Coventry public health 13 APRIL 2017 NEIL COULSON amp JOHN GILLESPIE WELCOME amp INTRODUCTIONS programme Better understanding of commissioning process around public health contract Drivers for partnership working ID: 589598
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Slide1
Consortium learning EventCoventry public health
13 APRIL 2017
NEIL COULSON & JOHN GILLESPIESlide2
WELCOME & INTRODUCTIONSSlide3
programme
Better understanding of commissioning process around public health contract.
Drivers for partnership working
Types of ‘partnership/consortium arrangements’ & explaining terminology
Smaller Organisations
Contract Readiness
Getting a good dealArticulating unique offer
Larger Organisations
Supply Chain Management
Service Co-design Slide4
Clarifying ncvo’s role
The advice/guidance we are delivering is general best practice. We are NOT recommending a specific course of action in relation to this opportunity.
Guidance is developed from our extensive experience of working with VCS bidding partnerships across the country over the past 17 years
. Slide5
Contracts that lend themselves to partnership/consortium working
Large-scale
Focus on integrated working
Services that require holistic, end-to-end support
Whole system outcomesSlide6
Why consortia?
The procurement process (long, complex, expensive)
Unable to find out about opportunities
Contracts are too big
Frameworks (if too complex and too large)
Barriers Facing Small OrganisationsSlide7
Barriers…cont
Pre-qualification
Understanding the requirements (anachronisms used, poorly worded specifications)
Lack of feedback
Cashflow
(
SmallerSupplier
..Better Value?, OGC & Small Business Service, 2002)Slide8
Consortia – overcoming barriers
Scale
Development of specialist tendering and contract management infrastructure
Greater bargaining power
Adding value at the frontline
Building capacitySlide9
Examples
Children, Young People, Family focused
Contracts include: Engaging Vulnerable Adults (Public Health), IAG
j
oint commission from CCG and
BwD Council, Facilitating Access to Services (Public Health)Income year end 2016 = £631k
Families Health & Wellbeing Consortium (Blackburn)Slide10
Broad-based but primary focus on health & wellbeing
10%
topslice
– aspiration to move to no more than 5%
£1.38m income 112 members
Sheffield cubedSlide11
Leeds Advice Consortium
Leeds City Council £5m advice services contract
Won by Leeds Advice Consortium (Better Leeds Communities,
Chapeltown
and Harehills
CAB, and Leeds CAB)Slide12
Now split into 2 groups
Primes & larger organisations
that
might want to play a ‘significant’ partner role
.Smaller organisations whose
main focus is on becoming contract ready and making a successful approach to primesSlide13
Different Contracting Forms
Provider
Managing Agent
Managing Provider
‘Super Provider’Slide14
Provider Contractor
Provider
Provision of ServicesSlide15
Managing AgentContractor
Managing Agent
Sub-contractors
Provision of Services Slide16
Case Study: 3SC
7 organisations
LLP structure
Set up in 2009
Secured £36m through Future Jobs Fund
Almost 2,000 organisations
signed up
Won a number of Work Programme sub-contractsSlide17
Managing ProviderContractor
Managing Provider
Provision of Services
Sub-contractors Provision of Services Slide18
CASE STUDY
Loose consortium of c. 20 providers
Zest is managing provider
£2m of contracts for Positive Activities, Targeted Youth Support Services and work with NEETs
Sheffield cubedSlide19
Managing Agent/Provider
Contract top slice
Percentage of contract to pay for management of
sub-contractors’:
performance
qualityfinancial
managementSlide20
‘Super Provider’
Provider
Provider
Provider
Provider
Provider
ProviderSlide21
How does it work?
