Third sector commissioning &  English local government procurement  J. Gordon Murray  PhD
Scope of paper Commissioning Benefits &  Barriers Third Sector Policy commitments to overcome barriers Research method Fin...
The commissioning cycle Strategic needs  assessment Decide priorities  and outcomes Plan and  design services Optional  ap...
The commissioning and purchasing cycles, and procurement Strategic needs  assessment Decide priorities  and outcomes Plan ...
THIRD  SECTOR Voluntary & Community Organisations Charities Mutuals Cooperatives Social  Enterprises
Benefits of Third Sector <ul><li>Specialist knowledge, expertise  </li></ul><ul><li>& skills </li></ul><ul><li>Ability to ...
Common barriers <ul><li>Short-term funding </li></ul><ul><li>Excessive risk placed on providers </li></ul><ul><li>Unrealis...
Commitments to overcome barriers <ul><li>The Compact </li></ul><ul><li>Small Business Friendly Concordat </li></ul><ul><li...
The Compact FCR legitimate Proportionate information requests Advance payments when appropriate Longer-term funding Propor...
Small Business Friendly Concordat Sound options  Appraisal Simple  tender processes Pay on time (30 days) Ensure  sub-cont...
Eight principles of good commissioning Engage with third sector in understanding needs User outcomes at heart Consult prov...
A tapestry of commitments FCR legitimate Proportionate information requests Advance payments when appropriate Longer-term ...
Research questions <ul><li>Do procurement managers view procurement & commissioning as different? </li></ul><ul><li>What i...
Research approach Exploratory Web-based (but 4 hour window) 12% response  Lead  practitioners ‘ single &  upper tier’ 3,00...
Are procurement and commissioning  just different names for the same thing?
Are procurement & commissioning the same thing? <ul><li>Commissioning is fundamentally about specifying the services/outco...
 
Conclusions <ul><li>Procurement is a policy tool in third sector commissioning </li></ul><ul><li>Practitioners acknowledge...
Implications <ul><li>Practitioners </li></ul><ul><ul><ul><li>Need to have a sound grasp of differences between commissioni...
Third sector commissioning &  English local government procurement Published in ‘Public Money & Management ’ www.slideshar...
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Third sector commissioning & Procurement

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Third sector commissioning and English local government procurement. Forthcoming in Public Money and Management

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Transcript of "Third sector commissioning & Procurement"

