This challenge is currently closed but if you would like to discuss a potential solution, we are still open to conversations.
Support is fully funded by the UK Government through the UK Shared Prosperity Fund.
Tees Valley Innovation Challenge is delivered by Edge Innovation Ltd and Health Innovation North East and North Cumbria on behalf of the Tees Valley Mayor and Combined Authority, and the Tees Valley Business Board and you can view the video here.
About the Challenge holder
The Tees Valley Combined Authority (TVCA) is committed to fostering economic growth and promoting equity within the region. Central to this mission is the empowerment of small and medium enterprises (SMEs), which are uniquely positioned to drive targeted social value initiatives due to their deep-rooted connections with local communities. These enterprises have the potential not only to create jobs but also to address pressing social issues, making them key players in the region's development.
Social value is crucial for communities as it goes beyond financial gains, focusing on the social, economic, and environmental benefits that enrich people's lives. It fosters stronger, more resilient communities by addressing local needs, such as creating jobs, improving services, and enhancing well-being. By prioritising social value, communities can ensure that public and private investments lead to tangible, positive outcomes that support long-term growth, equity, and sustainability, making the area a better place to live for everyone.
TVCA have established a clear emphasis of social value within procurement which now represents 20% of the total scoring. The growing consideration for social value has, in some circumstances, produced the opposite of the intended outcome, creating additional barriers for regional SMEs in engaging with and securing tenders. With their desire to reshape the way social value is developed and implemented for community benefit, TVCA wants to raise SMEs’ competitivity in procurement and develop assets to support their submissions.
About the challenge:
TVCA is working to award more government contracts to local SMEs in order to stimulate economic growth in the region. However, SMEs often struggle to meet the specific social value requirements tied to these contracts, which puts them at a disadvantage compared to larger competitors. This challenge is becoming more urgent with the new Procurement Act taking effect in October 2024, which will enforce stricter social value criteria and demand greater transparency and accountability.
To address this, TVCA is striving to improve its procurement process by fostering better collaboration between its project and procurement teams. TVCA have a set of agreed measures selected from the National social value TOMS (Themes, Outcomes and Measures) system. The social value calculator forms part of the tender pack. Due to lack of social value knowledge across the Authority, it is often left to the procurement team to evaluate the social value element of the tender. Project teams and leads manage their own contracts.
Several initiatives are underway to enhance the quality of social value delivery in the Tees Valley, including a digital dashboard for tracking and reporting activities, a matching service that connects Voluntary Community and Social Enterprises (VCSEs) with business resources and a community impact fund. It's crucial that any new solutions align with these existing tools rather than compete with them.
Small and medium sized enterprises
Knowledge and understanding: There is a lack of training and resources available to educate SMEs on social value. This results in a significant lack of understanding of social value, the procurement process and how to supply effective, high-quality social value.
Unfocussed impact: SMEs are losing out on contract opportunities. They often refer to being guided by TVCA in their social value responses to deliver their commitments or replicating the same measures from previously awarded contracts.
Networks: There is a perceived lack of visibility and connection between SMEs, VCSEs and communities which limits the range of social value initiatives within procurement.
Missed opportunities: Due to a lack of social value understanding, SMEs lose out on tender opportunities resulting in the same organisations being awarded contracts, limiting the diversity of suppliers and impact generated for local communities.
Perception: The perceived complexity of social value implementation in tender submissions creates barriers for SMEs, leading them to disregard tender opportunities and reduces the diversity of supplier available to fulfil contracts’ needs.
Small and medium sized enterprises
Knowledge and understanding: Improved resources to support SMEs with the development and implementation of social value. SMEs understand the range of social value initiatives they can offer as part of their tenders.
Targeted impact: Each contract awarded by the local authority is now delivering specific and targeted social value, supporting the needs of local communities and feeding into TVCA’s wider frameworks.
Networks: There are improved relationships between SMEs, VCSEs and communities which increases the quality and impact of social value within tenders.
Increased opportunities: SMEs are able to understand social value requirements and embed it within their submissions regardless of internal capacity, improving their chances of success and increasing the impact generated for local communities.
Perception: improved understanding of social value boosts the confidence of SMEs competing for tenders, as they see these contracts as opportunities for growth that directly enhance the diversity of TVCA's supply chain.
Tees Valley Combined Authority
Submissions lack impact: Poorly constructed social value propositions result in proposals being discarded based on TVCA’s set ambitions and guidelines, creating a lack of diversity in suppliers resulting in gaps across community needs.
Challenges in generating impact: With current redevelopment and implementation of social value frameworks, TVCA is struggling to improve and grow their reach for local community impact as submission for tenders do not meet criteria.
Tees Valley Combined Authority
Submissions match community needs: Improved understanding of social value increases the quality of SMEs’ submissions. Outcomes including economic, social and environmental impact which can be traced and linked to contracts resulting in reduced deprivation and inequality.
Meeting social value requirements: TVCA can trace the impact and value generated for communities for each awarded contract. This directly impacts the support provided to communities who feel more included.
