Strategic framework launched to boost third sector bidding for council contracts

The government has launched a community enterprise strategic framework to help give third sector groups more “competitive clout” when bidding for council contracts.

At the same time the Communities Secretary, John Denham, called on councils not to overlook the skills and community benefits of the third sector.

He added: “In the quest for leaner, more efficient services, we still need to find ways for councils to take advantage of the positive social outcomes the third sector provides.”

The new framework was created in response to ministers’ concerns that many third sector organisations lack the technical skills or are too small scale to win contracts for council-run projects. It aims to provide more support, skills training and advice such as how to set up consortiums or franchises.

The framework is also intended to explore new ways in which third sector organisations can raise funds as they face a decline in philanthropic donations. These include community shares allowing people to raise funds to buy or maintain a stake in community services such as a pub or village shop.

The government is also piloting social impact bonds, which reward social investors for work which reduces future social costs.

The Communities Secretary said: “Councils and companies are short changing their communities socially if they don’t look beyond the price tag to deliver the current services at the lowest possible cost and consider the many additional benefits third sector providers can bring, such as jobs for the workless that can save even more money in the long run.”

The Department for Communities and Local Government is setting up a website with practical information on setting up and developing community enterprises.