shap erdf clc procuring for value
TRANSCRIPT
Rosemary CoyneSHAP Co-ordinator16 November 2018
2018
SHAP ERDF CLCPROCURING FOR VALUE
SHAPThe Sustainable Housing Action Partnership (SHAP) was established by Sustainability West Midlands in 2005 in order to promote good practice to the housing sector in the West Midlands. SHAP is an independent not for profit think tank and network.
We have members from across the housing sector We now operate nationally but our core membership includes all the WM LAs..
SHAP • brings together good housing
practice• commissions new research • disseminates the findings
SHAP VISION
All dwellings will be:• energy efficient• resilient to extreme weather• affordable, healthy and comfortable to live in
Good homes will:• provide a structure for sustainable communities• be attractive places to live • support jobs and skills within a low carbon economy
IMPROVING OUTCOMES FROM INVESTMENT IN WEST MIDLANDS
HOUSING focussing on PLACE
ASSUMPTIONS• Good housing is the essential foundation of flourishing
communities• High quality housing is part of great placemaking• Access to open space, natural places and green views benefit
health=>• Housing is part of our critical national infrastructure• Green and blue infrastructure are integral parts of great places
SHAP Research 2018
3 research workstreams to support better outcomes from investment in housing –
reduced risk, better value for money
Based on a whole place approach Essential to create ‘intelligent clients Creating finance packages for who value long term outcomes programme level area based
regeneration taking a whole place approach
WHAT is the research
Key Research Criteria
1. The research must encompass ALL HOUSING TENURES.2. The final research outcomes should include flowcharts/checklists and process maps to help decisionmakers identify the most relevant roadmaps, milestones and drivers for their particular circumstances.3. There should be a mechanism for the research findings and recommendations to be updated over time.4. The research should build on existing information wherever possible and NOT reinvent the wheel or duplicate other work currently or recently launched.5. The research should recognise that the voluntary standards and processes proposed should be visionary but underpinned by a pragmatism of how decisionmakers can move forward to secure better outcomes from housing investment.
WHAT did the research set out to do?1. Challenge Business as Usual (BAU) and demonstrate an alternative
model for achieving Value for Money (VFM)
1. Cheaper over lifetime
2. Affordable
3. Will deliver against multiple drivers/priorities (holistic)
2. Challenge the mantra that there is no money to retrofit our existing
housing stock at scale across all tenures.
3. Demonstrate that finance IS available to tackle some systemic issues
and that using this finance differently (INTELLIGENT CLIENT and
Smart and Sustainable Procurement) will support robust risk
management and security of outcomes
RESEARCH OUTPUTS – EASY TO USE
business caseImplementation
guidance
case studiescollaborative
projects
TOOL / MODEL
WHY did we propose the research?
To increase certainty on the quality of the outcomes from investment and reduce the seeming lottery of outcomes and project VFM
• Is this what was designed and what was paid for?
• Who cares what happens?
Why Do It in Housing?
We want to …increase certainty on the quality of the outcomes from investment and reduce the
seeming lottery of project VFM in construction quality and placemaking
BECAUSE we can choose with the left hand side or the right hand side quality of homes and placemaking
BENEFITS OF CHANGE
• Investment to raise energy efficiency levels will produce c£78 million of social benefits accounted for by induced reductions in cardio vascular and respiratory illnesses, cold home related falls and especially mental illness associated with fuel poverty
• New windows and doors will improve security, reduce crime and promote feelings of safety, with a major impact on mental health and well-being. c£137 million of social benefitsare accounted for by wellbeing gains and reduced demands on the NHS, social services and the Criminal Justice System
WHAT did we find?
• Evidence of success factors and, particularly, assessment of why things go wrong is very hard to find. Although there are lots of anecdotes.
WHAT did we find?
• Little evidence of pilot projects being assessed and findings being used in feedback loops which in turn inform organisational strategies. Rather, anecdotal reports that we tried something, it didn’t work, so tried something else.
Innovation is risky. We need to first of all do what we know how to do better and then within that activity create spaces for innovation where the risks are carefully managed and allowance is made for remedial work as required once the innovation is fully assessed.
Innovation can deliver great outcomes and some unexpected great outcomes. We need better mechanisms for capturing and sharing these examples.
RESEARCH BRIEF – SMART AND SUSTAINABLE PROCUREMENT
Develop a guide for the housing sector to enable better procurement
methods to be adopted to secure the best long-term value from
financial investment.
