The Scrutiny Review Panel - STAR procurement and social value met on Wednesday 29 January 2025 to consider a presentation on STAR procurement and social value. The panel was scheduled to comment on the presentation.

STAR Procurement and Social Value

The main item on the agenda was a presentation from the Director of Finance, Jonathan Davies, and Laura Mercer, Stockport Metropolitan Borough Council's (SMBC) Contracts and Commissioning Manager, alongside Lorraine Cox, Director of STAR Procurement, and Michael Crook, Head of STAR Strategic Procurement. This session, the third in a series, was scheduled to cover STAR's performance in 2023-24 and Stockport's performance in the second quarter of 2024-25.

The presentation was also set to detail social value performance for the second quarter of 2024-25, and explore future plans for social value as added value. This included a review of social value systems, contract management, and the potential for a more targeted approach to achieving outcomes. Discussions were anticipated regarding whether social value should be considered solely as 'added value' or if 'inherent' social value could be quantified. The panel was also scheduled to consider if different approaches to applying social value were needed for various contract types, such as social care or local contracts, with the aim of boosting the Voluntary, Community, Faith and Social Enterprise (VCFSE) sector and local suppliers. The presentation was also expected to outline how social value would be more explicitly included in tender documentation, particularly concerning the use of the 'Match My Project' platform.

Further topics scheduled for discussion included STAR's wider added value initiatives. These were planned to focus on establishing a performance baseline to drive improvement, pipeline planning for better forecasting through collaborative opportunities, savings, efficiencies, and contract reviews. An improved contract register and a contract criticality tool to support risk management were also on the agenda. The panel was to consider readiness for the Procurement Act 2023, which was due to go live on 24 February 2025, and the adoption of a Category Management approach, with a specific focus on Small and Medium-sized Enterprises (SMEs). Enhancing supplier relationships, aligning Corporate Procurement Rules (CPRs), and providing support for social value were also listed. Wider efficiencies, including investment in systems and a review of income generation, were also scheduled to be discussed.

The presentation was also set to outline future plans for STAR Procurement, including the launch of a new Business Plan for 2025-2028. This plan was intended to focus on pioneering innovation and new ways of working, leveraging technology, and driving continuous improvement to establish STAR as a market leader. Key workstreams for 2024-25 and 2025-26 were also to be presented, including the launch of the new Business Plan, a Responsible Procurement Strategy, a Performance Management Framework, and a Strategic Delivery Plan. Category Strategies, an Income Strategy, and a Workforce Strategy were also on the agenda. The introduction of a new contract management system and online forms for procurement initiation documents and modification/exemption processes were planned. The launch of a pilot for low-value/local spend called 'Nomia' was also scheduled, alongside a continued focus on supporting the Stockport Value for Money (VFM) Programme, with an emphasis on collaboration and efficiencies. A Communications and Marketing Strategy was also to be presented.

The report pack also included details of supplier engagement activities, such as the STAR Meet the Buyer event held on 3 October 2024, which was attended by 300 delegates and featured exhibits from various organisations. These included the GM Good Employment Charter, Bloom, the Social Value Portal, and Match My Project.

The panel was recommended to comment on the presentation. The previous meeting of the Scrutiny Review Panel on 19 November 2024 had included a presentation on the context and operation of social value in Stockport, with discussions covering the 'Match My Project' initiative, the mitigation of risks associated with social value costs, and the scoring of supplier bids. At that meeting, it was noted that Stockport typically achieved approximately a 38.8 per cent social value return on every pound spent. The previous meeting also touched upon the potential for linking social value with large planning developments and Section 106 agreements, with reference to Salford Council's policy on extracting social value from such orders. The collaboration between Sector Three organisations and those registering with 'Match My Project' was also discussed, as was the need to address imbalances in the procurement process for VCFSE organisations. The funding for 'Match My Project' was reported as £23,000 over three years.