘strategic’ supplier.
according to agreed combined authority/
criteria. group of councils level.
3. Council has visibility
of strategic supplier
supply chains.

specific behaviour:
Engagement of existing 1. Roles and 1. Evaluating toolkits. 1. Roles and 1. Combined authority/ 1. Regional/national
strategic suppliers responsibilities in responsibilities group of councils lead role for strategic
2. Piloting engagement
relation to strategic allocated for monitoring lead role for strategic supplier monitoring and
with a major supplier.
suppliers not defined. and engaging strategic supplier monitoring and engagement.
suppliers. engagement.
2. Engagement (when it 2. Leading delivery
happens) is firefighting 2. Engagement toolkit 2. Leading delivery of a programme of
in response to a crisis. adopted. of a programme of engagement with one or
engagement with one or more regional/national
3. Supply chain risk
more shared strategic strategic suppliers.
assessment carried out.
suppliers.
3. Regional/national risk
4. Programme of
3. Undertaking joint risk assessment.
engagement to
assessment.
identify and realise 4. Using regional/
opportunities for cost 4. Using shared toolkit. national toolkit.
reduction, performance
5. Coordinating 5. Coordinating
improvement, added
improvement/cost improvement/cost
social value, mitigation
reduction planning and reduction planning and
of risk and so on.
contingency planning contingency planning at
5. Improvement/cost at combined authority/ regional/national level.
reduction plans in group of councils level.
place. Contingency
planning where there is
significant risk.

specific behaviour:
Early engagement with Not recognised as 1. Some information 1. Future needs 1. Combined authority/ 1. Regional/national
future strategic suppliers important. on forward plans signalled to the market group of councils lead role for market
published. using a variety of lead role for market engagement.
channels including engagement.
2. Experience of early 2. Leading early
publication of pipeline
market engagement 2. Leading early engagement for a
information and
on at least one council engagement for a joint regional/national
engagement events.
project. project. project.
2. Normal practice
to engage early with
bidders on significant
projects to encourage
innovative solutions.

Behaving commercially
Key area: Creating commercial opportunities

Description: Creating commercial opportunities refers to how an organisation promotes revenue generation and value creation through the way it
plans its major third party acquisitions (works, services and goods); reviews its business options (make or buy); engages with, and
influences, markets and potential suppliers; seeks to support and encourage innovation; and promotes the development of new ideas
and solutions to service delivery.
Commercialisation is a broad subject and this key area is confined to how procurement teams should contribute to its successful delivery.
Help: What it is: There are many ways in which commercial opportunities can be created through the strategic management of the
commercial cycle and the services and assets delivered through the contracts it creates. Commercialisation is a broad and
important subject to the sector. This key area is confined to how procurement teams should contribute to helping identify and
create commercial opportunities.
Why it is important: As grants from central government are reduced, organisations are required to look at other means of
reducing funding deficits. Commercial opportunities can be created in many different ways, from conventional means such as
increasing returns on assets to the way it engages with its development partners and third party contractors.
specific behaviour:
Focused on business as Some high value/high Clear understanding Revenue generation and Organisations
usual and compliance. profile acquisitions of the ways in which potential wealth creation work collectively to
examined for new revenue generation is a standard part of identify and exploit
creating commercial opportunities can be all contract review new commercial
opportunities. created across the meetings. opportunities through
commercial cycle. market shaping and
Procurement staff
shared working with
End-to-end policies and are encouraged to
development partners
processes promoting enhance commercial
this approach in place skills and demonstrate Organisations see
across the organisation. commercial behaviours. staff innovation and
knowledge/information
utilisation as a
commercial opportunity.

specific behaviour:
Procurement staff
shared working with
utilisation as a
Forward planning Some forward planning Forward planning is Forward planning is Forward planning Forward planning for
is undertaken but with undertaken in some always undertaken for contracts has contracts is undertaken
a focus on process areas and/or for some across the organisation developed to form an across multiple
compliance. acquisition types. for all strategic integral part of the organisations in order
contracts. organisation’s budget to maximise leverage
Opportunities to create
setting and expenditure and commercial
new revenue streams is Opportunities to create
forecasting process. attractiveness to the
sometimes investigated new revenue streams
market.
in some departments is considered by all Procurement is able
and for some departments and for to contribute ideas for
expenditure categories. all relevant expenditure revenue generation in
categories. the forward planning
process.
Procurement
encouraged to
contribute ideas for
revenue generation in
the forward planning
process.

specific behaviour:
Procurement staff
shared working with
utilisation as a
Options appraisal Sometimes undertaken, Undertaken for high A policy exists, setting Options appraisal Expanded to include
(Make or Buy) but only seen as an profile/high value out how and when includes seeking alternative service
in-house/outsource projects and exercises. options appraisal must commercial delivery vehicles,
decision. be applied and is used opportunities and/ includes creation of
Evaluation criteria
by all departments. or collaborative new trading companies,
sometimes
contracting with others seeking commercial
incorporating Clear guidance on
in the sector. opportunities and/
commercial and social how to identify and
or collaborative
considerations. evaluate ‘make or buy’ Creation of new models
contracting with other
options, including for delivering services.
organisations in the
commercial and social
Procurement viewed as wider public sector.
considerations, is in
an integral aspect of
place and widely used.
options appraisals.
Procurement is
consulted on options
appraisals.

specific behaviour:
Procurement staff
shared working with
utilisation as a
Market and supplier Sometimes undertaken Undertaken when a new A policy exists, setting Outcomes from market Outcomes from
Research and analysis if time permits or there requirement is sought out how and when and supplier research market and supplier
is a political imperative. and/or where there have market and supplier are used to shape and research are used in
been problems on an research/analysis determine the content collaboration with other
earlier contract. must be undertaken and timing of the organisations in the
and is used by all procurement process wider public sector for
Research sometimes
departments. used. seeking and exploiting
includes looking
new commercial
for commercial Clear guidance on how Outcomes are also
opportunities.
opportunities or gaps in to interpret and apply used to contribute to
the market. the findings, including the risk management
commercial and social process and options
considerations, is in appraisal process.
place and widely used.
Procurement viewed
Procurement is asked to as an integral aspect
give advice on market of market and supplier
and supplier research. research and analysis.

