Acca commissioning, procurement, purchasing and third sector commissioning

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Commissioning, procurement, purchasing and third sector commissioning. presentation to ACCA Pubic Sector Managers forum, London, 5 May 2010

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Acca commissioning, procurement, purchasing and third sector commissioning

  1. 1. Commissioning, procurement, purchasing and third sector commissioning Dr Gordon Murray ACCA Public Sector members 5 May 2010
  2. 2. Better outcomes for individuals & communities
  3. 3. Better outcomes for individuals & communities Efficiency gains & community benefits Smarter Commissioning (more innovative & effective)
  4. 4. Commissioning <ul><li>“ Commissioning is the cycle of assessing the needs of the people in an area, designing and then securing the appropriate service” </li></ul><ul><li>(Cabinet Office, 2006, p. 4) </li></ul>
  5. 5. The commissioning cycle Strategic needs assessment Decide priorities and outcomes Plan and design services Optional appraisal Sourcing Delivery Monitor and review The commissioning cycle
  6. 6. The purchasing cycle Determine the need Supplier selection Contracting Ordering Expediting Follow-up/ evaluation The purchasing cycle (derived from van Weele, 2005)
  7. 7. The commissioning and purchasing cycles 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
  8. 8. 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
  9. 9. A shift to outcomes based commissioning, co-design and co-production must release innovation and remove waste
  10. 10. Third sector commissioning
  11. 11. Who are the Third Sector? <ul><li>Voluntary and community organisations </li></ul><ul><li>Charities </li></ul><ul><li>Social enterprises </li></ul><ul><li>Mutuals, and </li></ul><ul><li>Cooperatives </li></ul>
  12. 12. Benefits of the 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>
  13. 13. 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>
  14. 14. 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>
  15. 15. The Compact <ul><li>Full Cost Recovery </li></ul><ul><li>Proportionate information requests </li></ul><ul><li>Advance payments, where appropriate </li></ul><ul><li>Three-year funding </li></ul><ul><li>Proportionate monitoring </li></ul><ul><li>Adequate notice </li></ul>
  16. 16. Compact breaches
  17. 17. The Concordat <ul><li>Contracts supported by a sound business case and options appraisal </li></ul><ul><li>Keeping tender processes simple </li></ul><ul><li>Payment in 30 days </li></ul><ul><li>Ensuring sub-contractors also pay within 30 days </li></ul>
  18. 18. Eight principles of good commissioning <ul><li>Understand the needs of users etc., by engaging with TSOs as advocates to access their specialist knowledge </li></ul><ul><li>Consult provider organisations when setting priorities </li></ul><ul><li>Put outcomes for users are the heart of the process </li></ul><ul><li>Map the fullest practical range of providers </li></ul><ul><li>Consider investing in the provider base </li></ul><ul><li>Ensure contract processes are transparent and fair </li></ul><ul><li>Ensure long-term contracts and risk-sharing </li></ul><ul><li>Seek feedback to review effectiveness of the commissioning process </li></ul>
  19. 19. Are procurement and commissioning just different names for the same thing?
  20. 20. 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>
  21. 21. Significant commissioners embedding of policy commitments
  22. 23. Conclusions <ul><li>Commissioning and third sector commissioning are hot topics </li></ul><ul><li>Shift to outcomes based commissioning, co-design and co-production should deliver improved service and cost reduction </li></ul><ul><li>Misunderstandings on difference between procurement and commissioning </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>
  23. 24. Commissioning, procurement, purchasing and third sector commissioning [email_address] www.slideshare.net/DrGordonMurray

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