The Rep Birmingham 30 January 2008 Supporting People Seminar

Capacity building for small SP providers Alan Cripps neadonconsulting ltd Background CLG – concern about impact on small providers of:- –Concentration of the market –Spread of procurement approach SITRA – specialist technical resource agency for providers and commissioners HACT – Housing Associations Charitable Trust. A history of working to support small providers

Capacity building for small SP providers Alan Cripps neadonconsulting ltd The Programme CLG – follow-up to Value Improvement Programmes – a series of good practice resources for commissioners SITRA – “A Provider’s Guide To Procurement” and a series of training events HACT – Capacity-building pilot programme to:- –Explore a range of ways in which small providers can maintain a place in the market –Work with 6 projects providing a budget and facilitation support –Evaluate, write up, produce materials and disseminate

Capacity building for small SP providers Alan Cripps neadonconsulting ltd The pilots – where? Durham Liverpool Redbridge Rotherham Southend Suffolk

Capacity building for small SP providers Alan Cripps neadonconsulting ltd The pilots – a typology Large provider with one small specialist subcontractor Six characters in search of a lead agency A coalition of sub-contractors Conventional “lead agency” consortium Bidding vehicle

Capacity building for small SP providers Alan Cripps neadonconsulting ltd The pilots – where they are at present LSP – Main contract already awarded – discussions about terms of sub-contract and start-up costs. “Six Characters” – Discussions with two possible lead agencies – both RSLs Coalition – Three potential partners lined up – awaiting release of tender documents; developing common infrastructure systems Consortia – one has won 6 contracts; the other has successfully passed PQQ stage Bidding vehicle – Independent Local Services launched November 07 – working on detail; awaiting details of Framework Agreement and tender documentation

Capacity building for small SP providers Alan Cripps neadonconsulting ltd Key themes 1- establishing the group Who’s in and who’s out? –What are you looking for – specialisms, capacity, infrastructure, local presence/reputation, quality? –How big is the pot, and what is commissioner looking for? –How strong is the commitment to collaboration? Trust, good personal relationships, transparency are essential – backed up by MOU, confidentiality agreement etc. External facilitation can help groups deal with potentially fissile issues

Capacity building for small SP providers Alan Cripps neadonconsulting ltd Key themes 2- Defining the USP Each group has to understand and communicate how it can add value Points to emphasise include:- –Connectedness –Ability to lever in resources –Strategic relevance Don’t rely on added value to make up for weaknesses in other areas

Capacity building for small SP providers Alan Cripps neadonconsulting ltd Key themes 3 – Role of commissioners Enabling small providers to remain part of the mix requires a proactive approach. Obvious barriers include bidding and organisational capacity Unintended barriers can include:- –Rules around access to Framework Agreements –The “20%” rule –Suspicion of consortium approach – cost and communications Is competitive tendering required? Creative use of waiver powers

Capacity building for small SP providers Alan Cripps neadonconsulting ltd Good practice in commissioning Analysis and understanding of the market Encouragement of collaborative approaches – workshops, capacity building Allow time for relationship building Helpline for small providers “Meet the partners” sessions Design of method statements and scoring frameworks Active management of sub-contracting Change management and exit strategies for unsuccessful tenderers

Capacity building for small SP providers Alan Cripps neadonconsulting ltd Good practice in bid assessment There’s a huge amount of variation Get the quality:price ratio right or go for fixed price Base bid documents on a vision of what a really good service would look like:- –Integrated into a wider network of provision –Able to mobilise resources within the community –Contributes to broader strategies – e.g. sustainable communities, crime and disorder reduction Ensure that items such as strategic relevance, partnership & joint working and added value are given a heavy weighting

Capacity building for small SP providers Alan Cripps neadonconsulting ltd Implications for small providers Bidding strategies –Go it alone and argue for a waiver –Gear up for tendering as a sole provider –Gear up for tendering as part of a consortium –Look for larger partners to sub-contract with All of these constitute high stakes gambles, with greatly increased uncertainty in funding and potential collateral damage. LAAs mean that there is a strategic choice between specialisation and integration into local service networks

Capacity building for small SP providers Alan Cripps neadonconsulting ltd Queries How replicable are these models? How do SP commissioners see their role in managing the market, and sustaining a competitive pool of providers? How can CLG/RIEPs promote good practice in commissioning/ procurement? Will LAAs work in favour of local providers, against unpopular groups, or both? Will LAAs lead to a longer term downward pressure on costs which will drive out small providers?