Dr Gordon Murray Programme Manager

Transforming the procurement vision:

Third sector commissioning myopia

Better outcomes for individuals & communities

Better outcomes for individuals & communities

Efficiency gains

&community

benefits

Smarter Commissioning

(more innovative & effective)

Commissioning & procurement

• Commissioning is the cycle of assessing the needs of the people in an area, designing and then securing the appropriate service

• Procurement is one of the means of acquiring what is being commissioned

Better outcomes for individuals & communities

Efficiency gains

&community

benefits

Smarter Commissioning

(more innovative & effective)

Design Delivery Holding to account

Who are TSO’s?

• Voluntary and community organisations

• Charities

• Social enterprises

• Mutuals, and

• Cooperatives

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)

Barriers to greater third sector involvement?

NAO identified the following common problems

• Short-term funding• Excessive risk placed on providers• Unrealistic prices• Excessive burdens of monitoring and

evaluation

TSOs view of the big issues• Lack of understanding of what the third

sector can deliver• Lack of understanding of how the third

sector operates, how it can best be utilised• Perceived higher-risk leading to over-

bureaucratic processes• High commissioners turnover• Lack of clarity and transparency in

decision-making• Size of contracts exceeds capabilities of

specialist organisations

Maximising the opportunities

The Compact and Small Business Friendly Concordat

• The Compact and its Funding and Procurement Code of Good Practice

• 99% of English councils have adopted the Compact

• 162 English councils have signed the Small Business Friendly Concordat

Eight principles of good commissioning

1. Understand the needs of users etc., by engaging with TSOs as advocates to access their specialist knowledge

2. Consult provider organisations when setting priorities

3. Put outcomes for users are the heart of the process

4. Map the fullest practical range of providers5. Consider investing in the provider base6. Ensure contract processes are transparent and

fair7. Ensure long-term contracts and risk-sharing8. Seek feedback to review effectiveness of the

commissioning process

Implications for procurement professionals

• Part of ‘Use of Resources’ strategy• New roles• Commissioners will have demands for support &

advice– Funding strategy– Honouring the commitments of the Compact & Concordat– Removing the barriers– Engagement with the market– Interpreting the legislation– …

Transforming the procurement vision:

Third sector commissioning a lens of opportunity

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)

Transforming the procurement vision:A lens of opportunity

Better outcomes for individuals

& communities

Change Hearts & Minds

1. Champions own training responsibility

2. Delegate to Change Managers

Programme Change Model

Push Ministers, DGs. etc

Training provider negotiations

Reinforce throughperformance mgt, IDeA offers,

& communications

Trainingneeds

Portfolio of

training provision

Commissioners embed

Compact & 8 Principles

Advisory GroupAgree TS bidding

capacity improvement needs

Bidding capacityimproved

Greater TS capacity to respond to bids

Fairer & more transparent

procurementIncreased

probability of TS

bidding success

Greater TS

involvement in PSD

Dr Gordon Murray Programme Manager