The case for commissioning and procurement transformation in English local government
There have been unprecedented cuts in public service expenditure which means organisations have to become smarter in commissioning, procuring and then managing the resultant contracts. This Insight gives CFOs the questions to ask to ensure successful procurement processes are in place.
Public services are undergoing radical change, not least in English local government which has seen unprecedented reductions in expenditure.
These changes include the way in which bodies commission and deliver services, in particular the nature of the providers that are selected and the way outcomes and expectations are managed. These changes are often made in a climate of rising demand for services but with far less resources to meet it. This means that organisations have to become smarter in the way they commission, procure and then manage the resultant contracts.
As well as the financial case, third party organisations, including social enterprises, employee owned mutuals, small and medium sized enterprises and the voluntary sector, are an integral part of service delivery. We need to think ‘public money’ and not just ‘public sector’. Well controlled and organised contract and relationship management is essential to ensure we get the right outcomes, contain or reduce costs and avoid failure.