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Complex procurement processes hamper third sector in public service delivery – survey

Third sector organisations have to overcome complex procurement processes, over-zealous contract monitoring and half-hearted government backing in order to deliver public services, research by TPP Law has revealed.

The law firm polled 500 not-for-profit organisations, charities, infrastructure organisations, social enterprises and housing associations to gauge the current state of play.

Its report, Delivery of Public Services by the Third Sector, found that when it came to contract bidding, respondents faced disorganised commissioners, complex tender documents, excessive bid costs, the inability to achieve full cost recovery and unbalanced risk allocation and contracts.

The vast majority of respondents (71%) said the bidding process was not getting any easier either. Third sector organisations slammed it as “complex and bureaucratic”, with some preferring to channel resources into delivery.

Half of the respondents (49%) felt there was insufficient funding available to third sector organisations bidding for public services contracts. A number would like to bypass local funding agencies and deal with central government direct. In some cases, funding was felt to be too short term and encumbered by tough monitoring requirements.

The National Training Programme for Commissioners has failed to impress, with 44% of respondents being unaware of its existence – more robust promotion and backing from ministers is seen as key to its becoming more effective.

Among the wish-list for improvements, respondents want:

  • simplified bidding processes;
  • longer-term contracts;
  • increased targets for outsourcing to the third sector;
  • consistent commissioning across the public sector;
  • promotion of the benefits to communities of social enterprise;
  • a greater range of funding sources; and
  • more opportunity for smaller organisations, reducing the bias towards big players.

Mark Johnson, managing director of TPP Law, said “robust commitment” all round is needed now to yield success.

“For those with a glass half-full mindset, there are many positives to be drawn from our latest poll of third sector organisations,” he suggested. “An injection of confidence is needed to encourage longer-term planning and funding and smaller players need to find ways to collaborate to take advantage of bigger contracts.”