An Introduction
In the public sector the process of 'commissioning' is often confused with the term 'procurement'. And while the two are intrinsically linked, they are distinctly different.
Commissioning is essentially a strategic process through which a council (or other commissioning body) decides what services it wants to see delivered to meet some identified outcomes, having carried out an assessment of local needs. The commissioning cycle includes all of the following elements:
- A strategic needs assessment.
- Deciding priorities and outcomes.
- Planning and designing services.
- Options appraisal.
- Sourcing or purchasing of services.
- Delivery of services.
- Monitoring and review.
In contrast, procurement is one of the ways of acquiring what is being commissioned and includes a process of contracting to secure the delivery of a specified service. As such, procurement starts with the commissioning cycle's 'options appraisal' phase, which decides, among other choices, the most appropriate funding approach for the services required.
Strategic commissioning will often result in the production of a ‘commissioning brief' which sets out for all interested parties (commissioners, partners, service providers and those likely to receive services) what is expected. By commissioning in this way, a council is able to specify what it wants to achieve by way of priorities and outcomes, leaving the procurement process to determine how services will deliver against this.