specific behaviour:
Procurement staff
shared working with
utilisation as a
Tendering Mainly focused on Focus still on Innovation is seen by Tendering is seen as a Tendering opportunities
compliance and compliance and the organisation as an commercial process by are focused on
standard cost/quality standard cost/quality important factor in the the organisation. innovation and
ratios. ratios but innovation tendering process and opportunities and done
Documentation is
sometimes considered. scored at the evaluation in conjunction with
prepared to make
stage. development partners
Tenders mainly viewed it attractive to take
to maximise market
as legal documents Tenders viewed as part and is focused
attractiveness.
but written in plain needing to have a legal/ on innovation and
language. commercial balance are opportunities.
focused on attracting
Procurement is Procurement is seen as
the best bids.
sometimes invited an integral contributor
to contribute to the Procurement is asked to the planning phase.
planning phase. to contribute to the
planning phase.

specific behaviour:
Procurement staff
shared working with
utilisation as a
Performance reporting Performance reporting Performance reporting Performance reporting Performance reporting Aspirations and
is undertaken, but is undertaken and is undertaken and is seen as an integral performance reporting
restricted to the level includes commercial includes commercial part of the organisation’s is shared with other
savings made. and social benefits and social benefits culture with reports organisations in the
achieved as well as achieved as well as on commercial sector to maximise
and social benefits
savings but restricted savings across the potential leverage and
achieved included
to specific procurement whole organisation. influencing capability
in a performance
exercises and some dashboard. in markets and/or with
Procurement is asked
departments. development partners.
to produce summary An annual report for
Summary reports reports for chief officers the Leadership team
are produced by and elected Members and potential delivery
Procurement for service on a monthly basis. partners covering
heads on an annual achievements and
basis. aspirations is published
by the organisation.
Procurement is viewed
as an integral aspect
of performance
reporting and is viewed
by the leadership
as contributing to
commercialism.

specific behaviour:
examined for creating new revenue generation is a standard part of identify and exploit
commercial opportunities. opportunities can be all contract review new commercial
created across the meetings. opportunities through
Procurement staff
shared working with
utilisation as a
Post contract review Occasional post Post contract reviews Post contract reviews Contract reviews Contract reviews and
contract reviews undertaken, by most undertaken as part of and relationships are relationships are seen
undertaken, but departments and/or an organisational policy. seen as a continuous as a continuous process
restricted to some identified categories process and involve and fundamental to
Well defined
departments and/ of expenditure. development partners improved performance
criteria published
or categories of to ensure commercial and the creation of new
Seen as being an for undertaking
expenditure. and social opportunities opportunities.
integral part of post contract
are identified and
Seen as something improving outcomes reviews including Reviews are extended
exploited.
that is done after poor and identifying the identification to sector partners so
contract performance or commercial of commercial Procurement is seen as that supplier relationship
contract failure. opportunities. opportunities. an integral part of the management can
post contract review be undertaken in
Procurement is asked
process. partnership with
to support the post
multiple organisations.
contract review process.

Key area: Managing contracts and relationships
Description: Contracts and relationship management refers to the effective management and control of all contracts from their planned
inception until their completion by the appointed contractor(s). It covers the supporting policies, procedures and systems needed
to undertake it, together with broader issues from the identification and minimisation of risk, successful and timely delivery of
outcomes and performance, effective control of cost and variations and the maintenance of clear communications and operational
relationships with contractors.
Help: What it is: Contract and relationship management is the process by which all contracts and variations are managed effectively to
control costs, secure the quality and timeliness of agreed outcomes and performance levels and minimise the occurrence of risks.
Why it is important: Research by the International Association for Contract and Commercial Management (IACCM) shows that
contracts exceed their expected costs by 9.4 per cent on average over their lifetime. Poor contractor performance or commercial
failure can seriously damage a council’s reputation and its ability to deliver effective services and support to local communities.

specific behaviour:
Compliance Identified the need to All basic policies, Well-developed Contract and
driven. Reactive change and improve. procedures and policies, procedures relationship
approach to contract Basic policies, systems in place and systems in place management
and relationship procedures and to support contract to support contract recognised by the
management. systems in place. and relationship and relationship leadership team
management across the management. Used to as being essential
organisation and used drive forward planning, to driving ongoing
in all departments. cost control and improvement and better
contractor performance. service outcomes.
Systems, procedures
and staff delivering
consistently high
results.

specific behaviour:
Systems, procedures
consistently high
results.
Information storage and Basic contracts register Contracts register Contracts Register is Contracts Register Contracts Register
accessibility on a spreadsheet with exists with some dynamic and provided is dynamic and fully is complete and
limited accessibility. access possible, mainly through a purpose- accessible to all who accessible to all
viewing and searching built solution (in- need to use it. appropriate staff and
Data held is often
capability. house/ external C and is integrated with the
incomplete/out of date. Information is always
RM software/hosted financial system for
Data held is incomplete/ up-to-date with
service). forward planning,
out of date, but efforts comprehensive,
budgeting, asset
are being made to Fully visible to the complete and accurate
management and
increase data quality whole council with read/ records on all contracts.
expenditure reporting.
and the percentage of write/edit and search
Contracts register has
third party spend listed capabilities for all Contracts register
action/renewal alerting
on the register. contract owners and is used for forward
capabilities for contract
managers. planning and financial
owners and managers
modelling.
Complete data sets and in-built Learning
for all major third party Management capability.
spend.

specific behaviour:
Systems, procedures
consistently high
results.
Change control No change control A change control policy Change control policy All contract changes Details of all contract
policy in place except exists for capturing the implemented across the and variations changes and variations
for isolated contracts. details of any changes board for all contract processed through used for calculating
or variations made to changes and variations. change control stored impacts on budgets and
some contracts. on the contracts assessing contractor
Standard
register. risk/performance.
Standard documentation is
documentation is available and used in all Details shared online Cost/time overruns
available and used by circumstances across with contract managers, reported to service
some departments. all departments. owners and contractors. heads and Leadership
Team.
Supplier financial Recognition of need for Structured approach to Ad hoc inclusion of Standard supplier Implementing advanced
distress early engagement with early engagement of supplier financial financial distress clause approach to supplier
suppliers in financial suppliers in financial distress clause in included in all major financial distress
difficulties. difficulties. contracts. contracts for services. extending beyond
contract clauses.

specific behaviour:
Systems, procedures
consistently high
results.
Savings and benefits Savings and benefits A formal policy is in Savings capture from All contracts regularly A proactive system is
delivery are delivered from some place for capturing contracts and benefits reviewed to monitor in place in partnership
contracts but not a part savings and accruing realisation applied actual versus planned with contractors to
of any formal process. benefits from contracts uniformly across the spend. review all contracts for
but is not uniformly organisation and potential savings, cost
Opportunities
implemented. reported to chief officer reductions and benefits
for savings from
level. realisation.
specification and
performance reviews Contractors work with
are assessed on an the organisation on an
ongoing basis. ongoing basis to reduce
costs and eliminate
All benefits/savings
potential waste.
claimed in agreed
business cases
and/or promised
by contractors are
managed and accrued
to the organisation.

