Can you deliver public services?

Before considering selling to the public sector, voluntary and community organisations must have confidence in their ability to:

  • Compete with other organisations on the open market
  • Deliver services on time and to required standards
  • Have a sound financial and commercial reputation
  • Offer value for money

They must also consider the following points when deciding if public service delivery is for them:

Mission and objectives – does what you are proposing to deliver fit with your organisation’s mission, aims and objectives? Does the public sector organisation share the same vision and values? Delivering services outside this remit may have implications for your organisation. A balance needs to be struck between the potential contract and achieving your organisation’s mission and objectives.

Capacity to deliver – the public services that you may decide to deliver will be dependent on your capacity to deliver, your reputation, previous experience and current activities. Do you have the required systems, processes and skills to manage the contract process? Are you able to deliver this service better or more efficiently than the competition?

Organisational change – issues to consider include the impact on service users, staff and volunteers. Is your organisation ready to adopt new ways of working? Is there a need for additional training or recruitment of new staff. Delivering public services involves a high level of scrutiny and monitoring. Does your organisation have the policies and procedures in place to meet these requirements?

Impact on funding / VAT – are you able to generate an alternative source of income if a contract is suddenly terminated? There may also be tax and VAT implications to consider. As tax regulations change frequently it is important to always check the current position with your local HM Revenue & Customs office or visit their website for further information - www.hmrc.gov.uk

Legal issues – this is a complex area and it is essential to seek legal advice before embarking on delivering public services. For example, does your constitution or governing document allow you to deliver public services?