101018 czech parimentary committee re commissionisioning

Commissioning, procurement, purchasing and third sector commissioning

Dr Gordon Murray

18 October 2010 www.local.gov.uk

Better outcomes for individuals & communities

Inputs Outputs Outcomes

Efficiency The change

Effectiveness = Doing the right things

Language problems

Better outcomes for individuals & communities

Efficiency gains

&community

benefits

Smarter Commissioning

(more innovative & effective)

Commissioning

“Commissioning is the cycle of assessing the needs of the people in an area,

designing and then securing the appropriate service”

(Cabinet Office, 2006, p. 4)

Strategic needs assessment

Decide priorities and outcomes

Plan and design services

Optional appraisal

Sourcing

Delivery

Monitor and review

The commissioning cycle

The purchasing cycle

Determine the need

Supplier selection

Contracting

Ordering

Expediting

Follow-up/evaluation

(derived from van Weele, 2005)

Strategic needs assessment

Decide priorities and outcomes

Plan and design services

Optional appraisalSourcing

Delivery

Monitor and review

The commissioning

cycle

The commissioning and purchasing cycles, and procurement

Determine the need

Supplier selection

Contracting

Ordering

Expediting

Follow-up/evaluation

The purchasing

cycle

procurement

Third sector commissioning

THIRD SECTOR

Voluntary &Community

Organisations

Charities

Mutuals Cooperatives

Social Enterprises

Specialist knowledge, expertise

& skills

Ability to spot emerging trends

Involving people in service delivery

Independence

Reach hard-to-reach

Freedom from intuitional pressures

……..

Benefits of Third Sector

Common barriers

• Short-term funding• Excessive risk placed

on providers• Unrealistic prices• Excessive burdens of

monitoring and evaluation

Commitments to overcome barriers

• The Compact• Small Business Friendly

Concordat• Eight principles of good

commissioning

The Compact

FCR legitimate

Proportionate

information requests

Advance payments when appropriate

Longer-term funding

Proportionate monitoringSufficient termination notice

Small Business Friendly Concordat

Sound options

Appraisal

Simple

tender processes

Pay on time (30 days)Ensure

sub-contractors pay

within 30 days

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

A tapestry of commitments

FCR legitimate

Proportionate

information requests

Advance payments when appropriate

Longer-term funding

Proportionate monitoringSufficient 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

A shift to outcomes based commissioning,

co-design and co-production must release innovation and remove

waste

Commissioning, procurement, purchasing and third sector commissioning

gordon.murray@local.gov.uk

www.slideshare.net/DrGordonMurray