specific behaviour:
Systems, procedures
consistently high
results.
Recognition and cultural There is no recognition There is recognition Contract and Regular briefings The organisation is
acceptance by the organisation by the organisation Relationship and meetings are a sector exemplar
of contract and of Contract and Management is held to brief all staff with contract
relationship Relationship recognised by the involved in contract and relationship
management. management in some organisation as being and relationship management
departments. essential to its overall management firmly rooted in the
Only job roles which
performance. on commercial, management culture
are 100% designated to Job roles are
developments, and is able to advise
managing contracts are designated as contract Job roles are
new initiatives other organisations on
designated as contract manager and/or contain designated as contract
and professional how to achieve a similar
manager in their title. specific contract and and relationship
development. transformation.
management activity in manager and/or
their content description contain contract
in some departments and relationship
management activity in
their content description
as a formal policy.
Performance is
reviewed with job
holders in their annual
appraisals.

specific behaviour:
Systems, procedures
consistently high
results.
Skills and knowledge Staff have limited Staff have access Contract and Contract and Contract and
access to any contract to general contract Relationship Relationship relationship
and relationship management training Management is Management is management is
management skills given as a one- acknowledged as acknowledged as recognised as a
and knowledge off exercise rather a core competency a core competency profession where
programmes. than an ongoing across the organisation. across the organisation. staff are encouraged
skills enhancement and supported to
Briefings on Contract Staff are invited to
programme. advance their skills
and Relationship undergo advanced/
in the subject and/or
Management are specialist training where
acquire professional
given in all induction contract management
qualifications.
and management accounts for more than
programmes. 20 per cent of their job
role.
Refresher programmes
are available to all staff
involved in contract
and relationship
management.

Key area: Managing strategic risk
Description: Managing strategic risk refers to the impact by an external event, passing of a statute or illegal activity upon business as usual,
reputation and/or financial health of the organisation.
Help: What it is: A series of actions and policies designed to reduce or even eliminate the probability of a perceived risk occurring
and minimising the detrimental effects that may occur should it materialise.
Why it is important: The occurrence of any risk, particularly when it could be foreseen, can have a devastating impact
on the organisation’s reputation and the lives of the people it serves, the quality of the services that it provides, and even
its financial viability.
specific behaviour:
Compliance driven. Good awareness of Taking a proactive All vulnerable areas Effective policies
Doing enough to meet issues involved and approach to strategic identified and policies and plans in place
statutory requirements. potential threats with risk management with and plans in place in all areas, shared
basic systems in place all vulnerable areas and shared ownership, with contractors with
to manage should they identified and mitigating transparency and contingency plans
occur. policies and plans in reporting with in place and active
place. appropriate contractors. management of all
strategic risks.

specific behaviour:
strategic risks.
Fraud and financial loss The organisation does Basic systems, controls Systems in place to Well defined systems All internal systems
not see this as a priority/ and reporting in place target both financial in place targeting both covered and supported
is not aware, beyond to ensure compliance loss and fraud with a financial loss and fraud. by analytical software.
statutory compliance. and minimise potential proactive approach to
Active deployment Fraud detection checks
for financial loss from issues such as irregular
and use of analytical throughout supply
both internal and transactions, duplicate
software. chain.
external sources. payments, and fake
creditors/invoices. Audit teams working Potential collusion in
closely with all contracts and market
departments to make distortion actively
this a priority. investigated.
Supply chain and The organisation does Aware of the risks and Expenditure categories/ Effective policies Full picture of all high
contractor failure not see this as a priority/ issues involved and contracts where this implemented in risk suppliers and
is not aware, and will attempting to identify might occur identified. collaboration with contractors with supply
react to events. where this may occur. relevant contractors. chain vulnerabilities
A suitable policy
identified.
developed and risk
register with mitigating Active management of,
actions in place. and reporting against,
high risk suppliers and
their supply chains.

specific behaviour:
strategic risks.
Modern slavery The organisation does Aware of the legislation Expenditure categories/ All contracts where All appropriate
(Legislation) not see this as a priority/ and how it might contracts with potential modern slavery might contractors and
is not aware of its manifest itself in supply for modern slavery occur are known. their supply chains
obligations and duties. chains. identified. are known with risk
Agreed reporting
of occurrence fully
Basic checks made with measures and
managed.
appropriate contractors. compliance checks
agreed and Assisting other
implemented by organisations to
appropriate contractors. advance.
GDPR (Legislation) The organisation does Aware of legislation and Actively identifying and Pre-defined policy and Full understanding and
not see this as a priority/ taking steps to ensure reviewing contracts process in place to visibility of all existing
is not aware, beyond compliance. where data issues could identify contracts where and planned contracts
statutory compliance. occur. data issues will occur where data issues exist.
reflected in standard
Contractors fully
Terms and Conditions.
engaged and
Good engagement with contributing to
contractors. compliance and
transparency.

specific behaviour:
strategic risks.
External events (eg No consideration Keeping abreast with Monitoring the high Thorough Contingency plans in
Brexit) given to the impact central government value/risk contracts. understanding of place for all high value/
of external events on briefings and taking the possible impact risk projects.
Gaining visibility and
the functioning of the appropriate action, as on all high value/risk
understanding of Back-up suppliers
organisation. and when required. contracts.
vulnerabilities in supply identified.
chains and labour Contingency plans in
Fully engaged in
availability. place in the event of
discussions on how
contract failure.
best to exploit the
opportunities presented
by the post-Brexit
landscape.

