Sustainable Procurement Tools

Annex A – Example requirements and KPIs

The examples within the Annex should be read in conjunction with the Commissioning and Pre-procurement and Procurement sections. If using one of these examples, it should be amended accordingly to reflect the local circumstances with respect to the individual procurement, the organisational strategies or plans or specific organisational objectives.

Pre-contract Notification

‘Community benefits are included in this requirement. A summary of the expected community benefits has been provided as follows: [work with local authorities to ensure youth (employment) opportunities is a fundamental community benefit].’ 

‘Under this [project/contract/programme] the contractor and its supply chain will be required to actively participate in the achievement of social objectives relating to participation in the, skills development, employment and training programmes in accordance with the [client]'s Employment and Skills Strategy, which can be found at [insert web address] and other added value contributions by the contractor and its supply chain in order to support community programmes promoted by [client]. Accordingly, the contract performance conditions may relate to secondary considerations.’ 

Supplier selection

While supplier capacity and capability may not always need to be demonstrated in contracts that may generate employment skills and training, in some instances it may be appropriate to check capability around recruitment and training.

'When answering question Relevant Examples 4C.1 of the SPD, the bidder must declare that it has documented arrangements in place for providing its workforce with quality-related training and information appropriate to the type of work for which this organisation is likely to bid. Any supplier which is unable to confirm they have the above arrangements in place would be excluded at the selection stage.’

'In answering question Relevant Examples 4C.1, please [also] describe your experience of incorporating employment, skills and training into previous contracts, including details of any specific steps taken in the design of services to increase employment and training opportunities.' 

Specification

Contract example 1

'Relevant to its core purpose of [core purpose], [contracting authority] is seeking to maximise social considerations that can be delivered through performance of the contract. This contract for [goods/services/works] includes the following KPI's/requirements on the contractor:

  • [develop a programme to work closely with community organisations in performance of the services to maximise value to the end-user of the services]
  • [develop a programme to work closely with educational establishments to maximise educational opportunities that arise through performance of the contract] 

Deliver [numbers of these roles should reflect the capacity of the contract]

  • work placement (14-16 years)
  • work placement (16-19 years)
  • curriculum support activities
  • graduate trainees
  • apprentice starts
  • existing apprentices
  • apprentice completions
  • jobs advertised through local employment vehicles
  • SVQ starts for subcontractors
  • SVQ completions for subcontractors
  • training plans for subcontractors
  • supervisor training for subcontractors
  • leadership and management training for subcontractors
  • advanced health and safety training for subcontractors’ 

The Contractor will be required to report to the Authority as part of their [Interval – monthly/quarterly/other] Management Information reporting, details of any community benefit measures and achievements.’

Contract example 2

‘The [contracting authority] aims to maximise sustainable jobs and training gains arising from its works programmes and to assist contractors and specialists or sub-contractors to consider how they alleviate skills gaps. 

The [contracting authority] is committed to ensuring that for this contract, a minimum of xx% of the total labour required to deliver the project (including those works delivered by specialists, or sub-contractors) must be delivered by New Entrants (defined …) that have an apprenticeship, trainee or employment contract with the successful Contractor, their specialists or sub-contractors, and are engaged in a training programme that is accepted by the [contracting authority], (an SVQ, or equivalent but other qualifications and training will be considered such as Health & Safety training). 

The contract contains performance measures in respect of this commitment. In addition, the [contracting authority] expects the Contractor to provide training and upskilling opportunities for existing employees.’

Contract example 3

‘The Contractor is required to secure the creation of employment and training opportunities in connection with the contract. The specific targets for these opportunities are to be specified within the Contractor’s Employment Skills Plan (ESP), this will be developed during the Mobilisation Phase

The Contractor should seek to secure such opportunities through targeted recruitment and training from priority groups of the long term unemployed, other priority groups such as women, ethnic minorities and disabled people and those further from the job market. The Contractor should demonstrate a robust methodology for engaging and recruiting from these groups.

In addition to achieving the training, the Contractor must nominate a Client Coordinator who will be responsible for reporting progress against the ESP to the Purchaser during the Service Period.’

Contract example 4

‘Supporting methodologies are required for each Theme of the Community Benefits Menu to detail how bidders plan to deliver the community benefits offered.

Bidders are required to provide the following information within each methodology:

  • Name, job title and contact details of the person(s) involved in delivering Community Benefits outcomes
  • Details of how the outcomes offered will be delivered and the roles and responsibilities of the individual(s) involved
  • The anticipated timeline for delivery of each outcome

It is recommended that the methodology provided for each theme considers the guidance outlined below and includes, but is not limited to details of the following:

  1. Recruitment & Employment (EMP)
  • How opportunities will be identified, publicised and managed
  • The type and duration of recruitment and training opportunities which will be offered
  • Proposed engagement with partners, support organisations and educational establishments to assist delivery
  1. Skills & Training (SKL)
  • Proposals for engagement with schools, colleges and other partner and support organisations
  • Proposals and content for educational engagement events
  • Details of the type and duration of any work experience placements to be offered’
National / Sectoral Framework example 5

‘In establishing this Framework, it is recognised that Framework Public Bodies may place an emphasis on various social considerations, often in the form of pursuing specific National Outcomes... Relevant to the above, it is envisaged that Framework Public Bodies may look to achieve outputs from amongst those that follow below, in performance of a Call-off Contract.

