The ultimate goal for the public sector is to maximise the social impact of all activities. To ensure that every contract awarded – whether it’s for goods, services, or utilities – ends up changing local lives and communities for the better. And it’s a mission we won’t be able to achieve without the support and inclusion of the nation’s VCSEs and SMEs.
SMEs account for 99.2% of the UK’s total business population and around half of the private sector’s turnover. Working with SMEs brings the public sector better value for money and provides a critical boost to our economy. Meanwhile, VCSEs are socially valuable at their core. They often have deep roots to local communities, access to wider networks and partnerships, and maximise the social impact of projects simply by doing business as usual.
With both SMEs and VCSEs bringing so much to the table, how can your council lift them up even more to compete (and win) your public contracts?
Level the playing field of procurement
One of the largest barriers to entry for SMEs and VCSEs is the procurement process itself. Tendering for projects is time-consuming and resource-heavy enough. Not to mention when you throw social value requirements on top.
Many SMEs and VCSEs won’t always have the time, resources, specialist bid teams, or social value experience needed to compete with nationwide suppliers. And they can end up missing out on contracts as a result. Which is where you can make the process as simple and straightforward as possible.
Don’t make it complex, long, and alienating for smaller or non-profit suppliers. Look for any way you can to streamline it and counter common challenges they might face.
This could include opting for simpler social value software. Tools that can just as easily be used by a local two-person business as a national one with a designated social value department. It might also mean allowing longer for suppliers to prepare their bids. You could even make yourself available for pre-tender meetings with smaller organisations who might need extra support. Helping them to understand your social value goals, priorities, and what you’re expecting from bid responses.
Something you can do right now (if you haven’t already) is publish your social value statement on your website. This way, you can manage expectations and give SMEs and VCSEs plenty of time to familiarise themselves with your chosen themes and outcomes.
Work with organisations to strengthen their reporting
The introduction of PPN 06/20 was supposed to level the playing field of government procurement. But the truth is, all organisations aren’t equal when it comes to social value. A local non-profit in rural Wales is going to have very different experience and resources than a national construction company.
The more you can do to work with local organisations to strengthen their approach to social value, the stronger bids you can expect. And the more variety you’ll have to choose from when it comes to competitive contracts.
VCSEs are likely to need support improving their reporting capabilities. They will be generating a lot of social value through their day-to-day activities. Not to mention anything specific they can commit to for the project’s duration. And that’s all valuable social value your projects could benefit from. If only the value was accurately captured.
Try hosting seminars around social value. Invest in tools you can licence out to local companies to help them identify and capture all the good they’re already doing. The strength of local businesses will only reflect positively on your community and council in the long-run.
Provide ongoing support during contract management
The hard work doesn’t end when a contract is won. Visualising and tracking the social value of live projects can be equally as burdensome and off putting for SMEs and VCSEs.
Work to make ongoing contract management as accessible as possible. For all potential suppliers. You can do this by investing in digital tools, providing educational resources, or simply being more hands-on once a contract is awarded.
It’ll also be beneficial to provide regular check-ins and reviews with your suppliers. This way, you close the loop. Smaller organisations can learn and evolve as they go, becoming more informed and equipped with every contract they’re part of. On a similar note, you can get into the habit of sharing good practices across all your projects and suppliers. Let everyone see what great work looks like and inspire smaller organisations to take part.
We can all recognise the value SMEs and VCSEs have to offer public contracts. But there’s still room to create a more inclusive and supportive environment that allows these organisations to thrive. Any small steps you can take to support your local businesses and VCSE sector will only strengthen your supplier pool in the long-term. So why not start now?
Impact is an easy-to-use social value platform that does it all. With decentralised data capture, automated conversions, and ongoing contract management, it’s never been easier to tender for contracts, track your projects, and help local businesses level-up their social value. To find out more, schedule a demo or get in touch with the team on 0161 532 4752.