Incorporation to form new legal entity
Providers become members of the company
Hub and spokes operating modelSlide22
Hub & Spokes operating structureSlide23
Ownership & Management Structure
Board
Member
Member
MemberSlide24
Social ownership Owned and controlled by the members
2 tier
governance:
Council
of MembersBoardSlide25
Social ownership
Owned and controlled by the members
2 tier governance:
Council of Members
BoardSlide26
Here2Help (H2H) Coventry
Legal name “Voluntary Sector Consortium”
Deliver the
Healthwatch
contract through four of its members:
Voluntary Action CoventryCoventry CAB
Age UKCoventry Law CentreSlide27
For Larger OrganisationsSlide28
What good prime/sub arrangements look like
Importance of the role of small, grassroots providers within supply chains
Merlin Standard
Co-design of services
Balance of RiskSlide29
‘Small is Beautiful’
Shift towards prevention and early intervention
Growing focus on community self help and resilience, and on community-led solutions
Growing focus on community impact
Bottom up approaches delivered by small, grassroots organisationsSlide30
Types of Supply Chain Partners
End to End Call off/spot purchased Slide31
Merlin StandardDWP prime providers
Designed to encourage excellence in supply chain management by prime providers
Fair treatment of subcontractors
Development of healthy, high performing supply chainsSlide32
THE MERLIN PRINCIPLES4 Principles have been designed to explore key areas of the relationship between a Prime Contractor and its Supply Chain Partners:
1. Supply Chain Design
2. Commitment
3. Conduct
4. Review Slide33
Supply Chain Design
Supply chain is comprised of a varied mix of organisations that meet the needs of the commissioner/procurer
Encourages innovation and shared learning
Slide34
Commitment
Communication – open, honest, consistent
Co-design
Collaboration
Capacity building supply chain partners
Fair funding arrangements/allocation of market share
Transparency on management feesSlide35
Conduct
Governed by mutually agreed set of core principles – behaving with integrity
Proportionate Quality Assurance and Compliance systems and processes
Honouring Commitments
Clearly defined performance expectations and established processes to measure outcomes
Slide36
Review
Capturing and using feedback from all stakeholder groups
Annual continuous improvement plan
Impact and wider social valueSlide37
Service co-designKey principles and model behaviours:
Commitment to shared mission – better outcomes for service users (
Theory of Change
)
Anti-collusion
Openness, integrity and honestyConfidentiality/non-disclosureSlide38
Balance of RiskTraditional approach - risk transference -> blame culture
Alliancing – whole system outcomes
Shared risk and rewardSlide39
Action Planning timeNext StepsSlide40
Smaller OrganisationsSlide41
Knowing your value
What value do you add… Need strong value proposition/ & clear sense of impact
VCS organisations tend to be very impactful – but we are often poor at selling impact
What’s my uniqueness/ USPSlide42
Large Prime
People in Coventry
YOU
Black Box Exercise
42
Commercial masterclassSlide43
Getting the Best Deal
Exclusivity agreements (when to sign).
Mutual Non-Disclosure Agreements
– pros & cons of signing up. Due diligence on prime
Scrutinise proposed top-slice – what is it paying for; does it a) represent good value for money, and b) ensure robust contract management?
Check terms of sub-contract.Slide44
Prime Expectations
Able to bring insight and expertise
Evidence, competence, achievement and outcomes
Open, realistic and motivated
Commercially attuned
Able to help them to help you
Aligned governance/decision making
People who are easy to work withWHAT PRIMES WANT FROM SUB-CONTRACTORS44
Commercial masterclassSlide45
Contract Readiness Assessment
Financial health
Quality systems
Suitable organisational policies
Suitable governance
Technical capacity
[Check with Christina if we can get hold of a specimen PQQ from Coventry]Slide46
And under a ‘Light touch regime’?
With a light touch regime, you might have a completely different set of criteria – including social value?
e.g. < £75k, the likelihood is that a charity won’t have quality accreditation – because not cost effective, could this be subsumed under the standard of the Prime?Slide47
Open time
How to plug gaps in contract readiness – policies, turnover, financial health.
How to articulate unique offer
Flipchart (capture) – what are the main issues for your groupSlide48
Challenges
VCSE – challenge of ‘social bottom line’
‘Procurement-readiness’ - meeting the PQQ thresholds (especially smaller providers)
Measuring social returnSlide49
Critical Success Factors
From culture of
entitlement
to culture of
enterpriseEnlightened self interest
Long-term visionResilienceSlide50
THANK YOU - keep In touch
neil.coulson@ncvo.org.uk
John.Gillespie@ncvo.org.uk
Check out https://knowhownonprofit.org/funding/commissioning/consortia