Accordingly, the following are included as KPIs at Framework Level, and it is expected may be developed (including potentially to expand upon) in mini-competitions by Framework Public Bodies.  

Employment and Training
  1. Creation/delivery of employment opportunities for young/unemployed/persons from within disadvantaged groups.
  2. Creation/delivery of training/upskilling outcomes.’ 
Additional example requirements

'The [Contract/Framework Agreement] supports Scotland's National Performance Framework, and the National Outcomes which articulate the Scottish Government's Purpose to focus on creating a more successful country with opportunities for all of Scotland to flourish through increased wellbeing, and sustainable and inclusive economic growth. This Framework supports the following National Outcomes, and Contractors are expected to support the [contracting authority]'s aim to achieve these.' [Insert relevant National Outcomes]. 

‘The Contractor will be expected to provide CVs for all staff involved in the delivery of the contract and provide an overview of planned continuous professional development activity for staff relevant to the [goods/services/works] delivery over the duration of the contract. ‘

‘The Contractor will be required to commit to a minimum number of modern apprenticeships during the delivery of the contract.’

‘The Contractor will be required to commit to a minimum number of work experience placements during the delivery of the contract.’

‘Every vacancy on site, including those with sub-contractors, is to be notified to agencies named by the [contracting authority], and candidates identified by these agencies are to have an equal opportunity in the selection process.’ 

‘The contractor will be required to utilise employment practices that include opportunity for local labour and trainees during the delivery of the contract.’

‘As part of this contract the contractor will be required to participate actively in the economic and social regeneration of the place of delivery for the contract. Contract performance conditions may therefore relate to social and economic considerations.’ 

‘As part of this contract the contractor will be required to create XX number of opportunities for young people. The opportunities must either be employment, apprenticeship or volunteering opportunities.’

Evaluation and award

'What arrangements will you make to provide mentoring and support for trainees and work placements to ensure maximum retention and achievement of industry accreditations?'

‘The organisation specifically wishes to support the development of skills in [specify industry, for example the building and construction industries and any associated trades]. Please describe your social responsibility initiatives, particularly regarding how you will contribute to this aim including developing trade skills within your existing workforce.’

‘Please explain what action you will take to create and promote training and employment opportunities for young people in the delivery of this contract. This should include how you will ensure that opportunities are inclusive, particularly for disadvantaged or underrepresented groups, including young disabled people and those from rural or low-income backgrounds.’

‘Please describe how you will deliver skills and training opportunities during the lifetime of the contract including relevant policies and strategies. This should detail what evidence will be provided to demonstrate how commitments will be applied in a relevant way to the contract. This may include for example:

  • who in the organisation will be responsible for managing the training scheme and overseeing the proposals
  • which education and training providers will be involved with delivery of the project
  • What partners will the contractor work with to fulfil their proposals, for example the Department for Work and Pensions, Skills Development Scotland, Developing the Young Workforce, Employability in ScotlandNo One Left Behind, local employability partnerships, colleges, local third sector organisations, etc. For example, Edinburgh has a Local Employability website that Home - Edinburgh Local Employability Partnership Edinburgh Local Employability PartnershipDirectory | JUFJ - Joined Up for Jobs and a complementary resource for Business Joined Up for Business
  • what types of accredited and non-accredited training are expected to be offered and who are expected to be the main beneficiaries of this training
  • what types of apprenticeship i.e. trades, or occupational areas are expected to be offered?
  • how will the Target Outputs as set out in the specification be delivered?
  • what actions will be taken to guarantee the creation and uptake of opportunities for and by people from priority groups, and what are the expected overall outcomes for these groups?

Answers need not be constrained to or be reflective of any examples given alongside this question.’

Contract and Supplier Management

Based on evaluation of community benefits in procurement, a range of contract and supplier measures are proposed to demonstrate the impact of including them in contracts and frameworks:

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/ and occupations filled by priority groups 
  • total number of apprenticeships recruited to deliver contract
  • number of/occupations apprenticeships filled by priority groups
  • number of/occupations work placements for school pupils, college and university students
  • number of work placements/occupations for priority groups
  • number of qualifications achieved through training by priority groups number of qualifications achieved through training by other employees 
  • community engagement activities
  • total number of individuals trained, the types of training provided (topic, accredited and non-accredited), total number of individuals trained from priority groups, school pupils, college and university students

 

Return to Contract and Supplier Management

Continue to Annex B – Case studies