commissioning and procurement plan slides 21 nov 2016
TRANSCRIPT
Commissioning and Procurement Plan Consultation Event
21 November 2016
Rachel Baillie, Assistant Director Inclusion, Commissioning and Procurement
Overview
• Welcome – tea/ coffee
• Overview of the Commissioning and Procurement Plan and our development themes
• Question and answer session
• Workshop on Social Value
• Workshop on market support
• Feedback and summary
• Evaluation form
Commissioning and Procurement Plan
Our Commissioning and Procurement Plan is about making sure that the goods, works and services that the Council buys each year – and how we go about buying them – offer the greatest possible contribution towards our Council priorities
• Fit for purpose (FFP)
• Tackling inequalities (TI)
• Decent neighbourhoods (DN)
• Working City (WC)
The Plan is underpinned by the 4 development themes in the coloured boxes opposite, and is ultimately aimed at generating value for city residents.
Social Value
Local MarketsDigital
Contract Management
Commissioning and
Procurement Plan
How Commissioning and Procurement works at the CouncilCommissioning and procurement are two sides of the same ‘value’ coin
• Commissioning involves strategic planning and analysis, stakeholder engagement, and developing a service model
• Procurement is the process of externally purchasing the service which has been designed during the commissioning stage. There a number of types of procurement arrangement which we will outline in the following slide
• Contract Management underpins this whole process, ensuring that contracts are working, delivering value for money and quality outcomes, while also acting as a feedback loop into future commissioning phases
Strategic Planning and
Commissioning for Social Value
• Strategic Analysis - including
market, needs, risk, gap and
resource
• Engagement
• Consultation on formed proposals
• Finalise commissioning model
Contract Management
• Confirm roles and reporting
methods/ frequency
• Scheduled quality and
performance data collection
• Contract risk assessment
• Active risk management
• User and stakeholder
intelligence gathering
Procurement
• Determine Procurement Route
Internal Gateways and Decision
Making
• Develop performance measures
• Advertise/ Negotiate Opportunity
• Evaluate
• Award Contract
When we use contracts and when we use grants• Contracts
All third party spend over £25,000 is managed by Commissioning and Procurement:
We must competitively tender for contracts in the open European market if the total value is above these thresholds:
• Goods and general services £164,176+
• Specific social services £589,148+
• Works £4,104,394+
Below these thresholds, we may chose to competitively procure or negotiate a contract, depending upon the specification requirements, and the market profile
• Grants• Funding provided under grant arrangements, as distinct from under contract, is a gift of funds for a specified purpose.
The specified activities are defined by the recipient in their application, rather than the funder. The assumption underlying a grant is that it is subsidising an activity that the funder considers necessary
• We have an annual grants programme, known as the Newcastle Fund, specifically for Voluntary Community Sector organisations
• These grants are opened to a bidding process each summer, and successful projects are covered by a grant agreement –similar to any other contract but proportionately applied
• In addition there are opportunities for organisations to bid for small grants via ward budgets
Social Value
• Social Value is value that accrues in our local communities,
normally categorised around economic, environmental, or social impact
• It is what city residents say is valuable to them, for example sustainable employment, a decent place to live, and equal access to a range of quality services in the local area
• As a public body we need to think about how we can secure wider social, economic and environmental benefits from the early commissioning stage
• In 2015, the Council collaboratively developed a Social Value Commitment with partners which set out 5 key principles…
Social ValueThink, Buy, Support Newcastle
Spending money locally generates value across our supply chain, and effectively delivers it to local people. For instance, research by the Federation of Small Businesses suggests that every £1 spent by a local authority with local Small and Medium Enterprises (SME) generated an additional 63p of benefit for the local economy.
Community Focussed
We will seek to understand and deliver value that local people recognise. We will not assume that we know what people in the City want, but instead, we will ensure that we have mechanisms in place for local people and partners to feedback to us on a regular basis and use this feedback to shape our practice
Ethical Leadership
Social Value is not just about CSR or legal obligations, but is integrally linked to our ethics and beliefs. We will therefore seek to work with businesses that employ high ethical standards within their practice, and those who want to work to improve their ethical approach.
