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Creative Commissioning


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presentation by peter ramsden at best procurement Leicester 5 december 07

Published in: Economy & Finance
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Creative Commissioning

  1. 1. Public Service Opportunity Social Enterprise is Your Business Peter Ramsden Frez ltd Creative Commissioning The BEST Procurement Development Partnership is part funded by the European Social Fund under the EQUAL Community Initiative
  2. 2. Peckham Health Centre
  3. 3. Peckham Health Centre: back to the future <ul><li>In 1935, two pioneering doctors opened the Peckham Health Centre was a bold departure in the medical field in the 1930s, </li></ul><ul><li>concentrating on a preventative, rather than a curative approach to health. </li></ul><ul><li>housed their centre in a purpose built Modern building </li></ul><ul><li>Centred on a huge swimming pool, </li></ul><ul><li>People could buy wholemeal bread and fresh vegetables </li></ul><ul><li>Closed in 1950 because its emphasis on prevention did not fit into the dominant paradigm of the new NHS </li></ul><ul><li>Now converted into loft style flats </li></ul>
  4. 4. Many misconceptions <ul><li>‘ you can’t do this under EU rules’ </li></ul><ul><li>‘ You have to have an open tender process’ </li></ul><ul><li>‘ Social enterprises are not eligible’ </li></ul><ul><li>‘ You have to go to OJEU (£3.6m for works and £145000 for services (£95000 for central govt) </li></ul><ul><li>We need to find ways of creating the best services for the best society and work with the rules to achieve this </li></ul>
  5. 5. Influences: 2007 Research for National Employment Panel Business Commission Race equality in the workplace <ul><li>Employment criteria being used by Sheffield for its entire housing renewal programme </li></ul><ul><li>Northern Ireland using procurement to encourage equal opps between religious groups </li></ul><ul><li>No need to use ‘hard’ affirmative action as practiced in the USA </li></ul><ul><li>Canada had best practice </li></ul>
  6. 6. Influences: looking at how spending can achieve benefits <ul><li>NEF’s Local Money Flows 3 tool showed that spending money locally could multiply the economic and social benefits </li></ul><ul><li>Plugging the Leaks – simple model showing to communities how money flows in and out </li></ul><ul><li>Social Return on Investment demonstrating value and proving that complex problems imposed costs on different levels of governance and departments even in the same organisation </li></ul>
  7. 7. Influences: Local Labour Clauses <ul><li>Local labour found to be illegal but perfectly okay to use 15% long term unemployed employment </li></ul><ul><li>Case study found in St Herblain near Nantes </li></ul><ul><li>Entire ERDF construction process being used for this purpose </li></ul><ul><li>European Commission rules that social clauses are legitimate </li></ul>
  8. 8. Influences: Emra Inequality in the East Midlands Study 2007 <ul><li>Half of the good practices found in this study were social enterprise delivery models, more had to be left out. </li></ul><ul><li>Genesis </li></ul><ul><li>Hill Holt Wood </li></ul><ul><li>TumTum housing </li></ul><ul><li>Sherwood energy village </li></ul><ul><li>Bulwell Toy Library </li></ul>
  9. 9. Policy is designed for spending not for saving <ul><li>‘ there is no readily recognisable mechanism for one public body to achieve recognition from HM treasury that creates savings in another part of the public sector’ </li></ul>
  10. 10. Trends in public sector procurement <ul><li>Larger and longer contracts </li></ul><ul><li>Increasing complexity of bidding systems </li></ul><ul><li>new eprocurement systems that encourage higher bars to qualification </li></ul><ul><li>Poorly drawn up specifications </li></ul><ul><li>Cost of abortive bids </li></ul><ul><li>Over onerous ITTs (often designed for big contracts and assuming huge workforces) </li></ul>
  11. 11. Public Sector Powers <ul><li>RDAs can ‘ do anything which it considers expedient for its purposes, or for purposes incidental thereto’ </li></ul><ul><li>Local authorities: anything which they consider is likely to achieve the promotion or improvement of the economic, social or environmental wellbeing of the area, or part of the area.’ </li></ul><ul><li>NHS Trusts and PCTs ‘anything necessary or expedient </li></ul><ul><li>Source Anthony Collins ‘Social Enterprise and the Public Sector </li></ul>
  12. 12. Social enterprises are as diverse as the private sector <ul><li>Selling something already bought (but from other suppliers) – improving busienss skills, ensuring a level playing field – SME friendly concordat </li></ul><ul><li>  selling something different from what the client currently buys </li></ul><ul><li>Selling something the public sector does not buy </li></ul>
  13. 13. Different ways of structuring the purchaser – supplier relationship <ul><li>Contracting </li></ul><ul><li>Granting </li></ul><ul><li>Joint ventures </li></ul><ul><li>Creating new enterprises </li></ul><ul><li>Equity shares </li></ul>
  14. 14. No one model of Social Enterprise added value <ul><li>Social innovation in the delivery of public services e.g. ECT in kerbside recycling, FRC in employability, Sunderland Home care </li></ul><ul><li>Creation of new services e.g. SIED Equal DP embedded enterprise advisers in refugee communities </li></ul><ul><li>User participation and control e.g. Principia </li></ul><ul><li>Worker control, Suma wholefoods </li></ul><ul><li>Achieving multiple objectives e.g. Hill Holt Wood </li></ul><ul><li>Fair trade – Divine Chocolate, Coffee </li></ul><ul><li>Value for money – no profit taking by shareholders </li></ul>