Definitions and Commissioning Cycle

What is commissioning?

Commissioning is a cycle that involves:

Assessment (or reassessment) of need
Identifying resources
Planning how to use the resources
Arranging service delivery through a procurement process
Monitoring and reviewing service delivery

The Commissioning Cycle can be represented using the diagram below.

Commissioning is 'the cycle of assessing the needs of people in an area, designing and then securing appropriate service.' (Cabinet Office (2006) Partnership in Public Services, p.4)

This emphasises the importance of first identifying and then meeting need. Commissioning should be a needs-led activity.

What is procurement?

Procurement is the buying aspect of service delivery. It is about implementing the commissioning requirements. It consists of:

purchasing — the process of securing or buying the services; and
contracting — the means by which the process is made legally binding.

“Commissioning is not the same as purchasing. Purchasing is a cash-driven exchange. The purchaser is only a customer. Commissioning is a needs-led activity. Agencies concerned with commissioning may be both customers and suppliers. Once needs are collectively identified, the means of meeting those needs through service provision are agreed and then how to access the resources, financial, staffing and premises necessary to deliver will be finalised. Thus an agency whether statutory, voluntary or private can be included in the commissioning function.” (Hearn, Abrahams & Pugh, 2003).

The eight principles of good commissioning

The Government has developed eight principles of good commissioning that specifically relate to voluntary and community sector organisations. These emphasise the idea that the voluntary and community sector should be engaged in every stage of the commissioning cycle.

Intelligent commissioning

The Audit Commission first introduced the idea of 'intelligent commissioning' in its report Hearts and Minds. This introduces a model of commissioning that should:

foster effective competition for public services
ensure that commissioners secure the benefits that voluntary organisations can bring to public service delivery.

They describe three elements to this:

commissioning user-focused, outcomes-based services
considering long-term impact on competition and contestability (the need to 'develop the market')
ensuring the most appropriate service provider is chosen.

World class commissioning

The NHS talks instead of 'world class commissioning' aimed at delivering outstanding performance in the way health and care services are commissioned, with a focus on a strategic, evidence-based and long-term approach.

They state that 'world class commissioners work collaboratively with community partners to commission services that optimise health gains and reductions in health inequalities'.