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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