  1. 1. Third sector commissioning & English local government procurement J. Gordon Murray PhD
  2. 2. Scope of paper Commissioning Benefits & Barriers Third Sector Policy commitments to overcome barriers Research method Findings, conclusions & implications
  3. 3. The commissioning cycle Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle
  4. 4. The commissioning and purchasing cycles, and procurement Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle Determine the need Supplier selection Contracting Ordering Expediting Follow-up/ evaluation The purchasing cycle procurement
  5. 5. THIRD SECTOR Voluntary & Community Organisations Charities Mutuals Cooperatives Social Enterprises
  6. 6. Benefits of Third Sector <ul><li>Specialist knowledge, expertise </li></ul><ul><li>& skills </li></ul><ul><li>Ability to spot emerging trends </li></ul><ul><li>Involving people in service delivery </li></ul><ul><li>Independence </li></ul><ul><li>Reach hard-to-reach </li></ul><ul><li>Freedom from intuitional pressures </li></ul><ul><li>…… .. </li></ul>
  7. 7. Common barriers <ul><li>Short-term funding </li></ul><ul><li>Excessive risk placed on providers </li></ul><ul><li>Unrealistic prices </li></ul><ul><li>Excessive burdens of monitoring and evaluation </li></ul>
  8. 8. Commitments to overcome barriers <ul><li>The Compact </li></ul><ul><li>Small Business Friendly Concordat </li></ul><ul><li>Eight principles of good commissioning </li></ul>
  9. 9. The Compact FCR legitimate Proportionate information requests Advance payments when appropriate Longer-term funding Proportionate monitoring Sufficient termination notice
  10. 10. Small Business Friendly Concordat Sound options Appraisal Simple tender processes Pay on time (30 days) Ensure sub-contractors pay within 30 days
  11. 11. Eight principles of good commissioning Engage with third sector in understanding needs User outcomes at heart Consult providers to set priority outcomes Map providers Invest in market development Fair & transparent contracting Long-term contracts & risk sharing Seek feedback in review
  12. 12. A tapestry of commitments FCR legitimate Proportionate information requests Advance payments when appropriate Longer-term funding Proportionate monitoring Sufficient termination notice Sound options appraisal Simple tender processes Pay on time (30 days) Ensure sub-contractors pay within 30 days Engage with third sector in understanding needs User outcomes at heart Consult providers to set priority outcomes Map providers Invest in market development Fair & transparent contracting Long-term contracts & risk sharing Seek feedback in review
  13. 13. Research questions <ul><li>Do procurement managers view procurement & commissioning as different? </li></ul><ul><li>What is the level of awareness of the third sector commissioning policy commitments? </li></ul><ul><li>Are the policy commitments embedded in procurement policy, strategy, procedures and performance management? </li></ul>
  14. 14. Research approach Exploratory Web-based (but 4 hour window) 12% response Lead practitioners ‘ single & upper tier’ 3,000 potential respondents
  15. 15. Are procurement and commissioning just different names for the same thing?
  16. 16. Are procurement & commissioning the same thing? <ul><li>Commissioning is fundamentally about specifying the services/outcomes desired. Procurement is fundamentally about ensuring that those services/outcomes are delivered… </li></ul><ul><li>They are the same if procurement is defined as the process from identification of need through to disposal of asset or decommissioning of service. Commissioning focuses on the identification of need. </li></ul><ul><li>Commissioning & purchasing are both aspects of procurement. They are the same process – each has its own processes within the overall procurement framework… </li></ul><ul><li>It’s not helpful to have different phrases for what essentially are the same process, yes, in reality there are differences but not significant enough to warrant a ‘my approach is better than yours’ attitude. </li></ul><ul><li>My qualification is 'purchase and supply' it's the government that seem to need to waste time and money faffing with different names. </li></ul>
  17. 18. Conclusions <ul><li>Procurement is a policy tool in third sector commissioning </li></ul><ul><li>Practitioners acknowledge room for improvement in all aspects of commissioning cycle </li></ul><ul><li>Misunderstandings on difference between procurement and commissioning </li></ul><ul><li>% Compact Code Breaches on Funding & Procurement rising </li></ul><ul><li>Most lead practitioners claim to have a working awareness of the policy commitments </li></ul><ul><li>Lack of embedding in Compact Code, Small Business Friendly Concordat and 8 Principles in policy, strategy, procedures, and performance management </li></ul>
  18. 19. Implications <ul><li>Practitioners </li></ul><ul><ul><ul><li>Need to have a sound grasp of differences between commissioning and procurement as presented by UK Government policy </li></ul></ul></ul><ul><ul><ul><li>Awareness of policy commitments is necessary but not sufficient </li></ul></ul></ul><ul><ul><ul><li>Need to embed in procurement policy, strategy, procedures and performance management </li></ul></ul></ul><ul><li>Research </li></ul><ul><ul><ul><li>Test the findings of this exploratory research </li></ul></ul></ul><ul><ul><ul><li>Comparative impact assessment of the improvement in public services as a result of embedding policy </li></ul></ul></ul><ul><ul><ul><li>Consider the effectiveness of eNewsletters as a research tool </li></ul></ul></ul><ul><ul><ul><li>Establish the effectiveness of cascading policy to practice in general </li></ul></ul></ul><ul><ul><ul><li>Is procurement ‘the weakest link’ in third sector commissioning? </li></ul></ul></ul>
  19. 20. Third sector commissioning & English local government procurement Published in ‘Public Money & Management ’ www.slideshare.net/DrGordonMurray [email_address] www.twitter.com/DrGordie
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