Choice, commissioning and contestability

As well as being ongoing challenges for those working in the public sector, choice, commissioning and contestability are also key elements of the current government’s model for public sector reform.  Taking them one by one:

Choice: this is a means of enabling users to shape the design, development and delivery of public services.  Choice can inform purchasers as to the needs and preferences of end users.  It can also be harnessed to drive up standards with providers being required to satisfy user needs in competition with other providers

Commissioning: increasingly the public sector no longer automatically acts as the provider of many of the services which have traditionally been delivered by the state, but commissions services from those best placed to provide them, whether these are from public, private or third sector entities.   Commissioning requires an effective separation between the purchaser and the provider of services and a capacity to undertake often complex procurement activities

Contestability: a contestable market is one in which competitive pricing exists, where there is actual and effective competition, or there is potential competition due to the existence of low barriers to entry to the market.  Contestability can be achieved within the public sector alone or via the introduction of competition from the private and third sectors.

These three issues are complex and interdependent.  Although these words are in everyday usage and are embedded in many areas of policy, in reality the practical aspects of exercising choice, ensuring that markets are contestable and efficient and undertaking commissioning are often poorly understood and executed.  Government needs to ensure that if value for money (in terms of desired outcomes as well as prices) is to be achieved by using market approaches, then these practical issues need to be fully understood and addressed.

PricewaterhouseCoopers understands these issues from a policy, procurement and economics perspective and is actively advising departments on these issues.  We have practical experience in the development of new markets in service delivery.  We can also help you understand these issues at a policy and a delivery level and apply these concepts to real world situations.  Our knowledge and insight is based on the practical implementation of these three major elements of the government’s approach to public sector delivery.