Achieving community benefits
Key area: Obtaining social value

Description: Social value refers to wider financial and non-financial impacts of programmes, organisations and interventions, including the
wellbeing of individuals and communities, social capital and the environment. From a business perspective, it may be summarised
as the net social and environmental benefits (and value) generated by an organisation to society through its corporate and
community activities reported either as financial or non-financial (or both) performance.
Help: What it is: Social value is about improving economic, social and environmental wellbeing from public sector contracts over and
above the delivery of the services directly required at no extra cost.
Why it is important: Experience from procurements let by Councils that have fully included social value requirements has shown
that a minimum +20 per cent social value ‘additionality’ can be obtained on contract value by way of direct community benefits.

specific behaviour:
Compliant. Doing just Compliant but only Taking a proactive Social value embedded Social value is a
enough to meet the proactively seeking approach to integrating into corporate core operational
conditions of The Act. social value in a few key social value into strategy and have metric, integrated
contracts only. procurement and comprehensive into all directorates/
commissioning. frameworks for departments and
management and activities with regular
delivery. reporting against
targets.

specific behaviour:
targets.
Policy and scope Complies with the Act No specific policy in 1. A process and policy 1. Social value 1. Social value
by considering social place. Only complies is in place to identify requirements applied requirements applied to
value but not taking any with the Act (ie services which contracts should to supplies, works and grants, supplies, works,
action to implement. above EU procurement include social value. services above AND services AND planning.
threshold). below OJEU thresholds.
2. Justification 2. Innovators encourage
provided for a relevant, 2. Requirements are other work through
proportional and tailored to reflect size outside contracts, eg
considered threshold and scope of contract. through time banks,
over which social value charter accredited
3. Social value
should be included. organisations.
embedded into all
procurement routes 3. Specific policies in
where appropriate. place on stakeholder
involvement, materiality
assessment and
valuation. Policies
include coverage of the
Living Wage, ethical
procurement and
visibility of supply chain
adoption.
4. Policies are
consistent with the
policy criteria as set
out by level one of the
Social Value Certificate.1
dfdfdfsf1
1 Find out more about the Social Value Certificate: www.socialvalueuk.org/social-value-certificate

specific behaviour:
targets.
Internal management Not considered No senior officer given Councillor or cabinet 1. Individual named 1. Expectation that
important. a direct reporting board/authority member officer(s) given all officers take
responsibility for social given responsibility for responsibility for responsibility for
value. reporting leading on reporting to board/ managing and
social value. member councillor, delivering social value.
managing and
2. Social value used
delivering social value
as a KPI or as part of
across procurement
a balanced scorecard
and commissioning.
to assess progress
2. Relevant officers are at relevant cabinet or
provided with social scrutiny committee
value training and meetings.
resources to implement
3. Expectation that
social value strategy.
all officers take
responsibility for
managing and
delivering social value,
with individual named
officer responsible
for maintaining
the organisation’s
approach.

specific behaviour:
targets.
Measurement: Themes, No measurement Measuring some limited 1. Measure social value 1. Measure social value 1. Measure social value
outcomes and measures undertaken. form of social value, eg in non-financial terms in BOTH non-financial in BOTH non-financial
(TOMs) SME spend. against national TOMs. AND financial terms AND financial terms
against outcomes and against outcomes and
2. Golden thread
themes. themes.
maintained between
national TOMs, the 2. Local TOMs 2. Financial weightings
corporate strategy and (including values) adjusted according to
the social value policy. updated on an annual stakeholder feedback.
basis with evidence 3. Processes in place
3. National TOMs
and methodology to to allow local TOMs to
available on website, to
support. be updated according
all suppliers as a part
of social value policy. 3. Outcomes weighted to local community
systematically to council priorities.
and local priorities (ie 4. Other stakeholders
targeting). and public sector
bodies consulted
in development of
local TOMs including
health, education and
emergency services.
5. Suppliers are asked
to achieve, or be
working towards, Social
Value Certificate Levels
2 or 3 or equivalent.

specific behaviour:
targets.
Commissioning No attention given to Some attention given 1. Needs assessment 1. Social value threaded 1. Outcomes approach
commissioning for in larger contracts to used to update through commissioning taken to commissioning
social value, above and commissioning for approach to project cycle, procurement are of all services with
beyond the Act. social value. commission. involved throughout. cross departmental
collaboration including
2. Key projects re- 2. All new contracts
with Planning.
commissioned with assessed before
social value creation at procurement for their 2. Regular
their core. potential contribution to feedback between
social value objectives. Commissioning and
Procurement teams
to ensure local TOMs
3. TOMs adjusted to
remain ‘live’ and
against overall social
relevant.
value delivery strategy.
3. Social value mapped
4. For user department
to location of delivery
led projects, social
and measured as a
value is embedded
part of the evaluation
within guidance,
criteria.
resources, templates.
4. Outcomes updated
systematically to
build on stakeholder
feedback.

specific behaviour:
targets.
Procurement Social value not 1. Social value is 1. Social value 1. Social value 1. Specific social value
considered to mentioned in tenders requirements included requirements included commitments sought
provide any value to (where relevant) relating in all relevant tenders as in all tenders (contracts from tenders that have
organisation. to services but no a part of quality score. and frameworks). been open/transparent
weightings or specific to the public and
2. SV weighting as a 2. A specific scoring
score allocated. adapted to take account
part of quality score and weighting system in
of residents’ input.
2. Tenderers asked 5-10 per cent. place of at least 5 per
for social value cent of the total score. 2. Weighting system
commitments to improve in place of at least 10
3. Relevant ‘Gateways
the economic, social per cent of total score
and Checks’ in place to
and environmental unless a robust rationale
ensure consistency in
wellbeing of the for lesser percentage
tenders.
relevant area. exists.
4. Processes in place
to ensure lessons
across departments to
learnt and feedback
ensure consistency.
incorporated for
continuous practice
improvement including
policy and toolkit
development.

specific behaviour:
targets.
Market engagement and No engagement 1. Initial but ad hoc 1. Initiatives taken to 1. Regular ‘supplier 1. Specific initiatives
partnerships undertaken. steps taken in market build capacity and summits’ held to build taken to begin to
engagement around shape market with capacity AND to get build partnerships
social value. business community feedback. with business and
and the community the community and
2. Some information 2. Case studies and
and voluntary sector voluntary sector, such
is made available to examples of innovation
providers. as time brokerage and
suppliers to support provided to illustrate the
banking.
their understanding of 2. Project specific different levels/actions.
social value. market engagement 2. Promotion of
3. A market
offered/delivered B2B and B2Three
development plan
as relevant and relationships (for larger
forms part of the
appropriate. suppliers and long-term
policy underpinning
frameworks).
3. Works proactively commissioning
with suppliers development and action 3. Feedback
to support their plan. mechanisms are
understanding of social ongoing, including
4. A specific focus
value. an annual provider
on upskilling of local
satisfaction survey.
micro, small, medium
sized enterprises, 4. A cross sector
business and VCSE advisory group meets
organisations. regularly to provide
feedback.
5. Regular forums for
social value networking
and engagement.

