Commissioning and Procurement
Commissioning and Procurement seems to be on everybody’s agenda of late. This can be a complex and scary topic to many organisations, but it is something that we all need to consider.
With many local authorities moving away from traditional grant funding, organisations may find themselves competing for the funding that they may have been receiving for many years.
Increasingly the state is withdrawing from the direct delivery of many welfare functions it has previously undertaken. The Government is encouraging the greater use of voluntary and community sector organisations in the delivery of public services.
Contracts could enable VCOs to generate a surplus which can be used to fund other activities and/or contribute to the development of reserves.
Contract funding also enables VCOs to establish close working relationships with local statutory funders and services. This often ensues in longer term benefits for both parties and can be used as the springboard for further funding and service delivery development. A contract has the potential of increasing the possibility of a voluntary sector provider being regarded as an equal partner in the relationship.
The voluntary and community sector has a long tradition of meeting unmet needs in the community. As a result, it has accumulated a vast amount of information, understanding and expertise in the provision of many different services. We need to ensure that this is harnessed for the provision of public services in ways which enhance the lives of people who live, work, study and play in East London.
It has been suggested that contracting for the delivery of public services can compromise the values of the voluntary sector and to the development/widening of a two-tier sector. Some funders are aware of the need to provide grant-aid to organisations in order that activities other than contracted services can be provided and innovation encouraged.
The pressure on public sector organisations to commission services from Voluntary and Community Organisations [VCOs] has increased dramatically following the Treasury’s Cross Cutting Review in 2002. Also, the development of the Compact between Government and the VCS, and between the public sector and the VCS at a local level, has attempted to strengthen the relationship between the public and voluntary sectors and promote a mutual understanding and respect.
In this section we have gathered a number of useful documents to help you find your way through the Commissioning and Procurement maze. Please click on the revelant topic for further information.