Voluntary, Community, and Social Enterprise (VCSE) sector
Relationship between VCSEs and SMEs: There is a perceived disconnect between SMEs and VCSEs that leads to the poor design of programmes which results in low impact outcomes. SMEs tend to be unaware of existing needs within the VCSE sector which limits the opportunities to deliver community impact.
Impact of social value: Current social value programmes can unintentionally harm the work delivered by VCSEs as they are generic and are not based on local community’s needs. They focus on quick wins that do not generate lasting value and often replicate what already exists.
Distribution of social impact: The lack of knowledge and understanding behind social value within public procurement frameworks limits the benefits to local organisations that actively deliver necessary impact leading to an unfair distribution of social impact across the Tees Valley.
Voluntary, Community, and Social Enterprise (VCSE) sector
Relationship between VCSEs and SMEs: SMEs and VCSEs are working closely in developing programmes that benefit local communities, thus improving social value across the Tees Valley area. The support is targeted and purposefully curated to grow impact.
Impact of Social Value: Programmes are co-developed with SMEs and focus on VCSEs and local community's priorities. Emphasis is put on lasting impact and outcomes rather than monetary value. Businesses are involved with design and planning of social value programmes reducing pressure on VCSEs.
Distribution of social impact: VCSEs are able to easily navigate the social value framework to partner with SMEs to codevelop impactful social programmes across the region. This leads to greater outcomes and knock-on impact within communities across the area.
Communities
Generic social value: The current approach followed by SMEs creates outcomes that are uncoordinated, repetitive and do not meet the needs of communities which ultimately wastes resources on programmes that are less relevant.
Communities
Targeted Social Value: Communities are connected with suppliers, allowing programmes to better address local needs and make support more accessible. Purposeful investment provides communities with the resources and motivation needed to become more self-sufficient.
Large Organisations
Lack of local knowledge: These organisations tend to have a generic approach to social value within tenders that does not fit with community and local authority needs. They can lack local presence and networks, leading to delivery of social value as a box-ticking exercise.
Perception of social value: Businesses perceive social value requirements as a ‘necessary evil’ for procurement, focusing more on the potential publicity benefits generated by a wider approach as more targeted work would require more effort.
Large Organisations
Deeper roots in local communities: Large companies are able to deliver impactful social value through a network of smaller entities based in specific locations reinforcing the support delivered through engaging and lasting partnerships.
Perception of social value: Better quality social value programmes are easier to evidence, making reporting easier and improving reputation. Better reports have the potential to increase the number of contracts awarded to organisations.
Before Tender: The tender proposal is developed by internal procurement teams in consultation with service suppliers. Information sessions are held with local supply chains to grow social value understanding, clarify requirements and signpost.
During Tender: When tenders are published, specific documentation is shared to support submissions including a clarification period for further questions. This includes key metrics and targets for social value delivery.
After Tender: Social value is assessed for each submission by procurement teams and the successful applicant is awarded based on set targets. Social value is monitored throughout contract and requires evidencing to support the reporting to funders.
Before Tender: Improved engagement with suppliers prior to tenders leads to clear understanding of requirements. Project teams behind tenders are involved in the procurement process supporting with key information about the social value needs for each contract.
During Tender: Guidance and support are efficiently delivered to SMEs, ultimately increasing the number of successful submissions.
Project and procurement teams collaborate on the refinement of the desired social impact, with project teams also participating in the clarification process.
After Tender: Clear communication of social value expectations leads to higher-quality submissions and more meaningful reports. Suppliers provide regular updates on delivery. Project and procurement teams jointly assess submissions, monitor contract delivery and address any shortfalls. Feedback to suppliers is constructive and easy to understand.
Efficiency of communication: Currently, processes are led manually which is time and resource intensive and engagement with internal and external stakeholders can be limited.
Performance of social value: Misunderstandings and poor contract management and delivery can lead to poor results and suppliers failing to meet agreed requirements.
Reporting on social value: Suppliers struggle to provide evidence, making it difficult for TVCA to report on outcomes for individual contracts. This can harm perception of TVCA's commitment to social value and increases the risks of awarding contracts that will ultimately not deliver on social value.
Efficiency of communication: The procurement team spends less time sharing information, communication is streamlined, clear and effective. Internal teams can redirect resources towards other priorities.
Performance of social value: Contract requirements and measurement are clear and ensures consistent delivery of promised social value, making it integral to contract compliance and outcomes.
Reporting on Social Value: Enhanced contract management and monitoring improves evidence gathering, enabling clear reporting and the sharing of success stories that benefit both TVCA and suppliers.
To access this support, you must be a small or medium-sized business based in Tees Valley (Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland, or Stockton-On-Tees).
Support is fully funded by the UK Government through the UK Shared Prosperity Fund.
Tees Valley Innovation Challenge is delivered by Edge Innovation Ltd and Health Innovation North East and North Cumbria on behalf of the Tees Valley Mayor and Combined Authority, and the Tees Valley Business Board.
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