julian blake co-head charity & social enterprise bates wells braithwaite 8th july 2014

E3M Seminar: New Opportunities for

Partnership between Social Enterprises

and Commissioning Authorities

Co-production, including commissioning

without procurement (3)

Julian BlakeCo-head Charity & Social EnterpriseBates Wells Braithwaite

8th July 2014

1. Development options best require: 1. Consultation of users & market suppliers and Strategy set by priorities;

2. Further service consultation leading to informed service specifications;

3. Supplier engagement with consultations (within objectivity principle).

2. New flexibilities within Directive: 1. Innovation Partnerships (AB to elaborate).

2. Competitive Procedure with negotiation.

3. Preamble emphasis on distinctions from PP (note: State Aid rules relevant):1. “Mere financing” e.g. grants; community support.

2. Authorising/licensing compliant suppliers to consumers;

3. Compulsory social services – non-economic services of general interest.

4. “Freedom of national/regional/local Authorities to define, commission, finance Services of General Economic Interest” (EU Treaty Art 14 Protocol 26).

4. Pre-Commercial Procurement: 1. 2007 EC Communication – “…Driving innovation to ensure sustainable

high quality public services”.

2. Pre-PP stages: research; solution exploration; prototyping; test/pilot services.

3. Risk/benefit sharing.

4. Directive says “co-financing research and development should be encouraged”; PP does not apply to co-financing.

5. Innovative reorganisation/development of public service markets/pilots/collaborations may, properly analysed, be pre-PP activities.

5. Joint-ventures & rational investment1. Commercial co-production/collaborative engagement/investment.

2. Distinguish from commissioning/procurement/contracting services - (AB to elaborate).

6. Frameworks allow engagements within framework rules1. An original procurement establishes suppliers which may supply under

call-off contracts within scheme.

2. May be limited (non-procurement) further competition between framework suppliers.

7. “Teckal” development companies within public sector1. Authority subsidiaries may supply to Authorities within the public sector.

2. Allows new service development with later spin-out/co-investment possibility (but not as pre-determined intention).

Julian BlakeCo-head Charity & Social EnterpriseBates Wells Braithwaite

8th July 2014