Oxfordshire County Council: New rules set to "shape the behaviour" of service providers

The authority’s new social value policy, developed in line with national laws, will see any deals worth £100,000 or more – around five in eight of all external contracts – subjected to extra considerations in line with the priorities of the council.

They include commitments providers may make towards taking climate action, contributing to a “vibrant, safer and more connected” Oxfordshire, supporting a green economy and “promoting diverse local skills and employment”.

Individual social value measures can be prioritised to encourage bidders to offer additional benefits where the priority is highest, enabling providers to tailor their offer to achieve a higher score.

A council report states that “reflecting the significant carbon emissions resulting from the council’s supply chain and the high priority of taking climate action recognised by OCC, all climate-related measures will receive a maximum prioritisation” of three times the priority with “additional selected social, economic and environmental measures” to receive two or three times the priority within the social value policy element.

Subject to the value of the contract, these new considerations will make up between one eighth and one sixth of the overall consideration when picking a provider – the minimum is one tenth – with an equal amount taken from the proportion of weight currently given to price and quality considerations.

The social value policy will have no bearing on contracts valued at less than £100,000.

Councillor Calum Miller (Lib Dem, Otmoor), the county’s cabinet member for finance, said: “I know from conversations with cabinet members and members of the council that there is real enthusiasm for this approach.

“As a public authority with a broad set of responsibilities and a significant budget for services, we can use public funds to shape the behaviour and practise of our suppliers for the common good.

“This offers a double benefit. Our service contracts will contribute to our wider social, economic and environmental objectives and by encouraging our suppliers to adopt social value creating approaches, these will be reflected in their work for other customers.

“I know from the conversations I have had that there is strong interest in going further and faster and I recognise the importance of bringing our suppliers with us because we need to change their behaviour.

“I see this as a starting point to provide the framework going forward. I propose that we take an evidence-led approach in the future and commit to regular reviews, the first point being within the first six months.”

The new policies are expected to apply from April 2022.