2. You have to know languages when you go to sell
something…
but when you go to buy everyone does what he
must to understand you.”
Gabriel Garcia Marquez, Love in the time of
Cholera
3. What I’ll cover
• Context- the way value is dealt with in related
guidance, policy and law
• Range of approaches that public bodies are
taking to prepare for the Act
4. Key questions
• How far to go to consider how what is
proposed to be procured could promote SEE
wellbeing?
• How to consider- what information to draw
on?
• How far to go to act on that consideration?
6. Best Value Statutory Guidance
“to fulfil their Best Value Duty – authorities are
under a Duty to Consult representatives of a
wide range of local persons; this is not optional.
……………This should apply at all stages of the
commissioning cycle, including when
considering the decommissioning of services”
Department for Communities and Local
Government, 2011
7. Public Services (Social Value) Act
Goods Works Services
x x Pre-procurement consider how
the service can improve SEE
wellbeing.
x x Consider how to secure
improvement through
procurement process
x x Consider consulting on the above
two points.
8. Value for Money
• Optimum combination of (whole life) cost and
quality to meet user requirement
- HM Treasury
• Optimal use of resources to achieve the
intended outcomes
- National Audit Office
9. Responses to the Social Value Agenda
buy better
risk opportunity
change what
we buy
10. Responses to the Social Value Agenda
judgement
specific systemic
instruction
11. Guide to Commissioning for
Maximum Value
LGA and The SROI Network
http://www.thesroinetwor
k.org/publications/doc_det
ails/224-guide-to-
commissioning-for-
maximum-value
12. What is a “model for commissioning for
maximum value”?
• Based on principles of SROI applied at each
stage of a commissioning cycle.
• Flexible and supportive of professional
judgement.
• Start somewhere and build practice over time.
13. General Principles
• Involve stakeholders throughout commissioning
to inform professional judgement
• Understand desired, possible and actual change
• Value the things that matter in order to better
prioritise
• Include all relevant and significant issues
• Recognise your contribution as part of a system
14. A commissioning cycle
1. Initiate 2. Assess
commissioning needs
5. Monitor, evaluate, 3. Options appraisal and
performance manage service design
and review
4. Source
the solution
15. Points on commissioning cycle where
value should be considered
• Analyse- what are valid objectives, what is
valuable to pursue?
• Plan- which general approach leads to best
overall value?
• Do- which offer(s) represent(s) best value for
money (Most Economically Advantageous)?
• Review- what are the actual results?
16. A commissioning cycle
1. Initiate 2. Assess
needs
commissioning
5. Monitor, evaluate, 3. Options appraisal and
performance manage service design
and review
4. Source
the solution
17. 5 key messages
1. Initiating Commissioning
Be open to and seek new ideas and new problem
definitions.
18. A commissioning cycle
1. Initiate 2. Assess
commissioning
needs
5. Monitor, evaluate, 3. Options appraisal and
performance manage service design
and review
4. Source
the solution
19. 5 key messages
2. Assessing Need, Assets and Aspirations
Improve your understanding of causes and effects by
talking to stakeholders.
20. A commissioning cycle
1. Initiate 2. Assess
commissioning needs
3. Options
5. Monitor, evaluate, appraisal and
performance manage
and review service design
4. Source
the solution
21. 5 key messages
3. Options appraisal and service design
Forecast value and base your choice of options on an
assessment of value, not just costs.
22. A commissioning cycle
1. Initiate 2. Assess
commissioning needs
5. Monitor, evaluate, 3. Options appraisal and
performance manage service design
and review
4. Source
the
solution
23. 5 key messages
4. Source the solution
Use the assessment of how value may be created and
destroyed to decide how best to specify, judge bids and
manage performance.
24. But…. beware financial barriers and other
(inadvertent) exclusions
• Risk assessments and requirements
• Ability to finance
25. Sourcing- avoiding exclusion
Apply financial regulations flexibly
Use lots and the small lots concession if
necessary
Promote responsible supply chain initiatives
of prime contractors
Give suppliers warning and sufficient time to
respond
26. European Commission’s Proposal to
amend Procurement Directives
• Justification if not using lots!
• Price or MEAT to MEAT only
• Innovation partnerships
• Change to part A/B and thresholds
27. A commissioning cycle
1. Initiate 2. Assess
commissioning needs
5. Monitor,
evaluate,
3. Options appraisal and
performance service design
manage and
review
4. Source
the solution
28. 5 key messages
5. Monitor, evaluate, performance manage and
review
Carry out further stakeholder involvement and
analysis to understand and manage the value that’s
delivered.
29. Interesting responses
• Leicestershire CC- guidance
• Buckinghamshire CC - training
• LB Camden- building on outcomes based
commissioning
• LB Lambeth- co-operative council
• Gloucestershire JSNAA
