Commissioning is the process of working with stakeholders to design a service. Fair Work First requirements should be addressed on a case-by-case basis. The most positive sustainable outcomes, including those relating to Fair Work First, will arise from early consideration of intended outcomes and optimum solutions.
Involving key stakeholders from the outset by establishing a stakeholder group, e.g. a User Intelligence Group or through co-production events, consultations and surveys will help to achieve these. These will enable a diverse group of people to consider the contract or framework requirements from a range of viewpoints, increasing the prospect of high-quality sustainable outcomes.
An equality impact assessment (EQIA) identifies opportunities to promote fair work practices in the contract, or any potential impacts on people with protected characteristics, either positive or negative. Where an EQIA has been done, it should inform the procurement process along with other relevant sources of information. Protected characteristics are defined in The Equality Act 2010 as:
The Life Cycle Impact Map (LCIM) is used to identify and assess the economic, social and environmental impacts within the life cycle of a product or service, and can lead to appropriate market research. LCIM can help a buyer undertake the Sustainability Test.
An example of a LCIM for sectors where there are high levels of workers involved in the delivery of the contract is included in Annex D.
Use of the Sustainability Test can draw out and help the buyer/stakeholders understand the relevant opportunities and risks relating to their procurement and inform where to include Fair Work First in the procurement process. Model Sustainability Tests are available from the sample library in the sustainable procurement tools.
While all the Fair Work First criteria should be considered in each procurement exercise, the Sustainability Test helps buyers determine the most significant and relevant criteria in each case. Examples of where the criteria will be most relevant can be found in Annex B.
Early engagement with the market can help a buyer understand the current and evolving market capacity and capability, and the opportunities and risks for sustainable outcomes before starting a procurement process. Market engagement can also be used to support information sharing, leading to new ideas and innovation.
This may be done by issuing a Request for Information or by organising market events where information can be gathered about the nature of fair work practices that are typical in the sector. It can also help the buyer learn about the potential suppliers and their supply chains. For example, whether the contract will typically be delivered by a supply chain of sub-contractors, self-employed workers, sole traders, small, medium or micro businesses, or whether suppliers from other countries are likely to bid.
The buyer should also be aware of basic information about working conditions in the sector, and down the supply chain. This might include: trends around payment of the real Living Wage, along with median wage rates; whether sectoral agreements are in place; the prevalence of zero hours contracts; access to flexible working; and pay and employment gaps for groups with protected characteristics.
When determining how Fair Work First can be applied to those workers involved in delivering a public contract, consideration should be given to the organisation’s context. The approach should be relevant and proportionate and aimed at contributing to achieving Fair Work First. It will include the organisation’s type, its size and sector, whether it is Living Wage accredited, has Trade Union recognition and use of relevant collectively bargained rates, as well as how much progress has already been made in adopting fair work practices.
