Navigating the maze of commissioning

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

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.Fairness 5.Accountability

The Open Public Services White Paper Recurring 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 Paper Recurring 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 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:

6 Monitor, review evaluate 1 Assessing need 2 Mapping existing services and identifying gaps 3 Planning to meet needs – identifying outcomes and resources 4 Sourcing services 5 Delivering services The commissioning cycle

6 Monitor, review evaluate 1 Assessing need 2 Mapping existing services and identifying gaps 3 Planning to meet needs – identifying outcomes and resources 4 Sourcing services 5 Delivering services The influencing cycle?