The guide will assist people undertaking housing-related
procurement to balance cost against other considerations including:
• quality
• technical merit
• environmental considerations
• whole-life running costs.
RESEARCH HEADLINES
SMART AND SUSTAINABLE PROCUREMENT
Evidence gathered during the research programme can demonstrate that the adoption of sustainable
procurement as a business tool can deliver a range of benefits including:
Purchaser
• Delivers lifetime value (revenue) against initial on-off (capital) cost
• Helps meet legislative and statutory targets
• Reduces key business costs (e.g. energy) by increasing resource efficiency and minimising associated supply risk/cost,
• Shortens supply chains, reduces transport miles and transport risk
• Increases brand and reputational value
Local Economy
• Increases local business development and economic growth
• Encourages/increases participation of SMEs, social enterprises and voluntary organisations
• Offers local employment opportunities, skills and training
Environmental Improvement
• Increases environmental protection (habitat protection)
• Reduces environmental impact, e.g. air pollution (unforeseen consequences)
Social Value
• Supports creation of social capital
• Embeds fair employment practices for all
• Encourages investment in social amenity
• Reduces fuel poverty
• Increases community engagement
• Improves social cohesion
The ModelCircular Process
The Model – starts with the ‘Intelligent Client’
Intelligent Client
(an individual or group within the buying organisation with delegated authority and sufficient technical knowledge of the product or services being provided by a third party to specify requirements for the
product or service and manage its delivery . The IC must collect and manage all data connected with the procurement (technical, organisational, financial, asset), understand and validate the need (including strategic alignment and cross-department policy compliance) for the purchase and how it will benefit
the business in the future)
Intelligent Client
Appoints Board Room
Champion
Establishes User - Buyer-
Supplier 'teams'
(delegated authority)
Acquisition Planning
ManagesDemand (Do we need to
buy?)
Prioritises company spend
Assesses (purchasing)
risk
Identifies business
opportunity
Introduces Early Market
(Supplier) Engagement
Prepares specification
(with identified sustainable
outputs/outcomes /KPIs)
Awards Contract and Oversees
Delivery
Carries out Monitoring and
Reporting
Commissions external audit
and Implements Recommendations/Improvement
s
Continuous improvement -feedback loop
ROSEMARY COYNE
2018
SHAP GBLSEP ERDF ROADSHOWPRIORITY 4:Housing:Designing, Funding and Delivering low carbon housing/ sustainable communities/energy infrastructure projects
How can ERDF support our plans?
• Looking at the potential for ERDF grant to support a grant programme to support the delivery of high quality new build housing and housing retrofit
• Striving for a replicable, scaleableapproach to creating long term positive impact from investment in housing
The Greater Birmingham and Solihull Local Enterprise Partnership (GB&S LEP) has received a notional allocation of €255.8 million.
“Strategy for Growth” UNDERPINS the GB&S LEP’s activity + informs the LEP’s ESIF Strategy. MISSION - create jobs - grow the economy –thereby raising the quality of life for all of the LEP’s population. VISION - to re-establish Greater Birmingham’s role as the major driver of the UK economy outside London.
Priority Axis 1: Research and Innovation
Priority Axis 3: Enhancing the Competitiveness of SMEs
Priority Axis 4: Supporting the Shift Towards a Low Carbon Economy in
All Sectors; Guidance Advice
Priority Axis 6: Preserving and Protecting the Environment and Promoting
Resource Efficiency
Priority Axis 4: Supporting the Shift Towards a
Low Carbon Economy in All Sectors
Investment Priority 4a – promoting the production and distribution of energy derived from renewable sources.
Investment Priority 4b – Promoting energy efficiency and renewable energy use in enterprises.
Investment Priority 4c – Supporting energy efficiency, smart energy management and renewable energy use in public infrastructure, including in public buildings and in the housing sector.
Investment Priority 4e – promoting low carbon strategies for all types of territories, in particular for urban areas, including the promotion of sustainable multimodal urban mobility and mitigation- relevant adaptation measures… “whole place solutions.”
Investment Priority 4f – Promoting research and innovation in, and adoption of low carbon technologies.
➢ ERDF CALLS 2018/2019➢ To be contracted by 2020 and complete
delivery by 2023
Call
window
Submit
calls to CoE
Comms
Calls
Published
Call Closing
Date (fixed
calls)
Total Capital
and Revenue
October
2018
18
September
2018
5 October
2018
23 November
2018
Approx
£160m
March
2019
26 February
2019
22 March
2019
3 May 2019
LOW CARBON CALLS OPEN 5.10.18 CLOSING DATE FOR ALL 23 NOVEMBER 2018
ALL BIDS need to reference Industrial Strategy and include energy management awareness raising and behavioural change.
