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Forward Commitment Procurement: Stimulate sustainable innovation in your supply chain


Innovation will be the key to some of the biggest challenges facing our society - climate change, energy and resource efficiency, waste and water management, social and economic sustainability - to name just a few.

The Public Sector urgently needs better, cost effective solutions to meet these challenges and make sustainable development a reality. Yet the products and services required to deliver what is really needed are often not available, are too expensive, or are seen as too risky. 

To move forward we need to unlock this stalemate: Forward Commitment Procurement (FCP) is a mechanism that does just that. It harnesses the power of public procurement to translate sustainable development ambitions and policies into affordable and effective solutions on the ground.

DIUS is inviting expressions of interest from procurement and policy professionals in the public sector who would like to develop flagship FCP projects and make a real contribution to sustainability, while gaining valuable FCP experience and know-how in the process.

The Competition

The aim of the Innovation for Sustainability Competition is to increase awareness and access to this valuable tool and support a select number of innovative flagship projects that can be picked up and replicated across the public sector.

The winners of the competition will receive the resources and know-how to implement an ‘Innovation for Sustainability’ FCP project and develop in-house FCP capability. Access to funding streams for technical support and lead market deployment will also be provided.

To participate simply submit a general expression of interest. The DIUS FCP Team will then get in touch to discuss ideas, introduce the FCP approach and help you to submit an Innovation for Sustainability proposal. Click here to download an expression of interest form. Please submit Expressions of Interest by 30th January 2009. A second deadline will be announced in February, but as this is a rolling programme and there are a limited number of places, early submission is recommended. 

Sustainability is no longer a peripheral issue for the public sector, and the pressures to deliver significant improvements in sustainability and environmental performance are increasing.  Yet the products and services to deliver what is really needed are often not available, are too expensive, or are seen as too risky.  All too often this leads to compromise in the delivery of sustainable development, and ambitious plans struggle to be realised on the ground. This needs to change if society is to meet the challenges ahead.

Leadership and Innovation

This is a time when the public sector needs to rapidly adapt to increasing environmental pressures and find new ways to harness the best possible solutions.  Business as usual is not an option - innovation is needed to meet the challenges we face as a society; not just in terms of new products and services, but innovation in the way we go about delivering sustainable development on the ground. Above all this requires leadership and commitment; it also requires new tools and processes.

“Innovation will be the key to some of the biggest challenges facing our society, like global warming and sustainable development. We need use all the tools at our disposal to unlock solutions.” Innovation Nation Procuring Innovation

The Forward Commitment Procurement (FCP) model provides a practical and proven means to enable public sector organisations to stimulate and harness innovation for the public good and achieve a step change in environmental performance. It does this by transforming the market for innovative and sustainable solutions, making new and emerging solutions more affordable and widely available, and providing a way for the public sector to manage the risk of procuring innovative products and services. 

 “The challenge is to use public procurement and public services to lead the way, shape the market for innovative solutions and equip society to meet the challenges of the future.” Innovation Nation 

FCP in Practice: HMPS Zero Waste Mattress System

HMPS was buying around 60,000 foam mattresses and pillows and disposing of around 40,000 annually. The majority were sent to landfill with the remainder classed as clinical or hazardous waste, incurring high disposal costs. In short, the situation was costly and environmentally unsustainable, and out of step with HMPS sustainable development policies.

The situation required a radical rethink. Working closely with the FCP Project team, HMPS identified their requirement as a Zero Waste Prison Mattress System, and using the FCP model went about finding a solution. This led to consultation with market and a shift in the procurement approach.

HMPS are now in the final stages of the procurement process for a fully managed service.
“The response (of the supply chain) has been excellent and has confirmed the value of this novel approach.” Geoff Sykes, Head of National Procurement.

Outcomes? A zero waste mattress solution, sooner than expected and with significant cost savings.

- Highlighted by HM Treasury in ‘Transforming Government Procurement’ as an example of how innovation can be harnessed to improve services and value for money.
- Best practice case study in ‘Finding and Procuring Innovative Solutions, OGC/DIUS 2007’.

The winners of the competition will have access to step by step project support to take an FCP project through to its conclusion. A tailor made programme to transfer FCP know-how into the organisation will be available to enable the participating organisation to incorporate FCP into its delivery framework.

