Benefit Driven Procurement
Using buying power for economic and social benefits
Benefit Driven Procurement aims to seek greater value from procurement. These can range from apprenticeships, and the creation of meaningful and inclusive employment opportunities for underrepresented groups to supporting suppliers who have and implement their own Social Procurement and Living Wage policies
While procurement’s main goal is to ensure that The City of Calgary has the goods and services needed for its operations, it can also provide positive impacts in our community. Benefit Driven procurement is about seeking to make intentional positive contributions to both the local economy and the overall vibrancy of the community.
Benefit Driven Procurement is synonymous with Social Procurement. The City of Calgary made the decision to call it Benefit Driven Procurement, to ensure there was no confusion with other social and non-profit programs.
Through Benefit Driven Procurement the purchase of goods and services still takes place through a competitive and transparent bidding process. The process is designed to create extra benefits for our community, but does not increase the cost of procurement or decrease the quality of what we receive.
Dispelling the myths
Watch our video about Benefit Driven Procurement to learn more.
Taking the first steps toward social procurement
How does Benefit Driven Procurement work:
The City is currently using different methods of including Benefit Driven Procurement in its procurement process, some of them are:
- Encouraging low dollar amount procurements (under trade agreement thresholds) at The City to be used towards buying local where possible.
- Procurements for goods and services that are between $5,000 to less than $75,000 and procurements for construction from $5,000 to $200,000 The City will obtain a minimum of three supplier quotes of which at least one is from a local supplier.
- And encouraging business units at The City to use a Benefit Driven Procurement questionnaire in Request for Proposal documents, for any goods and services procurement above $75,000 and construction above $200,000.
- This questionnaire included as part of the evaluation criteria together with other elements such as price, quality, materials, time etc.
- To understand how the questionnaire is used, watch the video on the left.
- To get the key elements of that you need to know when responding to RFP and RFx documents for The City of Calgary, please watch this video.
- Building awareness in the vendor community on the importance of adopting benefit driven practices and encouraging the community towards meaningful positive change.
Multi-stakeholder Advisory Task force
A multi-stakeholder advisory task force has been established to provide feedback and recommendations on the next steps throughout the pilot process.
The task force consists of City, private sector, community representatives, and Social Procurement subject matter experts to ensure project and policy input from stakeholders. Task force members are also committed to sharing information back to the groups that they represent.
At the conclusion of its pilots The City aims to implement a policy that is inclusive of Benefit driven Procurement by the end of 2021.
If you have any questions about Benefit Driven Procurement, please reach out to the project team via email.