No CALL REF AREAS COVERED VALUE P4
X Low Carbon: call in London (OC23R18P 0788) London 14.9 a,b,c,f
REVENUE ONLY
X Low Carbon: call in Oxfordshire (OC27R18P 0815) East of England and 1 others 0.535 b, f
X Low Carbon: call in Coventry and Warwickshire (OC06R18P 0888)North West 4,474,500 a,b,c,e,f
X Low Carbon: call in Leeds City Region (OC20R18P 0846) Yorkshire and Humber 15 a,b,c,e,f
X Low Carbon: call in Lancashire (OC19R18P 0854) North West 10.3 a,b,c,e,f
X Low Carbon: call in Hertfordshire (OC17R18P 0811) East of England and 1 others 1 b
X Low Carbon: call in The Marches transition region of Shropshire and Telford & Wrekin only (OC36R18P 0890)West Midlands 2 a,b,c,e,f
X Low Carbon: call in South East Midlands (OC31R18P 0858) East Midlands £7,242,900 a,b,c,f
X Low Carbon: call in Sheffield City Region (OC28R18P 0842) Yorkshire and Humber 13 a,b,c,e,f
X Low Carbon: call in Enterprise M3 (OC10R18P 0803) East of England and 1 others 2.093 a,b,f
X Low Carbon: call in Buckinghamshire Thames Valley (OC02R18P 0809)East of England and 1 others 1.379 a,b,c,e,f
X Low Carbon: call in Greater Birmingham and Solihull (OC12R18P 0868)West Midlands 2.6 a,b,c,e,f
X Low Carbon: call in Humber, York, North Yorkshire and East Riding (OC50R18P 0830)Yorkshire and Humber £12,216,227 a,b,c,e,f
Multi LEP Area Call and split to benefit transition area
X Low Carbon: call in Heart of the South West (OC16R18P 0784)South West 1
X Low Carbon: call in the Black Country (OC01R18P 0873) West Midlands 5 a,b,c,e,f
X Sustainable Urban Development (SME Support and Low Carbon): call in the West of England (OC37R18S 0894)South West P3 £2m P4 £1m c,f
X Low Carbon: call in North East (OC25R18P 0819) North East 26 a,b,c,e,f
Split to support transition area
X Low Carbon: call in Dorset (OC09R18P 0796) South West 3.5 a,b,c,e,f
X Low Carbon: call in Greater Lincolnshire (OC14R18P 0862) East Midlands 4,086,642 a,b,c,e,f
X Low Carbon: call in Tees Valley (OC34R18P 0826) North East 5.9 a,b,c,e,f
X Low Carbon: call in Leicester and Leicestershire (OC21R18P 0866)East Midlands 6.011 a,b,c,e,f
X Low Carbon: call in Cumbria (OC07R18P 0835) North West 3.4 a,b,c,e,f
X Low Carbon: call in Stoke-on-Trent and Staffordshire (OC32R18P 0877)West Midlands 4 a,b,c,f
X Low Carbon: call in Cheshire and Warrington (OC03R18P 0850)North West 3 a,b,c,e,f
X Low Carbon: call in Derby, Derbyshire, Nottingham and Nottinghamshire (OC08R18P 0883)East Midlands £8,649,227 a,b,c,e,f
Eligibility Criteria
Funding of last resort
Innovative
Match funded
Minimum project value
Contracted outputs
Detailed reporting including financial
Compliant procurement processes
Able to cash flow
In the current programme, SHAP has
supported 2 bids to Full Application and has
worked on project development for other
projects.
Please get in touch if you would like to know
more about ERDF and your project
proposals in the GBSLEP area.
Innovation in housing retrofitEnergiesprong 2050 Homes Nottingham - Helping people out of fuel povertyPilot phase 10. Prototype phase 10. ERDF funded scale up 192.https://www.energiesprong.uk/projects/nottinghamhttps://vimeo.com/289344914/833df9ce55 Sep 18https://vimeo.com/248462547 BBC news 2017https://www.dropbox.com/s/d9ywabo0wlu1eb0/Video%2009-09-2018%2C%2019%2030%2024.mov?dl=0
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