must everything be procured?

Must everything be procured?

Oes raid caffael popeth?Gareth Coles – WCVA

1. Context2. Procurement – issues and

opportunities3. Grants – use and benefits4. Discussion

What we’ll cover

Context

• From grants to contracts• Reduction in third sector contract income • Diminishing budgets • Larger, regional, more generic contracts

...What role for the third sector in public service design and delivery?

The third sector and public service delivery

Welsh Government recognises “the crucial role the third sector plays in sustaining a just, inclusive and responsible society, including their role as service providers to the public sector”

Putting people at the centre

The way forward for public service partners in Wales:

• Engagement• Prevention and early intervention• Seeking alternative models• Scrutiny

Terminology

Commissioning – planning and delivery cycle, from analysis of needs, through planning and securing services, to review.

Procurement – the acquisition of goods and services from third party suppliers under legally binding contractual terms.

Commissioning

“Realistically social care markets will continue to combine a balance of services which may be delivered internally by the local authority or secured externally through grants or via a procurement exercise. Local authorities should consider the potential benefits and risks of the options available and have a clear decision-making process for deciding when to use the different approaches.”

Procurement – the legal position

Public Procurement Rules: • Directive 2004/18/EC• Public Contracts Regulations 2006• UK and European Court case lawTreaty on the Functioning of the European UnionA public body’s Standing Financial Instructions

Procurement – moves to improve

• Community Benefits• Wales Procurement Policy Statement• Joint bidding guidance • New EU Procurement Directives • Lower value contracts

Grants

A grant is a financial payment given by the funding body to the recipient either generally or in connection with specific activities that the recipient undertakes. The recipient of a grant many only use the grant monies received for the specific purposes for which they have been made available.

Grants – benefits

• Collaboration• Efficiency• Innovation• Social benefit• Strategic investment• Additional contributions

Grants or contracts – criteria

• Legislation – powers, best value, State Aid, Public Procurement Rules

• Policy – internal, local, regional, national

• Internal requirements – financial instructions

• Objectives

Investing locally

• Strategic use of grants

• Community benefits

• Transfer of assets

• Opening up low value opportunities

• Bidding support for local organisations

Opportunities?

• Commissioning? • Greater take up of community benefits?• New EU Procurement Directive?• Standing Financial Instructions?• Future Generations Bill? • Cross-sectoral working? • Co-production?• Others?

Thank you

Diolch yn fawr

Gareth Coles 02920 431 771 gcoles@wcva.org.uk