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Third sector commissioning - the reality
Citation preview
Better outcomes for individuals & communities
Better outcomes for individuals & communities
Efficiency gains
&community
benefits
Smarter Commissioning
(more innovative & effective)
the commissioning cycleStrategic needs
assessment
Decide priorities and outcomes
Plan and design services
Optional appraisal
Sourcing
Delivery
Monitor and review
The commissioning
cycle
Strategic needs assessment
Decide priorities and outcomes
Plan and design services
Optional appraisal
Sourcing
Delivery
Monitor and review
Determine the need
Supplier selection
Contracting
Ordering
Expediting
Follow-up/evaluation
The commissioning
cycle
The purchasing
cycle
procurement
Better outcomes for individuals & communities
Efficiency gains
&community
benefits
Smarter Commissioning
(more innovative & effective)
Design Delivery Holding to account
Benefits of third sector• Specialist knowledge, expertise and/or
skills• Ability to spot emerging trends• Involving people in service delivery• Independence from existing structures and
models• Reach the hard-to-reach• Freedom and flexibility from institutional
pressures• …
Better outcomes for individuals & communities
Efficiency gains
&community
benefits
Smarter Commissioning
(more innovative & effective)
Optimal use of third sector
Design (Voice)
Delivery (Choice)
Holding to account (Voice)
NAO identified the following common problems
• Short-term funding• Excessive risk placed on providers• Unrealistic prices• Excessive burdens of monitoring and
evaluation
Commitments to overcome barriers
• The Compact
• Small Business Friendly Concordat
• Eight principles of good commissioning
8 principles of good commissioning
• Understand the needs of users etc• Consult provider organisations when setting
priorities• Put outcomes for users at the heart of the process• Map the fullest practical range of providers• Consider investing in the provider base• Ensure contract processes are transparent and fair• Ensure long term contracts and risk sharing• Seek feedback to review effectiveness of the
commissioning process
A reality check
Third sector commissioning issues• Commissioning v procurement• Grants v contracts• State aid v public procurement law• Labour v Conservative approach
– Voice and/or choice– Emphasis on Grants – Aggregated contracts
• TUPE• Technical v outcome based specifications • Diversity
53%
47%
Yes
No
Are procurement and commissioning just different names for the same thing?
Local government lead practitioners survey
Is procurement the same as commissioning?
... Strategic Procurement that takes a holistic approach to assessing need and reviewing the make or buy options is very similar to commissioning. Commissioning can be used as an excuse to avoid competition in the full sense and needs to be well understood and managed and involve procurement staff in that process.
My qualification is 'purchase and supply' it's the government that seem to need to waste time and money faffing with different names.
Lead council procurement practitioners
Compact Breaches
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006 2007
Funding & procurement code
Consultation & policyappraisal
Community groups
Black & minorirty ethnicorganisations
volunteering
Compact (overarching)
Source: Compact Advocacy Programme
TSOs Baseline position: November 2007
• 20% consider procurement processes fair and transparent
• 46% say contracts required them to take on more financial risk than they could manage
• Some concerns about equalities
80%
5%
15%
Yes
No
Don't know
Significant commissioners agreement on need for organisation to change
0%
20%
40%
60%
80%
100%
no scope
some scope
signif icant scope
exemplary
Significant commissioners acknowledged scope for improvement
Significant commissioners embedding of policy commitments
0
10
20
30
40
50
60
70
Unaware
Aware
but n
ot in
deta
il
Worki
ng a
waren
ess
Embe
dded
in p
olicy
Embe
dded
in st
rate
gy
Embe
dded
in p
roce
dure
s
Embe
dded
in p
erfo
rman
ce m
anage
...
Compact Code of Funding &procurement
8 principles
Procurement practitioners engagement
0
10
20
30
40
50
60
Unaware
of it
Aware
of it b
ut not
in d
etail
Worki
ng a
waren
ess o
f it
Embe
dded
in p
rocu
rement
polic
y
Embe
dded
in p
rocu
rement
strate
gy
Embe
dded
in p
roce
dure
s
Embe
dded
in p
erfo
rman
ce m
anage
men
t
Compact Code
Concordat
8 Principles%
Conclusions
1. Acknowledged room for improvement in all aspects of commissioning cycle
2. Misunderstandings difference between procurement and commissioning
3. Third sector lack confidence that procurement is fair and transparent
4. % Compact Code Breaches on Funding & Procurement rising5. Low awareness of Compact Code and 8 Principles6. Lack of embedding in Compact Code and 8 Principles in
policy, strategy, procedures, and performance management
NPTSC key messages
• There needs to be cultural change in central and local government, PCT’s etc
• Involvement of the third sector is not a process – it is not about ticking boxes
• Decision making needs to reflect government commitments to the sector
Potential tools
• Third sector commissioning Community of Practice www.communities.idea.gov.uk
• Free eLearning tool
• Regional training events livegroup.co.uk/nptsc
• Accredited training www.idea.gov.uk/3scommissioning