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Introduction: commissioning, procurement and providers

This document highlights the challenges faced by councils in understanding the costs and value of social care services. It emphasizes a risk in over-focusing on cost reduction during service procurement. Councils are urged to grasp the financial implications of their commissioning decisions on providers. Relevant legislation, such as the Public Bodies (Joint Working)(Scotland) Act 2014 and the Children and Young People (Scotland) Act 2014, outlines requirements for strategic planning in social care. Additionally, the Procurement Reform (Scotland) Bill addresses exemptions for care and health contracts from competitive requirements.

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Introduction: commissioning, procurement and providers

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  1. Introduction: commissioning, procurement and providers Nigel HendersonCCPS Convener

  2. Audit Scotland 2012 • “Councils…do not have a full understanding of how much social care services cost and their value for money.” • “There is a risk that councils focus too much on reducing costs when procuring services...” • Councils need to “understand the financial and business impact of their commissioning decisions on providers.”

  3. New legislation Public Bodies (Joint Working) (Scotland) Act 2014 Section 23: Requirement to prepare strategic plan Children and Young People (Scotland) Act 2014 Section 8: Requirement to prepare children’s services plan Procurement Reform (Scotland) Bill • Care and health contracts exempted from requirement to compete • Statutory guidance to be issued on health and care procurement

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