specific behaviour:
targets.
Contract management Social value not sought Contracts not monitored Specific, targeted 1. Performance reviews 1. Benchmarking across
from contracts. in any coherent way for social value action and regular feedback all contracts shared
social value afterwards. plans agreed at and action taken to with other Councils to
commissioning/ ensure continuous establish best practice.
procurement stage improvements to social
2. Suppliers provided
and are bound into value implementation
with quarterly feedback
the contract and and delivery.
on progress.
performance monitored.
3. Clauses built into
to ensure lessons are
contracts to apply
learnt and feedback
service credits or
incorporated for
to recover costs of
continuous practice
replacement in the
improvement, including
event of non-delivery of
benchmarking and case
social value promised.
law.
3. Meetings regularly
held with contractors
to discuss delivery of
social value.

specific behaviour:
targets.
Cross sector Social value not Limited collaboration 1. Relevant public 1. Cross sector 1. Common set of TOMs
collaboration considered important. through joint occasional bodies identified such committee formed to created which all public
contract with other as Health, Education develop and manage sector bodies in region/
public sector bodies and Emergency the delivery of joined area use as a part of
held regarding social Services – preliminary up social value policies their commissioning/
value. discussions held. and shared TOMs. procurement and
reporting.
2. Unofficial sharing 2. Regular meetings
of data with ad hoc and feedback sessions 2. Regular cross
joint procurement/ held. sector meetings held
commissioning. to share feedback and
3. Shared
benchmarking.
implementation plan.
3. Opportunities
explored for shared
commissioning and
procurement.
4. Cost savings
identified and results
shared to help build
financial benefits.
5. Common reporting.

specific behaviour:
targets.
Reporting Social value not Limited or informal 1. Annual feedback 1. Regular feedback 1. Regular feedback
considered important. social value reporting to cabinet/scrutiny to cabinet/scrutiny to citizens on value
and feedback only. committee on social committee on social creation against
value creation. value. targets including local
performance.
2. Robust reporting in 2. Annual reporting
place on progress and includes benchmarking 2. Innovative ways
delivery and published and progress against of communication
annually. targets. employed to ensure
citizen feedback,
including provision of
data to location and
digital communication.
3. Evidence published
setting out impact
where social value
has made a difference
along with relevant case
studies.
4. Suppliers are asked
to produce Assured
Impact reports.

specific behaviour:
targets.
Governance and No visibility of issue at Council/authority has 1. Social Value Act 1. Cabinet member 1. Cabinet level scrutiny
accountability authority meetings. met the requirements mentioned in corporate has direct oversight of performance with
of the Act to ‘consider’ strategy. of social value regular reporting as
social value and this is performance. appropriate.
2. Social value
minuted.
recognised as a core 2. Social value has 2. Council/authority
principle supported been embedded into has set SMART targets
by a published social commissioning and and is prepared to be
value policy and procurement practice, accountable for these
implementation strategy. tools, resources and targets.
processes with a ratified
3. All relevant 3. For larger councils,
policy and toolkit that
documentation made targets are set for
are published.
available on web site. each department
3. Social value and reported against
implementation is annually.
underpinned by an
4. A cross sector social
overarching action plan.
value advisory group
4. Social value is is in place providing
measured and reported oversight, scrutiny and
on regularly. challenge.
5. Third party
verification is
provided on reported
social value content
(eg independent
assurance).

Key area: Local small medium enterprises (SMEs) and micro-businesses engagement
Description The usual definition of SMEs used in the public sector is any business with fewer than 250 employees and turnover of less than
£50 million. There were 5.2 million SMEs in the UK in 2014, which was over 99 per cent of all business. Micro-businesses are
business with 0-9 employees and turnover of under £2 million. For the purposes of this document the term ‘SME’ shall refer to both
SME and micro-businesses.
Help: What it is: SMEs are non-subsidiary, independent firms.
Why it is important: SMEs play a major role in creating jobs and generating income for those on low incomes; they help foster
economic growth, social stability, are a source of innovation and contribute to the development of a dynamic private sector. With
the potential localisation of business rates, it will be even more important for local authorities to encourage the establishment and
growth of SMEs in their areas.
specific behaviour:
Council does not SME organisations are Taking a proactive SME engagement SME engagement is
see any benefits to engaged in a few key approach to integrating is embedded into a core operational
be gained from SME contracts only. SME organisations corporate strategy. way of doing
engagement. into procurement and business, integrated
commissioning. into all directorates/
departments and
activities with regular
reporting against
targets.

specific behaviour:
departments and
reporting against
targets.
Policy and scope 1. There is no ongoing 1.Commissioners have 1. Commissioners have 1. Commissioners 1. Commissioners have
communication with started to communicate informed SMEs what engage regularly clearly set out how
SMEs regarding local what local needs are local needs there are with SMEs, both on SMEs should deliver,
needs, long-term and the desired market and the desired market an individual basis and to what standards.
strategies and desired outcomes. outcomes. and collectively to
SMEs can collaborate
outcomes. SMEs are achieve desired market
2. No policy or strategy 2. SMEs are with other organisations
unaware of their role outcomes.
in place for addressing encouraged to to effectively respond to
in responding to such
SMEs. collaborate with larger 2. Support is provided local needs, and meet
needs.
organisations to to SMEs to understand desired outcomes.
2. Services are respond to local need. how to respond to
2. Commissioners
commissioned Council requirements.
work with Economic
without thought about
3. Full policy or strategy Development and
engagement of SMEs in
in place to direct Procurement colleagues
the local area.
the organisation’s and have established
engagement with SMEs. how SMEs can be
engaged both directly
and through first tier
suppliers.
3. A senior responsible
officer has oversight
for SME strategy/policy
delivery.

specific behaviour:
departments and
reporting against
targets.
Facilitating good Fostering good Relationships There is There is responsive Commissioners
relationships with SMEs relationships with SMEs between SMEs and acknowledgment for willingness to facilitate proactively facilitate,
not deemed to be other providers are the convening role relationships between and nurture,
important. not facilitated. It is that commissioners SMEs and certain larger relationships between
not considered to can have and what the providers. Some of SMEs and a broad
be an area where benefit of facilitated the benefits of this are range of providers.
intervention is needed relationships between being realised.
In turn, SMEs created
or appropriate. SMEs and other
As a result of this, SMEs their own networks, and
providers could bring.
As a result of this, have formed some consortia with other
They have started to
there is an absence partnerships with larger providers.
make some efforts to
of consortia and providers.
bring these parties
networking in the
together.
locality.

