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Megan 's picture

Megan

Third Sector Foresight

Last night we were up in Doncaster with 12 chief officers and chairs of local infrastructure organisation. One of the discussions revolved around the implications and strategic actions that could flow from consideration of one key driver. The one that we discussed was described as “commissioning and procurement” (see drivers on this website on bringing markets into public services, increasing role of the sector in service delivery and procurement practice) and the related driver of polarisation of the sector.

The implications that were discussed included:
*Our members are finding it hard to navigate procurement and commissioning processes and some are losing out
*Our own organisations and our finances could be impacted
*Our members may need to consider collaboration or even merger, and we may need to support them with this

The potential strategic responses that arose included:
*Taking a strong leadership role locally advocating about how procurement and commissioning processes could be improved for our members
*Developing new/improved support to help our members compete and win contracts
*Developing new support around collaboration and merger
*What is our position on merger?

Our experiences in London totally mirror those Megan described in her post regarding the conversation in Doncaster.

A large majority of VCS training providers have been delivering public contracts to provide education, training & employment services to workless / under employed people for many years. Even organisations with a turnover in excess of £15m pa are struggling with the new procurement & commissioning processes around skills & employment.

I work for an infrastructure organisation for training providers in Central London where this year alone has seen two of our members wind-up & close down. The impact of the move towards larger contracts commissioned through e-sourcing arrangements is set to have a huge impact upon our particular sub-sector.

Collaboration is pretty much a given. Mergers will become a new hot topic & for the first time this year I have witnessed VCS organisations contracting with the private sector to deliver elements of these large public contracts.

If this approach works, the economies of scale it provides will no doubt be so enticing that this approach will have a more or less universal roll out across all service areas.

Campaigning, lobbying and the debate on this issue to one side; it is vital that we all recognise what is happening with the markets and plan and reposition our organisations accordingly

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