Procurement

In the current climate developing negotiation and procurement skills in third sector and statutory organisations is essential if they are to work together to successfully deliver public services. The Finance Hub project undertaken by acevo will aim to increase understanding and skills in these areas by publishing briefings and running seminars regionally.

WHO?

Acevo and the DTA are undertaking a project commissioned by the Finance Hub. The Hub is responding to the need for a greater national picture of co-operation between statutory and voluntary agencies to promote and standardise funding advice. This includes building understanding of good practice, and ensuring that the need for services to the voluntary, community and social enterprise sector are aligned.

WHAT?

Improving the relationships between third sector organisations and statutory commissioners is widely regarded as the number one priority in order for the sector to be more effective in winning and delivering contracts. Improving the skills of third sector leaders in working with commissioners is vital in building these relationships.

Acevo will be publishing 4 briefings in the following areas:

  • Best practice in tendering/bidding
  • Best practice in impact reporting
  • Best practice in negotiation
  • VAT issues in establishing delivery partnerships and consortia

Seminars will be held following the publication of the briefings. They will be facilitated by experts in their field and will give third sector organisations and funding bodies the knowledge and skills to diversify their organisations income revenue. The seminars will also give them the opportunity to explore the sectors need for support and information in the 4 areas, comment on the briefings and discuss best practice.

WHO IS THIS FOR?

We will share the briefings with the organisations that participate in the seminars and with others. We think that the outcomes from this project will be of particular interest to:

Funding bodies
By enhancing their skills in procurement and negotiation funding bodies will learn how to work with the third sector in delivering first rate services.

Third Sector
In learning to manage these processes third sector organisations can benefit from growing and diversifying their income revenue.

Tendering and Bidding Briefing: Give your tender a winning chance (1023 KB, .pdf)

The Government recognises the significant role already played by third sector organisations in public services and is keen for this to grow. An action plan drawn up by the Cabinet Office in 2006 set out reforms to increase third sector involvement in public services.

Further policy papers have repeatedly highlighted the desirability of a greater third sector role. This will mean more services will be tendered. The need for third sector organisations to engage effectively in competitive tendering will only increase.

The briefing summarises the different kink of tendering processes and explains how best to manage each.

Impact Briefing: Putting impact at the heart of the tendering process (1727 KB, .pdf)

This briefing shows how to put outcomes and impact at the heart of tendering and commissioning for public services. By doing this, both third sector service providers and commissioners can meet the needs of people and communities more effectively. Service providers: if you follow the steps in Part I, you will have done a great deal of the work towards a complete process of Social Accounting, recording the outcomes and wider impact of your work. Commissioners: if you follow the steps in Part II, you will have moved a long way towards commissioning for outcomes and impact.

Negotiation Briefing: Effective negotiating to secure better outcomes (985 KB, .pdf)

The effectiveness of third sector organisations in winning contracts for
services, developing partnerships, or engaging agencies, can be enhanced by strengthening the negotiation skills of people who work for them.

Many third sector organisations find themselves in difficult negotiating positions. Some negotiating partners, such as local authorities or government departments, seem to hold all the negotiating power, and leave little room for discussion. Yet a few simple rules, applied to every negotiation, can dramatically improve the results you achieve. This briefing will help you to take a structured and methodical approach to negotiation, enable you to secure better outcomes for your organisation and those it serves.

This briefing will be an excellent practical guide for those who are new to negotiating, as well as a good refresher for the more experienced negotiator. The principles outlined will be helpful for negotiating with many different stakeholders in different situations and they are not set out to be prescriptive for any particular negotiating scenario.

VAT briefing: VAT made simple when working in partnership (1160 KB, .pdf)

There is a common misconception that charities and other third sector
organisations are exempt from VAT because they do not have to pay corporation tax on profits from their charitable activities. If commercial businesses work together to deliver a contract for a third party, they are obliged to charge each other VAT on the services and goods they provide and sell to each other. Third sector organisations that are not registered charities must pay tax as commercial businesses do.

Although charities enjoy some specific exemptions from charging and paying VAT, in general they must charge and pay VAT just like commercial businesses. So if two charities work together they too are caught by the same VAT rules as businesses.

This briefing explains the most important rules governing VAT on partnerships. It then explains how to make sure that your partnership operates within those rules.

Successful Procurement & Negotiation in the Third Sector: Final Report (97 KB, .pdf)

The final report encapsulates learning from the regional seminars, and makes recommendations for further improvements, with a focus on capacity-building schemes that could be taken forward by Capacitybuilders, hubs, or other national consortia.

Project delivery partners