Sustainable Procurement Policy and Strategy - Consultation Questions

This policy aims to build on the successes of our Social Value Procurement Policy. In 2023, we set out our definition of social value, covering social, environmental and economic outcomes. We are now strengthening our approach to sustainability by introducing mandatory sustainability requirements for contracts, alongside a new Supplier Code of Conduct.

We would like to hear your views on these proposals. In particular, we would like your views on our proposed move towards sustainable procurement, including whether the current requirements remain appropriate and your opinions on the new sustainability requirements for tenders valued at more than £1 million.

Read how we will implement our policy here

Approximately 75 per cent of the money we spend is with contracts worth more than £1 million pounds, but is only 15 per cent of all our contracts. Because of this we will maximise the impact of these larger value contracts by:

• Expecting more from suppliers bidding for contracts worth over £1 million, including clear plans on how they will deliver their sustainability commitments and by including mandatory sustainability requirements
• Making the procurement process simpler for local small and medium-sized businesses (SMEs) applying for contracts worth up to £1 million
• Using the policy to help these smaller suppliers grow, so they can compete for higher-value contracts in the future, both with the council and other organisations

In 2023, we introduced a number of requirements designed to help ensure that the money we spend delivers wider benefits for people, communities and the economy. These included commitments relating to:

• Tackling modern slavery
• Paying suppliers promptly
• Supporting payment of the Real Living Wage
• Avoiding the use of zero-hours contracts

As we develop our approach to sustainable procurement, we want to build on these foundations and increase the positive impact our purchasing can have. Alongside the existing requirements, we are proposing nine new sustainability measures. Two would apply across all tenders, while a further seven would apply to contracts valued at more than £1 million, where there is greater opportunity to deliver long-term environmental, social and economic benefits.

We have reviewed how we use reserved contracts and are considering expanding this approach, where permitted by procurement rules, to create more opportunities for Belfast-based and Northern Ireland-based businesses.

Where appropriate, reserved contracts could be used to support:

• Social enterprises
• Belfast-based businesses (for lower-value contracts, in line with procurement rules)
• Northern Ireland-based businesses (for lower-value contracts, in line with procurement rules)

This would help us maximise the positive impact of council spending by supporting local businesses, strengthening the local economy, creating local opportunities, and reducing carbon emissions associated with longer supply chains.

To ensure this approach is used fairly and effectively, we will introduce monitoring and reporting arrangements so that decisions to reserve contracts are transparent, evidence-based and regularly reviewed.

We want to use the policy to encourage the creation of partnerships between private businesses and social enterprises (called PSPs) to help deliver our sustainability goals. This means a private company working with a registered social enterprise to deliver a sustainable initiative as part of their bid.

To support this, extra points will be awarded to suppliers who include this type of partnership in their supplier offer. This reflects the added benefits these partnerships can bring in helping meet the policy’s aims.

We will also help suppliers build these partnerships by connecting them with social enterprises based in Belfast.

Our existing social value procurement policy includes social value scoring and weighting criteria and applies to contracts worth over £30,000. 

Building on the learning to date, we have adjusted this approach and are now proposing the following sustainable weighting criteria.    

All tenders will include a minimum 10 per cent weighting for sustainable criteria as follows:

• Tenders worth up to £1 million will have a minimum 10 per cent weighting
• Tenders worth over £1 million will have a minimum 15 per cent weighting

For each tender, a sustainability score will be set. This will be based on 1 point for every £10,000 of the contract value, with a minimum of 10 points for all tenders.

An example of how this will work is below:

• Tender value up to £100,000 will have 10 points target
• Tender value of £1 million will have 100 points target
• Tender value of £5 million will have 500 points target

The sustainability weighting criteria and points target will be reviewed to check that they are proportionate to what we are buying, what suppliers are able to deliver and to meet the aims of the policy.

Our current Social Value Procurement Policy has a list of initiatives that suppliers can choose to deliver as part of their bid, known as their social value offer.

We have reviewed the current initiatives and added some new sustainability initiatives (opens in new tab) that link to our policies and goals. Each initiative has been designed in a way which reflects both the level of effort and cost for suppliers, and how important the initiative is in helping achieve the policy’s aims.