Commissioning, Procurement

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Commissioning, Procurement and the Third Sector
David Wright, Regional Director davidwright_at_gatesh
ead.gov.uk
NE Improvement Efficiency Partnership
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National Context

• National Procurement Strategy
• Local Government White Paper
• Sustainable Community Strategies, Local Strategic
  Partnerships, Local Area Agreements
• Office of the 3rd Sector Action Plans
• National Programme for 3rd Sector Commissioning
• Social Clauses
• Sustainable Procurement Task Force
• LG Sustainable Procurement Strategy
• National Improvement Efficiency Strategy
• Improvement, Efficiency, Value for Money in
  place-shaping
• Audit Commission CAA assessment 2009

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Commissioning Procurement Cycle
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Identifying the Gap

• Lack of clarity of public sector leadership
  commitment to 3rd sector
• Critical, complex and confused financial
  relationships
• Lack of understanding and awareness of each other
• Public sector procurement developmental needs
• Legislative and accounting constraints?
• Culture and capacity of 3rd sector
• Resistance to change need for transformational
  ability
• Lack of collaborative approach to find solutions

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NE framework

• TSOs can play a significant and increasing role
  in needs assessment, service planning and
  delivery
• Public sector bodies can develop strategic
  commissioning and procurement processes that
  involve the Third Sector and drive improvement
  and community engagement and
• TSOs can be involved in the commissioning
  processes in order to secure better outcomes for
  service users

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Commissioning and procuring services from the
Third Sector - benefits

• Achieving best value
• Contribution to efficient public services and
  place-shaping
• Regenerating communities, addressing disadvantage
  and providing equality of service
• Economic benefits
• Independence and trust of service end users
• Addressing the social objectives of public bodies
• Building social capital
• Sustainability

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NE Framework Key Conclusions

• Develop capacity and culture change in both the
  public sector and in the Third Sector
• Develop public sector awareness of the value
  added function of TSOs conversely TSOs need to
  evidence this
• General understanding of the full commissioning
  and procurement process is not consistent within
  or across agencies
• TSOs (especially smaller groups) have difficulty
  accessing the market
• TSOs have difficulty responding to market
  conditions (large scale and/or multi-disciplinary
  contracts)
• TSOs face challenges organising themselves to
  influence commissioners
• The Third and Public sectors have variable
  capability to deal with legal and tendering
  processes
• There is a need to recognise the diversity of the
  Third Sector and client-based segmentation
  (children young people health social care
  BME etc.).

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NE Commissioning Action Plan

• Policy
• Public sector leaders committed to engagement
  with 3rd sector
• 3rd Sector understand contracting and the
  relevant accounting practice to which public
  sector agencies are subject
• Skills and Knowledge
• Public sector clear about the added value that
  they are seeking from a particular service, the
  need for longer term contracts, a common language
  around cost structures and fair pricing, and a
  fair and proportionate balance of risk.
• 3rd Sector organisations need to be clear about
  roles, responsibilities, and accountabilities.
• Communications and Culture
• raised awareness in both sectors about the
  opportunities for third sector working to add
  value to public service delivery and a more
  proactive approach to market shaping and
  development by both commissioners

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Thank You

• QUESTIONS?
• David Wright, Regional Director
• davidwright_at_gateshead.gov.uk