specific behaviour:
departments and
reporting against
targets.
Commissioning 1. There is no or little 1. There is some 1. There is good 1. There is strong 1. SMEs’ ability to
knowledge of the local knowledge of how knowledge of how knowledge of the value provide niche, localised
expertise that SMEs can SMEs’ local expertise SMEs’ local expertise SMEs bring in providing and innovative services
bring to public services. can add value and can add value and niche, localised is being celebrated and
SMEs are not integrated attempts are made to attempts are made to services and actively drawn upon routinely.
into the wider service integrate them into the integrate them into the integrate them into their Their broad community
provision. wider service provision. wider service provision. service provision. outreach is actively
integrated into service
2. There is no SME 2. A limited number 2. SME representatives 2. A wide variety of
provision.
engagement throughout of ‘usual suspects’ are invited to contribute relevant SMEs are
the commissioning SMEs are invited to the commissioning proactively invited 2. SMEs have regular
process. There to contribute to the process. There to contribute to the and significant
are no established commissioning process. are some general commissioning process. opportunities to feed
communication There are some general engagement events There are some into public service
channels or designated engagement events and communication designated voluntary design through a host
engagement events for and communication channels. sector engagement of designated market
SMEs. channels that they can events and specified engagement events
3. There is interest
feed into but response communication and communication
3. There is no in SME partnership
is low/knowledge of channels. channels.
partnership working or working.
them is limited.
ongoing relationships. 3. Efforts are made to 2. Relationships with
3. There is interest establish continuous SME organisations are
in SME partnership partnership working strong and optimal for
working but no lasting with SME organisations. partnership working.
relationship has been
established.

specific behaviour:
departments and
reporting against
targets.
Market engagement and SMEs are not seen as 1. There is knowledge 1. SMEs are seen as 1. Good understanding 1. There is strong
partnerships important and there is of the SME landscape part of a diverse supply of the local SME understanding of the
no attempt to engage and the value they chain but they are not landscape and their SME sector and the
with them. could bring to public seen as a provider with value exists. social and financial
services but this is a particularly unique value they bring to the
2. There is a lead
unevenly distributed value. local area.
commissioning
across Council
2. Efforts are made contact who takes 2. There is a designated
departments.
to establish a lead some responsibility for contact who proactively
2. There is no particular contact for SMEs with facilitating SMEs’ input facilitates SMEs’ input
point of contact the view to upskilling into the commissioning into the commissioning
for SMEs. They are SMEs to participate in process. process.
assumed to understand procurement.
3. A conscious 3. A variety of support
the commissioning
3. There is awareness effort is made to is available to help
process and how to
of SMEs’ need for clarify language and SMEs understand the
participate.
support to effectively procedures related ways in which they can
3. Communication contribute to the to the commissioning contribute to design
materials rely on jargon commissioning process. process. SMEs are fully or apply to deliver
and no dedicated Efforts are made to aware of ways to feed public services. Clear
support exists to clarify jargon and in. language is used,
make processes more facilitate SMEs’ input without jargon.
accessible to SMEs. and participation but
SMEs are often unable
to effectively feed in.

specific behaviour:
Council does not SME organisations are Taking a proactive SME engagement SME engagement is a
see any benefits to engaged in a few key approach to integrating is embedded into core operational way
be gained from SME contracts only. SME organisations corporate strategy. of doing business,
engagement. into procurement and integrated into all
commissioning. directorates/departments
and activities with regular
reporting against targets.
Procurement There is little to no 1. There is a 1. There is engagement 1. Processes have been 1. Procurement
understanding of prescriptive procedure with SMEs ahead of adapted to ensure that procedures are flexible
the capacity and for all procurement publishing a notice of SMEs are fully engaged according to the size of
capability of SMEs, exercises and little tender. from the outset. contract and supplier
and processes and awareness of how market. Prescriptive
2. There is an attempt 2. There is proactive measures are only
procedures are not SMEs might engage.
to better understand the engagement with used when necessary
adapted to their according to law or
2. There is engagement capacity and capability SMEs and relevant
capability. This regulations. SMEs are fully
with a limited number of of SMEs and adapt infrastructure bodies
excludes SMEs from able to respond to the
SMEs ahead of notices procurement processes ahead of publishing a
commissioning and process.
of tenders being to reflect this. notice to tender. This
procurement processes. 2. SMEs have had the
published. However, gives SMEs sufficient
3. DPSs used regularly opportunity to contribute
there is little or no time to galvanise
to go to market and to the service specification
understanding of the resources to put
enable SMEs to provide ahead of a notice to
capacity or capability together a bid and
services. tender being published
of SMEs and processes shape the service.
via a variety of
are not adapted to their 4. Lotting used communication channels.
3. There is good
needs. proactively to ensure SMEs have had a
understanding of
contracts are available significant amount of time
3. Dynamic purchasing the capacity and
to SMEs. to galvanise resources
systems (DPS) used capability of SMEs.
to put together a bid
by certain areas of the Where appropriate,
and shape the service.
Council. after evaluating
service specifications 3. Commissioners and
procurers have a strong
and contract sizes,
understanding of the
processes are adapted capacity and capability
to reflect this capability. of SMEs and adapt their
processes, when appropriate
to the service specification
and contract size, to reflect
this capability.

specific behaviour:
departments and
reporting against
targets.
Contract management Contract management Some parts of the Contract management Contract management Contract management
is generally poorly Council manage processes assess how processes encourage processes require
undertaken in the contracts with SMEs but prime contractors have proactive engagement full monitoring of the
council and no this is not consistent. engaged with SMEs in with SMEs in prime performance of prime
consideration of SMEs their supply chains. contractor supply contractors to ensure
Contract management
given. chains. they fairly treat SMEs
only relates to the prime Contracts with SMEs are
in their supply chains
contractor. There is no monitored, and regular Regular meetings occur
(eg through prompt
particular expectation feedback provided. with SMEs that have
payments, not passing
on how subcontracting council contracts where
Prime contractor on risks) and obtain
relationships with they are provided with
payments terms in SME organisations’
smaller SMEs should be feedback to enable
supply chains are views when evaluating
conducted. them to improve and
monitored to ensure prime providers’
apply for other work.
compliance. contract performance.
Whistleblowing
Assistance given
procedures in place to
to SMEs in supply
enable SMEs in supply
chains to improve their
chains to highlight poor
performance and apply
treatment by prime
for other work.
contractors.
SMEs that have council
Full monitoring of prime
contracts are given
contractor supply
proactive assistance
chains.
with issues that they
may have and to enable
them to grow.

specific behaviour:
departments and
reporting against
targets.
Governance, No reporting on SME Some analysis of SME SME spend is captured Targets are set for Use of SMEs is
accountability and engagement takes spend is captured and analysed to expenditure on SMEs fully monitored and
reporting place. but no actions are determine how and these are monitored measured with an
taken based on the engagement might be and reported on at analysis by SME type
information gathered. improved. A principal Officer level boards. and expenditure by
officer has been given ward.
Performance on
responsibility for
engagement with A portfolio holder has
improving engagement.
SMEs by the council been appointed to lead
is reported to scrutiny on SME engagement
committee on a regular and meets with
basis. representatives on a
regular basis.
Prime contractors
required to provide data
on payment times to
SMEs in supply chains
and this information is
reported to members.
A balanced scorecard
is used to assess the
council’s use of SMEs
and treatment in supply
chains.

