Commissioning Options Appraisal

Are you asking whether it’s better to have your waste management service provided by an external contractor or an in-house service provider? Are you simply looking to benchmark the value for money of your in-house service?

Whether you deliver waste services in house, through a private contractor, or through a local authority company, from time to time it’s important to consider whether an alternative approach could deliver better results.

  • If you have in-house service or a local authority trading company, you may want to test whether this service delivery model continues to offer the best value
  • If your service is contracted out, as the contract approaches expiry you may wish to determine whether re-tendering the service is the most favourable option

Whichever your current service delivery model, we can undertake an appraisal of all commissioning options to help you decide how your services should be delivered in the future.

Many authorities begin this process by reviewing the available option, chief among which are:

  • Outsourcing, whether through a fresh procurement to select an external contractor to deliver the services, or extending your current contract, if permissible
  • In-house delivery, using a workforce directly employed by your organisation
  • Using a local authority company, whether a new company you might look to establish, or an existing company founded by another organisation that you might join

We can also advise on less common options, including establishing a mutual and setting up a joint venture.

To provide you with a robust, thorough and valid appraisal that will stand up to scrutiny, our analysis is based on our heavily-tested proprietary models and tools, and an approach to evaluation that balances both financial and qualitative considerations.

As part of our advice, we will provide you with a bottom-up financial model, assuring you that all relevant cost components have been considered and assessed, including

  • Productivity
  • Labour costs
  • Workforce pension contributions
  • Corporate overheads and profit

The modelling will determine the total costs of each options, and the reasons why they vary. We can also flex the modelling to account for planned service design changes.

Our approach includes analysis of non-financial considerations that key decision-makers will also want to take into account. We can help you appraise each option against factors such as

  • Budget certainty
  • Risk transfer
  • Flexibility and control over service design
  • Operational risk appetite
  • Cultural fit

The implementation of any commissioning option can entail a major operational and cultural change across your organisation. To discuss how we can help ensure that it delivers the outcomes you need get in touch with our team.