1.5 Describe how resources are commissioned or procured

This guide will help you answer 1.5 Describe how resources are commissioned or procured.

Commissioning and procurement are processes used to obtain the goods, services, and equipment needed in health and social care. These resources can include staff, medical supplies, food, cleaning materials, buildings, and specialist services. The aim is to make sure the right resources are available, at the right time, to deliver safe and effective care.

Commissioning is about planning and arranging services to meet people’s needs. Procurement is the practical act of buying or obtaining goods and services. Both processes involve careful checks to make sure purchases are legal, fair, and give good value for money.

Commissioning

Commissioning starts with identifying what is needed by people using a service. This might be regular care, special equipment, or new activities. Commissioners (such as local authorities, NHS bodies, or organisational managers) then plan how these needs will be met.

Steps in Commissioning

• Assessing needs: Commissioners study data, ask staff, service users and families, and review community trends to find out what is required.
• Setting priorities and outcomes: They decide what is most important and set clear aims for service quality, safety, and user experience.
• Developing a service specification: The commissioner describes exactly what is needed, including standards, expected results, and costs. A service specification acts as the framework for what will be delivered.
• Choosing providers: This might involve inviting care organisations to express interest, fill out applications, or compete through a tender process.
• Contracting: When a provider is selected, a contract is agreed. This sets out roles, responsibilities, funding, timescales, and monitoring arrangements.
• Monitoring and review: The commissioner checks whether the service achieves the outcomes set out in the contract. Feedback from users, families, and staff is often collected.

Commissioning includes both long-term and short-term contracts. It often focuses on value, safety, access, and making sure care meets legal requirements.

Procurement

Procurement is the actual process of buying goods and services needed in day-to-day running of services. This covers everything from bandages and cleaning supplies to beds and food, as well as ICT systems and buildings.

Steps in Procurement

• Identifying needs: Staff or managers work out what needs to be bought, how much, and by when. This often uses forecasting.
• Getting approvals: Purchases must be authorised within the organisation. This avoids waste, fraud, or unnecessary spending.
• Supplier selection: There may be preferred suppliers already approved by the organisation. Otherwise, comparisons can be made using catalogues, quotes, or online systems.
• Quotations and tenders: For larger purchases, organisations usually invite several suppliers to provide quotes or tender bids. This encourages fair pricing and ensures value.
• Evaluating suppliers: Organisations consider cost, quality, reliability, delivery times, and supplier reputation. Some suppliers are asked to prove they can meet care standards, offer safe products, and demonstrate ethical practices.
• Placing an order: Once a supplier is chosen, the organisation creates a formal purchase order with details of the products or services and payment terms.
• Receiving goods or services: Deliveries are checked against the order. Damaged or wrong items are reported and replaced.
• Payment: Invoices are checked and authorised before payment is made to the supplier.
• Recording and monitoring: All procurement actions are recorded to show compliance with procedures and financial controls. This supports audits and helps spot any problems.

Legal and Regulatory Frameworks

Procurement and commissioning in health and social care must comply with laws and regulations, such as:

• Public Contracts Regulations 2015: Sets rules for fair, open competition and value for public funds.
• Financial regulations: Organisations must follow their own and external rules for authorising and recording spending.
• Care Quality Commission (CQC) standards: Require that equipment and services used in care are safe, suitable, and meet users’ needs.
• Modern Slavery Act 2015: Organisations should check suppliers are not involved in exploitation or slavery.

By following these rules, organisations help prevent corruption, discrimination, and low standards.

Ethical Procurement

Ethical procurement means thinking about the social and environmental impact of purchasing decisions. For example:

• Choosing suppliers who pay fair wages
• Buying from companies that avoid child labour
• Purchasing environmentally friendly products

Many organisations have ethical procurement policies, supporting positive business practices.

Collaborative Procurement

Sometimes organisations join together to increase buying power—a practice known as collaborative procurement. For instance, several care homes might buy supplies in bulk to get better prices. The NHS commonly uses this method for medicines and equipment across Trusts.

Advantages are:

• Better prices through volume discounts
• Consistent standards across different services
• Reduced time spent organising separate orders

Emergency Procurement

Sometimes urgent needs arise, such as during an outbreak or building emergency. In these cases, procedures can be fast-tracked, but key rules about safety and value for money still apply. Managers may have extra authority to make urgent purchases without multiple quotes.

Digital Procurement Systems

Many large organisations use electronic procurement systems. These help with:

• Ordering online from approved suppliers
• Tracking shipments and deliveries
• Storing invoices and receipts
• Analysing spending patterns

Digital systems make it easier to follow policies and see which suppliers give the best service.

Involving Staff and Service Users

Both commissioning and procurement work best when staff and service users are involved. Frontline staff know what works and what does not. Service users may have preferences, such as types of food or equipment. Their feedback helps organisations choose the best resources to support care quality.

Examples of Commissioning and Procurement

Example 1: Commissioning a New Service
A local authority finds there is an increase in people living with dementia. Commissioners assess the need, write a service specification, and invite care providers to apply. The best provider is chosen, a contract is signed, and the new service is monitored for quality.

Example 2: Procuring Medical Supplies in a Care Home
A care home regularly orders gloves, aprons, and cleaning products from approved suppliers. For a new piece of equipment, several suppliers are asked for prices and delivery options. The manager selects the best offer based on quality and cost, then places an official order.

Example 3: Joint Procurement
Several supported living services work together to buy food and cleaning supplies in bulk. This cuts costs and means all services have consistent, reliable products.

Final Thoughts

Commissioning and procurement are structured processes used to get the resources needed for safe, effective care. Commissioning covers planning and setting up services to meet needs. Procurement is the act of buying goods and supplies, from everyday items to specialist services. Both are governed by legal, ethical, and organisational rules to support safety, quality, fairness, and value for money. Involving the right people, following clear steps, and monitoring results helps health and social care organisations manage resources well.