Key area: Enabling voluntary, community and social enterprise (VCSE) engagement
Description: VCSE refers to organisations that include small local community and voluntary groups, registered charities both large and small,
foundations, trusts and a growing number of social enterprises and cooperatives. These are often also referred to as third sector
organisations or civil society organisations.
Help: What it is: The VCSE sector is diverse in size, scope, staffing and funding of organisations. It provides a broad range of services to many
different client groups. However, VCSE sector organisations share common characteristics in the social, environmental or cultural objectives
they pursue, their independence from government, and the reinvestment of surpluses for those objectives.
Why it is important: VCSE organisations can play a critical and integral role in health and social care including as providers of services;
advocates; and representing the voice of service users, patients and carers.
High level Minimum Developing Mature Leader Innovator
principle/
Organisation does not VCSE organisations Taking a proactive VCSE engagement is embedded into VCSE engagement
specific
see any benefits to are engaged in a few approach to integrating corporate strategy. is a core
behaviour:
be gained from VCSE key contracts only. VCSE organisations operational way of
engagement. into commissioning and doing business,
procurement processes. integrated into
all directorates/
departments and
activities with
regular reporting
against targets.

principle/
specific
behaviour:
all directorates/
departments and
activities with
regular reporting
against targets.
Policy and The organisation has 1. There is 1. Commissioners/ 1. Commissioners/procurers have 1. Commissioners/
scope no policy in place for no ongoing procurers have started to informed the market what the local procurers have
VCSE engagement communication with communicate to the market need is and the desired market clearly set out how
and does not see any the market regarding what the local need is, outcomes. Small VCSEs can the market should
benefit from doing so. the local need, long- and the desired market make efforts to collaborate with deliver, and to
term strategies and outcomes. However, small organisations to respond to local what standards.
desired outcomes. VCSEs remain unaware of need. Small VCSEs can
Small VCSEs are their place in the market. collaborate with
2. There is a good balance between
unaware of their role other organisations
2. Short-term needs are addressing short-term needs and
in responding to such to effectively
a priority but there is working with small VCSEs to establish
needs. respond to local
some effort to bring in the the long-term priorities and needs of
needs, and meet
2. Services are community via small VCSEs the community.
desired outcomes.
commissioned to to consider long-term and
address current preventative needs. 2. Services
needs and have incorporate VCSE
little or no focus expertise on
on prevention and prevention and
long-term needs long-term needs
of the community. while also providing
VCSEs are not invited relevant crisis
to inform service services.
provision.

principle/
specific
behaviour:
all directorates/
departments and
activities with
regular reporting
against targets.
Facilitating The organisation does Relationships There is some There is responsive willingness to Commissioners/
good not see any benefit between small VCSEs acknowledgment for facilitate relationships between small procurers
relationships from engaging with and other providers the convening role that VCSEs and certain larger providers. proactively
with VCSEs VCSE organisations. are not facilitated. commissioners/procurers Some of the benefits of this are facilitate,
It is not considered can have and what the being realised. As a result of this, and nurture,
to be an area benefit of facilitated Small VCSEs have formed some relationships
where intervention relationships between partnerships with larger providers via between small
is needed or small VCSEs and other VCSE umbrella organisations where VCSEs and a broad
appropriate. providers could bring. they exist. range of providers
They have started to make via local umbrella
As a result of this,
some efforts to bring these organisations
there is an absence
parties together. VCSE where they exist. In
of consortia and
‘umbrella’ organisations turn, small VCSEs
networking in their
are used as a go-between created their own
locality.
where they exist. networks, and
consortia with other
providers.

principle/
specific
behaviour:
all directorates/
departments and
activities with
regular reporting
against targets.
Measurement No measurement of There is no or Commissioners have Commissioners/procurers often ask Commissioners/
VCSE usage or impact little time given recognised the value in small VCSEs to aid them in the user procurers work
not seen as important. to the strategic employing small VCSEs feedback process, recognising their closely with small
evaluation and to reach users, where expertise in this area. VCSEs to seek
impact measurement they could seek insightful extensive user
of services. The service feedback, but have feedback in order
perspective of small yet to engage them in the to review the
VCSEs and users is process. effectiveness of
not sought. their service in
meeting local need.

principle/ Organisation does not VCSE organisations Taking a proactive VCSE engagement is embedded into VCSE engagement
specific see any benefits to are engaged in a few approach to integrating corporate strategy. is a core operational
behaviour: be gained from VCSE key contracts only. VCSE organisations way of doing
engagement. into commissioning and business, integrated
into all directorates/
procurement processes.
departments and
reporting against
targets.
Commissioning There is no knowledge 1. There is no or 1. There is some 1. There is strong knowledge of the 1. VCSE’s ability
of VCSE organisations little knowledge of knowledge of how VCSEs’ value small VCSEs bring in providing to provide niche,
in the local area, nor the local expertise local expertise and niche, localised services; they often localised services
that small VCSEs draw upon their broad community is being celebrated
their capabilities. community outreach can outreach and actively integrate them into
can bring to public add value and attempts and drawn upon
services and their their service provision. routinely. Their
are made to integrate 2. A variety of relevant small VCSEs are
ability to reach more broad community
marginalised parts them into the wider proactively invited to contribute to co- outreach is actively
service provision. design in the commissioning process.
of the community. There are designated voluntary sector integrated into
Small VCSEs are 2. A limited number of engagement events and specified service provision.
not integrated into ‘usual suspects’ small communication channels. 2. Small VCSEs
the wider service VCSEs are invited 3. Efforts are made to establish have regular
provision. continuous partnership working with
to contribute to the and significant
2. There is no, or commissioning process. VCSE organisations. opportunities to
minimal, VCSE There are some general feed into public
engagement engagement events and service design
throughout the communication channels through a host of
commissioning designated market
that they can feed into
process. There engagement events
but response is low/
are no established and communication
communication knowledge of them is channels.
channels or limited.
3. Relationships
designated 3. There is interest in with VCSE
engagement events VCSE partnership working organisations are
for small VCSEs.
but no lasting relationship strong and optimal
3. There is no has been established. for partnership
partnership working or working.
ongoing relationships.

