Navigating the maze of Navigating the maze of commissioningcommissioning

About NAVCA– National umbrella body of local support

organisations– Promoting voluntary & community action– 376 members – Specialist support on commissioning &

procurement– Work with members, govt. bodies & local

commissioners

Themes

• Since the coalition– Changes to

• What is commissioned• How it is commissioned

– Legislation, policy & economics• EU / National / Local

– How will you navigate these?

The how - Policy developments

Europe , a common complaint! – EC’s modernising procurement consultation – Proposal to apply specific lighter touch regime to social,

health and education services – Removal of Part A & Part B – Greater use of ‘life cycle costing’– Lots & Direct payment of subcontractors

http://www.navca.org.uk/modernising-eu-procurement-

Policy developments

Social Value – Treasury Green Book annex - Valuing Non-maket Impacts

– CLG Best Value Guidance• authorities should consider overall value, including economic, environmental and social value,

when reviewing service provision. • As a concept, social value is about seeking to maximise the additional benefit that can be created

by procuring or commissioning goods and services, above and beyond the benefit of merely the goods and services themselves

– Social Value Act• The authority must consider—

(a)how what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area, and(b)how, in conducting the process of procurement, it might act with a view to securing that improvement.

Policy developments– Social Value Act

"The opportunity that the Bill gives to us is to give as much credence to social value as to cost.. If we do not do this, then we end up knowing the cost of everything and the value of nothing."

Baroness Stedman-Scott.

"The Bill constitutes a good idea that has been given a few teeth. Whether those teeth are sharp enough, or the jaw that contains them is strong enough, we do not yet know. However, the Bill is a good start. We should see it as part of an ongoing process as opposed to an end in itself."

Lord Addington.

Policy developments

Open public services?

1.Choice and control 2.Decentralisation 3.Diversity 4.Fairness5.Accountability

The Open Public Services White PaperRecurring themes:

• Redefining the role of the state• Being 'sector neutral' • Decentralisation

– from central to local government – and local to neighbourhoods and individuals

• Personalisation and choice • Linking payments to results (PBR)

The Open Public Services White PaperRecurring themes:

• Competition as a default• Opening up more services to new providers • Encouraging communities and providers to innovate

and propose solutions• Targeting resources at the disadvantaged• Improving the use of data • Value for money

Implications of OPSWP

• Competition• New opportunities & new threats

– Right to challenge • Limited assistance to adapt• Handling data – see also http://www.contractsfinder.businesslink.gov.uk/

• New local structures• Payment by results & finding upfront investment• Sub-contracting with private sector ‘Prime Contractors’• Unknown quantities of demand

OPSWP 2012

• Update on progress– 8 areas trialling PBR for drug recovery – 6 cities trialling PBR to reduce reoffending – 27 local authorities trailing PBR for Sure Start children’s centres – 10 local authorise testing PBR for provision of support to vulnerable

adults – Prisons / adult mental health services / troubled families

• Consultation on Choice Frameworks and a new Right to Choice for certain services

The What – the reality

• Choice & Decentralisation– 73% felt

• service users have less choice• & decisions not being made more locally

• 41% expecting a reduction in staffing• 60% expecting to be more reliant on volunteers• Big impact on equalities & the excluded

Source: http://www.vsnw.org.uk/

6Monitor, review

evaluate

1Assessing

need

2Mapping existing

services and identifying gaps

3Planning to meet

needs – identifying

outcomes and resources

4Sourcing services

5Delivering

services

The commissioning cycle

6Monitor, review

evaluate

1Assessing

need

2Mapping existing

services and identifying gaps

3Planning to meet

needs – identifying

outcomes and resources

4Sourcing services

5Delivering

services

The influencing cycle?

John.dawson@navca.org.uk www.navca.org.uk/lcpu@lcpu