Green andSustainable
As well as ensuring our own high performance in this area as part of our Climate Change Commitment , and our commitment to prepare for its impacts we will work with partners and providers to promote green and sustainable practice in the work that we commission and procure.
EnablingChange
Ensuring people understand not only our high level principles, but also what Social Value might look like in their context and what they might personally do to create it.
Social Value - Framework
• As part of our Commissioning and Procurement Plan, we have launched a new framework for ensuring that Social Value considerations are captured at the commissioning stage, and are used to influence the ultimate service design/ procurement
Key themes How the Council will respond
Where this will be incorporated into our process(Commissioning model, Service Design, Evaluation, Contract
Monitoring)
Think, Buy, Support Newcastle
Community Focussed
Ethical Leadership
Green and SustainableWe will try out
this framework in one of our
workshops later
Local Markets
• Part of our Social Value Commitment to invest locally is predicated on having a strong local marketplace
• We want our local markets to continue to innovate and grow• 63% of our spend is currently invested in the North East, and 43% of this is
within Newcastle• To maintain and build on this, we invest in a programme of procurement
support aimed at increasing the competitiveness of local organisations, including tender readiness via the NEPO Business Club https://www.nepo.org/suppliers
• We also host contract specific procurement support sessions where the market requires, and invest in infrastructure support specific to the Voluntary Community Sector provided by NCVS
Local Markets
• Types of procurement support available:
• NEPO Business Club – Includes business surgeries run by B2B North, procurement readiness, NEPO portal training, access to finance, and more
• NCVS – offers advice and support on bid writing, types of funding and organisational constitution for VCS organisations in the city
• Council – offers bespoke tender readiness sessions for specific contracts where there is an identified need in the market
• We want to review how this support is working, and get your
views on whether there are particular gaps and how they could best
be filled
We will have a workshop to explore these
questions later
Digital development
• For local markets to be able to help shape and plan for future funding opportunities with the Council, it is important that they get access to the right information at the right time
• Digital is an increasingly important part of how we communicate with you, and a whole range of other external stakeholders
• Our Council website and the NEPO tender portal are a key part of this, as well as our Let’s Talk site where will often consult on future plans
• We are working to improve our external web presence so that you have access to the information you need to actively engage with the Council’s Commissioning and Procurement process
• To do this, we need to get your views on how things currently work, and how they could be improved
• On the next slide, we have outlined what you can currently find online, and where
Where you can find information
• Commissioning and Procurement Plan and policy documents e.g. Social Value commitment
• Market Position Statements
• Provider protocols and quality monitoring information
• Commissioning Intentions, register of expiring contracts and quarterly contract awards
• Newcastle Fund
• Forward Plan, decisions, and live consultations (Let’s Talk)
NEPO Portal https://www.nepo.org/
• Live contract register
• Live contract opportunities
• Contract awards
• Market engagement events
• NEPO Business Club
We want to know what you thinkIs there information missing? If
so, what?Have you used our web pages before? How easy is it to find
what you need?Leave us your comments on the
flipchart
Council Website https://www.newcastle.gov.uk/business/tenders-contracts-and-procurement
Contract management
• Once a provider is successful in gaining a contract, contract
management is critical to making sure that it is delivering value
for money, and that requirements are being met
• It is also an important part of the contractor/ provider relationship
• We are developing a new contract management toolkit which will apply to all Council contracts
• The toolkit will introduce a new risk-based methodology for identifying a proportionate contract management approach on a contract by contract basis
• The toolkit will clarify our approach to determining the frequency and intensity of contract management, and set a consistent approach for making contract management roles and responsibilities clear at the start of each contract
Contract management
• We will be launching the toolkit by the end of March 2017, and welcome your views on
proportionality
• A separate Newcastle Fund monitoring review is also underway as part of the Newcastle Fund review
Annual performance information
Provider meeting by exception
Managed in line with JCT/ NEC
requirements for works that are
deemed to be minor
Provider meeting by exception
Annual performance information
Provider meeting by exception
6 monthly performance information
At least 1 desktop review over the life
of the contract for contracts of 2+
years
Provider meeting by exception
Managed in line with JCT/ NEC
requirements for works that are
deemed to be intermediate
Provider meeting by exception
6 monthly performance information
At least 1 desktop review over the life
of the contract for contracts of 2+
years
Provider meeting by exception
3 monthly performance information
Annual desktop review and/or sample
check as appropriate
Provider meeting by exception
Managed in line with JCT/ NEC
requirements for works that are
deemed to be major
Provider meeting by exception
3 monthly performance information
Annual desktop review and/or sample
check as appropriate
Annual quality monitoring and
verification visit
Provider meeting by exception
Low
Medium
High
Goods Works Services
Please leave your comments on the
Contract Management
Table
How we will measure success• To make sure that all of this development work is having a positive impact, we have launched a
new set of performance measures to help us understand our impact and performance
• These measures will tell us more about how we are delivering against the themes below
• You will be able to track progress on our Council website
Are providers delivering in line
with performance indicators?