departments and
reporting against
targets.
Market No engagement takes 1. There is little 1. Small VCSEs are seen 1. Good understanding of the local 1. There is strong
engagement place between the knowledge of as part of a diverse supply small VCSE landscape and their understanding of
and council and VCSE the small VCSE chain but they are not value exists. the local voluntary
partnerships organisations. landscape and the seen as a provider with a sector and the
value they could 2. There is a lead commissioning social and financial
particularly unique value.
bring to public contact who takes some responsibility value they bring.
services. 2. Efforts are made to for facilitating small VCSEs’ input into
establish a lead contact the commissioning process. 2. There is a
2. There is no for small VCSEs with the designated contact
particular point 3. A conscious effort is made to who proactively
view to upskilling VCSEs to
of contact for clarify language and procedures facilitates small
participate in procurement.
small VCSEs. They related to the commissioning VCSEs’ input into
are assumed to 3. There is some process. Charities are aware of ways the commissioning
understand the awareness of small to feed in. process.
commissioning VCSEs’ need for support
3. A variety of
process and how to to effectively contribute support is available
participate. to the commissioning to help small
3. Communication process. Some efforts VCSEs understand
materials rely on are made to clarify jargon the ways in which
jargon and no and facilitate charities’ they can contribute
dedicated support input and participation but to design or apply
exists to make charities are often unable to to deliver public
processes more effectively feed in. services. Clear
accessible to small language is used,
VCSEs. without jargon.

procurement processes. into all directorates/
departments and
reporting against
targets.
Procurement VCSE organisations 1. There is a 1. There is some 1. The Light Touch Regime and the 1. Procurement
are not taken into prescriptive consideration of whether use of DPSs are taken advantage procedures are
account at any time procedure for a prescriptive procedure of in the majority of cases. There flexible according to
in procurement all procurement is needed for procurement are attempts to adapt processes to the size of contract
processes. exercises and little exercises, the light touch ensure that small VCSEs are fully and supplier
use of Dynamic regime and DPSs are used engaged. market. Prescriptive
Purchasing Systems wherever appropriate. measures are
2. There is proactive engagement
(DPS) or flexibilities only used when
2. There is some prior with small VCSEs and relevant
possible under the necessary
engagement with a limited infrastructure bodies ahead of
‘light touch’ regime. according to law or
amount of small VCSEs publishing a notice to tender. This
regulations. Small
2. There is little to no ahead of publishing a gives small VCSEs sufficient time to
VCSEs are fully able
prior engagement notice of tender. However, galvanise resources to put together a
to respond to the
specifically aimed at small VCSEs often remain bid and shape the service.
process.
small VCSEs ahead unable respond in time.
3. There is some understanding
of notices of tenders
3. There is an attempt of the capacity and capability of
being published. This
to better understand the small VCSEs. In certain cases, after
is a major barrier in
capacity and capability of evaluating service specifications
their ability to create
small VCSEs, and adapt and contract sizes, processes are
a bid in time.
procurement processes to adapted to reflect this capability.
reflect this. However, this
has not yet enabled small
VCSEs to better participate
in the commissioning
process.

departments and
reporting against
targets.
Procurement 3. There is little to 2. Small VCSEs have
(continued) no understanding had the opportunity
of the capacity to contribute
and capability of to the service
specification ahead
small VCSEs and of a notice to tender
processes are not being published
adapted to their via a variety of
capability. This communication
excludes small channels. Small
VCSEs from the VCSEs have had a
commissioning significant amount
of time to galvanise
process. resources to put
together a bid and
shape the service.
3. Commissioners/
procurers
have a strong
understanding of
the capacity and
capability of small
VCSEs and adapt
their processes,
when appropriate,
to the service
specification and
contract size, to
reflect this capability.

departments and
reporting against
targets.
Contract Contract management Some contract Contract management Prime contractor relationships with Contract
management not required. management structures are beginning VCSE organisations in their supply management
but this is not to consider how prime chain are taken into consideration structures fully
consistent across the contractors should engage when evaluating the large providers’ monitor the
organisation. and manage their sub contract performance. performance of
contracts with smaller prime contractors
Whistleblowing procedures in place
VCSEs yet to be set. to ensure they fairly
to enable VCSEs in supply chains
Contract treat VCSEs in their
to highlight poor treatment by prime
management supply chains (eg
contractors.
structures only through prompt
relate to the prime payments, not
contractor. There is passing on risks)
no expectation on and obtain VCSE
how subcontracting organisations’
relationships with views when
smaller VCSEs should evaluating prime
be conducted. providers’ contract
performance.

departments and
reporting against
targets.
Governance, No reporting on VCSE Some analysis VCSE spend through Targets are set for expenditure on Use of VCSEs is
accountability engagement takes of VCSE spend procurement activity is VCSEs and these are monitored and fully monitored
and reporting place. through procurement captured and analysed reported on at officer level boards. and measured
activity is captured to determine how These include spend on VCSE with an analysis
but no actions are engagement might be organisations by prime contractors. by VCSE type and
taken based on the improved. A principal expenditure by
Performance on engagement with
information gathered. officer has been given ward.
VCSEs by the council is reported
responsibility for improving
to scrutiny committee on a regular A portfolio
engagement.
basis. holder has been
appointed to
A balanced scorecard is used to
lead on VCSE
assess a council’s use of VCSEs and
engagement
treatment in supply chains.
and meets with
representatives on
a regular basis.
Prime contractors
required to provide
data on payment
times to VCSEs in
supply chains and
this information
is reported to
members.

Local Government Association
Local Government House
Smith Square
London SW1P 3HZ
Telephone 020 7664 3000

Fax 020 7664 3030
Email info@local.gov.uk
www.local.gov.uk
© Local Government Association, July 2018
For a copy in Braille, larger print or audio,

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Procurement Toolkit

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National Procurement Strategy

for Local Government

This toolkit has been developed to support delivery of the

Its purpose is to help councils, and groups of councils,

Key area: Engaging councillors

National Procurement Strategy for Local Government in England 2018 3

4 National Procurement Strategy for Local Government in England 2018

National Procurement Strategy for Local Government in England 2018 5

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Key area: Creating commercial opportunities

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High level principle/ Minimum Developing Mature Leader Innovator

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Key area: Obtaining social value

High level principle/ Minimum Developing Mature Leader Innovator

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