“The aim is not only to develop a portfolio of FCP projects driving innovative solutions that can be picked up by others, but also to create a broad base of public sector leaders and professionals who understand and can apply FCP approaches to deliver innovative solutions” Fergus Harradence, Deputy Director, Innovation Policy, DIUS. 
DIUS will help you to access funding for trials and lead market deployment. The programme will be tailor made with you to suit the needs of your organisation, according to the experience and expertise of staff involved and the nature of the project. 

What type of projects will be supported?

The theme of the 2009-2010 programme is ‘sustainability’ and projects can address social, economic or environmental sustainability issues or risks. The programme is not just concerned with technology; it can equally well deliver services and innovative business models. 

You may already have a good idea about the issue you want to tackle, the area of operations that needs to become more sustainable, or where you need to save money; but if not you can still submit an expression of interest and a member of the FCP Team will help you to identify a suitable project.

“You do not need to have a specific project in mind to submit an expression of interest– just an interest in finding out more, support of a senior manager and a desire to make a difference.” Fergus Harradence, Deputy Director, Innovation Policy, DIUS 

About Forward Commitment Procurement

Developed in partnership with the Office of Government Commerce and the industry led Environmental Innovations Advisory Group, the FCP is a means to enable the public sector to secure the environmental technologies and products it needs to achieve its sustainability targets, to deliver them in the required timeframe, and at an affordable price. It does this by providing a mechanism that enables procurers to provide sufficient incentive and momentum for suppliers to invest and deliver.

The FCP model was recommended by the Sustainable Procurement Task Force and subsequently highlighted in the Sustainable Procurement Action Plan as a tool that should be used more widely. The Commission on Environmental Markets and Economic Performance recommended the wider use of FCP to unlock private sector investment in innovative environmental solutions.

What will my organisation need to do?

Although FCP projects are a natural extension of the work of the organisation and staff involved, they do require an organisation to commit time and resource over a long period of time, usually 1-2 years.  In addition a critical feature of an FCP project is that it needs to be linked to procurement budget and a genuine intention to procure a solution that is capable of delivering the requirement.  

Projects will be evaluated by the FCP Project Board.  The most important criteria for selection are a demonstration of the leadership and commitment necessary to take the project through to its conclusion and the potential replicability of the project.

As FCP projects work best where there is: 

- A high level of leadership and staff commitment and full integration of the project in organisation 
- A genuine unmet need that current technology, products or commercial models cannot deliver and / or cannot be delivered affordably  
- A genuine commitment to procuring a solution 
- A credible procurement opportunity with a reasonable lead time 
- A potential for forward commitment of sufficient strength to generate the required market pull  
- A potential for replication and routes to wider markets, such as other public sector bodies, these are the features that the Project Board will be looking for in a proposal.

Who can enter the Competition?

FCP is a tool that is used by both policy and procurement professionals. FCP projects have been initiated and managed by Heads of Procurement, Senior Managers, Sustainability Officers, Energy Managers, Estate Managers, Supply Chain Managers, and Environmental Managers.  The programme is open to any Public Sector or Public Interest organisation, including Urban Regeneration Companies. 

Who should respond?

Anyone in a public sector organisation can apply. However, applications must be either from, or sponsored by, a senior manager.  

FCP in practice: A step change in energy efficiency in the NHS

The NHS is the largest public sector contributor to climate change, being responsible for 18 million tonnes of carbon dioxide annually. This, together with the impact that climate change will have on the health of the nation that the NHS serves, means the NHS is determined to be a leader in addressing climate change and improving the sustainability of its operations.  The NHS aims to exceed the Government’s target to reduce Carbon emissions by 60% by 2050.

To achieve this, the NHS is aware that this ambition must be translated into actions on the ground. In a pioneering project, the Rotherham NHS Foundation Trust, with the support of BERR and Department of Health, has taken the lead in launching the first FCP project in the NHS as part of their Future Wards major refurbishment programme.

The trust wants to achieve a step change in both the patient experience and efficiency and is using FCP to deliver “ultra efficient, smart lighting systems that can deliver economical carbon reductions while at the same time contributing to a pleasant and healthy environment for both patients and staff”.

“The project will enable the NHS to harness the benefits of innovative ultra energy efficient lighting technologies so we can deliver an improved patient experience, significant energy efficiency savings and, of course, best value” David Whitely, Chief Engineer at the Department of Health, and DIUS FCP Project Board Member

Contact the FCP Team for more information or to discuss your ideas: 
Gaynor Whyles on 01666 57 5353 or David Williams on 020 3300 8690 or email
FCP@dius.gsi.gov.uk.



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