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081209 Mo J

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Third sector commissioning - the reality

Third sector commissioning - the reality

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  • Procurement is about economy and efficiency, Commissioning effectiveness. Procurement is back office, commissioning is front line.
  • Transcript

    • 1.  
    • 2. Better outcomes for individuals & communities
    • 3. Better outcomes for individuals & communities Efficiency gains & community benefits Smarter Commissioning (more innovative & effective)
    • 4. the commissioning cycle Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle
    • 5. 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
    • 6. Better outcomes for individuals & communities Efficiency gains & community benefits Smarter Commissioning (more innovative & effective) Design Delivery Holding to account
    • 7. Benefits of third sector <ul><li>Specialist knowledge, expertise and/or skills </li></ul><ul><li>Ability to spot emerging trends </li></ul><ul><li>Involving people in service delivery </li></ul><ul><li>Independence from existing structures and models </li></ul><ul><li>Reach the hard-to-reach </li></ul><ul><li>Freedom and flexibility from institutional pressures </li></ul><ul><li>… </li></ul>
    • 8. Better outcomes for individuals &amp; communities Efficiency gains &amp; community benefits Smarter Commissioning (more innovative &amp; effective) Optimal use of third sector Design (Voice) Delivery (Choice) Holding to account (Voice)
    • 9. NAO identified the following common problems <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>
    • 10. 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>
    • 11. 8 principles of good commissioning <ul><ul><li>Understand the needs of users etc </li></ul></ul><ul><ul><li>Consult provider organisations when setting priorities </li></ul></ul><ul><ul><li>Put outcomes for users at the heart of the process </li></ul></ul><ul><ul><li>Map the fullest practical range of providers </li></ul></ul><ul><ul><li>Consider investing in the provider base </li></ul></ul><ul><ul><li>Ensure contract processes are transparent and fair </li></ul></ul><ul><ul><li>Ensure long term contracts and risk sharing </li></ul></ul><ul><ul><li>Seek feedback to review effectiveness of the commissioning process </li></ul></ul>
    • 12. A reality check
    • 13. Third sector commissioning issues <ul><li>Commissioning v procurement </li></ul><ul><li>Grants v contracts </li></ul><ul><li>State aid v public procurement law </li></ul><ul><li>Labour v Conservative approach </li></ul><ul><ul><li>Voice and/or choice </li></ul></ul><ul><ul><li>Emphasis on Grants </li></ul></ul><ul><ul><li>Aggregated contracts </li></ul></ul><ul><li>TUPE </li></ul><ul><li>Technical v outcome based specifications </li></ul><ul><li>Diversity </li></ul>
    • 14. Are procurement and commissioning just different names for the same thing? Local government lead practitioners survey
    • 15. Is procurement the same as commissioning? <ul><li>.. . 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. </li></ul><ul><li>My qualification is &apos;purchase and supply&apos; it&apos;s the government that seem to need to waste time and money faffing with different names. </li></ul>Lead council procurement practitioners
    • 16. Compact Breaches Source: Compact Advocacy Programme
    • 17. TSOs Baseline position: November 2007 <ul><li>20% consider procurement processes fair and transparent </li></ul><ul><li>46% say contracts required them to take on more financial risk than they could manage </li></ul><ul><li>Some concerns about equalities </li></ul>
    • 18. Significant commissioners agreement on need for organisation to change
    • 19. Significant commissioners acknowledged scope for improvement
    • 20. Significant commissioners embedding of policy commitments
    • 21. Procurement practitioners engagement %
    • 22. Conclusions <ul><li>Acknowledged room for improvement in all aspects of commissioning cycle </li></ul><ul><li>Misunderstandings difference between procurement and commissioning </li></ul><ul><li>Third sector lack confidence that procurement is fair and transparent </li></ul><ul><li>% Compact Code Breaches on Funding &amp; Procurement rising </li></ul><ul><li>Low awareness of Compact Code and 8 Principles </li></ul><ul><li>Lack of embedding in Compact Code and 8 Principles in policy, strategy, procedures, and performance management </li></ul>
    • 23. NPTSC key messages <ul><ul><li>There needs to be cultural change in central and local government, PCT’s etc </li></ul></ul><ul><ul><li>Involvement of the third sector is not a process – it is not about ticking boxes </li></ul></ul><ul><ul><li>Decision making needs to reflect government commitments to the sector </li></ul></ul>
    • 24. Potential tools <ul><li>Third sector commissioning Community of Practice www.communities.idea.gov.uk </li></ul><ul><li>Free eLearning tool </li></ul><ul><li>Regional training events livegroup.co.uk/nptsc </li></ul><ul><li>Accredited training www.idea.gov.uk/3scommissioning </li></ul>
    • 25. &nbsp;
    • 26. Programme Change Model Better outcomes for individuals &amp; communities <ul><li>Change Hearts </li></ul><ul><li>&amp; Minds </li></ul><ul><li>Champions own training responsibility </li></ul><ul><li>Delegate to Change Managers </li></ul>Push Ministers, DGs. etc Training provider negotiations Reinforce through performance mgt, IDeA offers, &amp; communications Training needs Portfolio of training provision Commissioners embed Compact &amp; 8 Principles Advisory Group Agree TS bidding capacity improvement needs Bidding capacity improved Greater TS capacity to respond to bids Fairer &amp; more transparent procurement Increased probability of TS bidding success Greater TS involvement in PSD
    • 27. Commissioners Baseline position: November 2007 <ul><li>39% aware of eight principles of good commissioning </li></ul><ul><li>21% say they always consult TSOs at an early stage on the commissioning process </li></ul><ul><li>36% say they most often used outcomes </li></ul><ul><li>29% aware to a ‘considerable extent’ of the providers in their area and how they can contribute </li></ul><ul><li>44% average contract length 3 years or more ( 35% 1 year ) </li></ul><ul><li>40% say they always or often sought feedback from providers </li></ul>

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