Are providers achieving or
exceeding our quality
expectations?
Are stakeholders
actively involved in
design, delivery and
management of our contracts?
How well is our SVOI process delivering the
Council’s Social Value
Commitment?
How well are our
Commissioning and
procurement processes
fulfilling our commitments
under the Voluntary
Sector Compact?
Is our local marketplace
becoming more procurement
ready?
Are we fulfilling our
management obligations?
Provider Performance
Stakeholder Involvement
Social Value
Voluntary Sector
Local Markets
Management
Workshop 1: Social Value
In groups, work through the Social Value framework in relation to the following illustrative example…
Example - Family Support Services (1/2)
• The Council are seeking to procure a 5 year contract for Family Support Services
• Family Support Services is made up of three main components: • Community Family Hub • Citywide Family Support• Targeted Services – Youth Support
• It includes a range of services to be delivered in partnership such as: Early Help, Sure Start, Parenting Programmes, Training and Support
• There is a budget envelope of approximately £5m
Workshop 1: Social Value
Example - Family Support Services (2/2)
Required service elements:
• Targeted Sure Start offer for approximately 10,000 children under 5 across eligible areas of the city
• Intensive whole family working for families with additional needs – c. 202 families at any one time
• Family Support volunteers for approximately 150 families at any one time
Structure:
• The contract should be within 3 geographical locations: West, Central and East
Workshop 1: Social ValueInformation is on your tables – in your group, work through the following questions:
Think, buy, support Newcastle
• What benefits would arise if a local organisation was delivering in response to Family Services? • How will local people benefit (including but not only service/end users – think about the broader community who may
experience employment, environmental and social benefits)?• What associated opportunities exist to pull down other funding and resources into the city or specific communities? • What whole system benefits do we expect to accrue as a result of Family Services, and who will benefit from these? If
there are multiple choices, how would we prioritise among them?
Community Focused
• What geographic or community boundary options are there within Family Services that could influence Social Value?• Are there any potential community impacts that we should particularly guard against in relation to Family Services?
Green and Sustainable
What environmental sustainability issues exist within Family Services, for example:• Relating to service users or customers?• Relating to staff who will be directly employed in relation to the opportunity?• Relating to the whole supply chain?• Relating to the community as a whole?
Ethical Leadership
What ethical issues exist within Family Services, for example:• Relating to service users or customers?• Relating to staff who will be directly employed in relation to the opportunity?• Relating to the whole supply chain?• Relating to the community as a whole?
Workshop 2: Market support
In groups work through the following questions:• Were you aware of the market support currently available?• Have you ever accessed any of the support?
• If yes, was it useful? Could it have been improved?• If no, is this because you didn’t know about it, or because the support on offer didn’t
seem to fit your needs?
• If we could support you in just one Commissioning and Procurement area, what would it be?
• What is your preferred way to get market support? E.g. events, online factsheets, peer support networks?
• Can you point to any areas of best practice that you have seen elsewhere that you would like us to learn from?
Thank you!
Contacts• Rachel Baillie – Assistant Director, Inclusion Commissioning and
Procurement [email protected]• Laura Choake – Commissioning Programme Manager
Links• Council Commissioning and Procurement pages
https://www.newcastle.gov.uk/business/tenders-contracts-and-procurement
• NEPO portal https://www.nepo.org/• NEPO Business Club https://www.nepo.org/suppliers