Paul Murphy Through the Power of Procurement

1. Paul Murphy Through the Power of Procurement

2. Sustainable Procurement In Manchester The Council spends around �600 million in revenue and around �300 million in capital on procurement This spend impacts on economic, environmental and social issues The spend influences supplier behaviour To ensure these impacts are positive and beneficial to Manchester a Sustainable Procurement Policy is now in place and supported by a Statement of Intent

3. Manchester City Council � Sustainable Procurement Policy Balanced consideration of social, environmental and economic impacts are undertaken throughout the procurement process Aims to ensure that Manchester City Council employees, contractors and suppliers are aware of the Council�s commitment to long-term social, ethical, environmental and economic sustainability

4. Some Key Objectives of the Policy Taking into account the need to minimise emissions Considering the environmental performance of all suppliers and contractors Use of recycled products and products derived from reclaimed materials Use of Fairtrade, or equivalent, and ethically sourced and produced goods and services Working more effectively with diverse suppliers (e.g. sme, 3rd sector) Ensure that local enterprises encouraged to bid Maximising the opportunities for employment and economic gain within Manchester�s communities

5. Sustainability Procurement Processes Regional procurement portal for tenders � Increased visibility of opportunities Sustainability is embedded in our standard procurement processes Addressing the key issues for small companies and voluntary sector Use of economic, environmental and social clauses within procurement - NWIEP guidance produced All tenders are evaluated on a �quality / price� points scoring basis Currently allocating a minimum of 10% of the overall available score to sustainability Clear communication in documents of what is important to Manchester

6. Understanding the Impact Key to inform action plan in relation to the policy Systems telling us that around 60% of spend with companies based in Manchester Research conducted with our top 300 suppliers with whom we spent �357million 2008/9 What impact they have on local economy What commitment they have to environmental sustainability Fit with Sustainable Procurement Policy

7. Understanding the Impact �184million or 51.5% of spending is with organisations with a MCC boundary postcode or with a branch within the local authority boundary �309million or 86.5% is spent with suppliers based in Greater Manchester �85million of this �184million was spent with construction organisations �29million spent with Manchester based 3rd sector organisations �17.5million was spent with Manchester based SME�s �87.5million is spent with suppliers which are based or have a branch within the 10% most deprived areas in England

8. Understanding the Impact An estimated 5,225 Manchester residents are directly employed due to the council�s spend on their top 300 suppliers and contractors For every �1 spent by MCC with top 300, suppliers re-spend 25p on employees and their own suppliers The net impact of procurement spending upon the Manchester economy �273million (our spend on MCC boundary based suppliers plus the supplier�s re-spend on employees and their MCC boundary based suppliers) It was found that in organisations for whom Manchester City Council were their key customer, their recruitment was very much driven by the ethos of the Council

9. How Procurement Can Support This Agenda Raise supplier awareness of the Council�s priorities To really have an impact need to look beyond first tier suppliers to understand:- Community benefit Local employment Carbon reduction Tackling Worklessness 63 Apprenticeships Training opportunities Work with diverse suppliers Partnership approach with suppliers Work with stakeholders to understand the sustainability impacts of contracts Consistent application of policy throughout procurements