new approaches to commissioning and delivering services through consortium working dave packwood
TRANSCRIPT
New approaches to commissioning and
delivering services through consortium working
Dave Packwood
Why consortia?Barriers Facing Some Organisations
The procurement process (long, complex, expensive at least £2,000 per bid)
Unable to find out about opportunities Contracts are too big due to aggregation
and 25% rule Frameworks (if too complex and too large) Competition from larger providers
Barriers…cont Pre-qualification Understanding the requirements
(anachronisms used, poorly worded specifications)
Lack of feedback from commissioners
Cashflow Desire for one contractor Desire to shelter smaller groups
Consortia – overcoming barriers
Scale Development of specialist tendering and
contract management infrastructure Greater bargaining power Adding value at the frontline, clear social
value Building capacity of smaller groups One point of contracting for commissioners Sticking to the knitting Reducing competition
Key Trends Deficit reduction The ‘more for less’ agenda – downward
pressure on unit price focus on outcomes Reduction of ‘transaction costs’ often around
30% through aggregation (joint commissioning, bundling) -> devolved commissioning
Localism Act (inc. Community Right to Challenge) Social Value Act Personalisation Growth of voluntary sector consortia in North West
First Thoughts
What is the first thing you think about when someone talks about partnerships and collaboration
What have been the major problems and issues that you have experienced.
Different Contracting Forms
Provider Managing Agent Managing Provider ‘Super Provider’
Provider
Contractor
Provider Provision of Services
Managing Agent Contractor
Managing Agent
Sub-contractors Provision of Services
Managing Provider Contractor
Managing Provider Provision of Services
Sub-contractors Provision of Services
‘Super Provider’
Provider Provider
Provider Provider
Provider Provider
How does it work? Incorporation to form new legal
entity Providers become members of this
company Hub and spokes operating model
Hub & Spokes operating model
Ownership & Management Structure
Associate Members
The Thirds Model In order to ensure openness and
transparency the Board of Directors is structured using a principle of Thirds.
Third Third Third Full members Associate members
Independents
Follow up on Issues Have the systems and processes outlined
helped to alleviate the issues and dangers previously identified
Which still remain
What would reduce these fears and issues for you
ExamplesGreater Together CYP & Families Consortium in Lancashire Set up in 2011 Formal consortium established as charitable company Won first contract - £750k to deliver targeted youth support services Successful in Community Right to Challenge with Lancashire County
Council
for a £3 Million tender for Domestic Abuse Services Successful in 6 of 9 Mini Competitions Early Support Core Offer Nov 2013
Knowsley Third Sector Consortium Working group set up December 2012, incorporated March 21st 2013 Tendering for children and young peoples contracts - April 2013 Successful in bid for Young Carers October 2013 Successful in bid for Children who are missing and at risk of CSE
November 2013 Successful in bid for Community Transport programme November 2013 Bidding for Emotional Health and Wellbeing tender December 2013
Processes Needed Ensure this what is wanted by the sector and commissioners Form Steering group to take it forward Seed corn/set up funding 3 Year Strategic/Business Plan, including core values, core offer, SWOT, competitor analysis, local
context Membership Prospectus Membership recruitment and validation Incorporation and if appropriate charity registration Investment finance for ‘baseline’ hub? Submit and Win tenders Deliver
Challenges Fixed Management Fee 10%, reducing to 5% for larger tenders Only consortia Hub gets a mgt fee, providers have staffing plus model, working differently Need for agreed unit costs from disperate providers Forcing down of unit costs Initially lots of effort – not much funding Less of the pie but more pies This is not a lifeboat, or just a new way to get funding, it has to be a new way of working
Critical Success FactorsDemand side Commissioner Commitment Commissioners’ Attitude to Change &
Risk Market Opportunities
Critical Success Factors…cont
Supply Side VCS Moving From culture of
entitlement to culture of enterprise Leadership, business skills and
entrepreneurial acumen Long-term vision, not short term gains Resilience
What other issues and questions emerge for you by about partnership
and consortia
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