Commissioning And Tendering Jargon Buster

1.

Which of the following best describes commissioning?

A.

The process of buying services to meet a need.
B.

The process of deciding what services are needed, acquiring them & ensuring they meet requirements.
C.

An organisation’s response to a requirement for a service.
D.

The new name for grants.

Correct Answer
B. The process of deciding what services are needed, acquiring them & ensuring they meet requirements.

Explanation
Commissioning describes the whole cycle of:
assessing the needs of a whole group of people;
· setting priorities and developing commissioning strategies to meet those needs in line with local and national targets;
· securing services from providers to meet those needs and targets;
· monitoring and evaluating outcomes;
· the above combined with an explicit requirement to consult and involve a range of stakeholders, patients/service users and carers in the process.

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2.

Which of the following best describes procurement?

A.

The process of buying services to meet a need.
B.

The process of deciding what services are needed, acquiring them & ensuring they meet requirements.
C.

An organisation’s response to a requirement for a service.
D.

The new name for grants.

Correct Answer
A. The process of buying services to meet a need.

Explanation
Procurement describes a very specific part of the commissioning cycle - the process of buying services.

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3.

Which of the following best describes tendering?

A.

The process of buying services to meet a need.
B.

The process of deciding what services are needed, acquiring them & ensuring they meet requirements.
C.

An organisation’s response to a requirement for a service.
D.

The new name for grants.

Correct Answer
C. An organisation’s response to a requirement for a service.

Explanation
When a service specification is issued by a local authority or primary care trust, organisations are invited to submit bids or 'tenders' which outline how that organisation proposes to deliver the service outlined in the service specification. This process is sometimes referred to as 'Competitive Tendering' because the organisations submitting tender are in competition with each other.

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4.

What does the acronym PQQ stand for?

A.

Post-Qualification Questionnaire
B.

Practice Quotation Questions
C.

Pre-Qualification Questionnaire
D.

Premium Quality Quotent

Correct Answer
C. Pre-Qualification Questionnaire

Explanation
Pre-qualification Questionnaires are used to vet organisations which are interested in tendering for a contract to deliver a service. They make sure the organisation has everything necessary in place to be able to competently deliver the contract, including minimum requirements for insurance, policies and procedures, and so on.

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5.

When might you be required to complete a PQQ?

A.

In answer to a contract specification.
B.

Once we've been selected to deliver a contract.
C.

Before being invited to tender for a contract.
D.

At any point - they're issued at random by the local authority.

Correct Answer
C. Before being invited to tender for a contract.

Explanation
Commissioning processes vary widely, and not all will require you to complete a PQQ. However, some commissioners, (the Learning and Skills Council, for example) require organisations to pass the PQQ stage before they are invited to tender for any contracts. The LSC's PQQ can be completed at any time, and successful organisations join a list of 'approved providers'. However, be warned that this list is frozen in the weeks preceding the issuing of a service specification, so it's important to make sure you've already done your PQQ.

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6.

Which of these tender would present 'value for money' in commissioning terms?

A.

The lowest-cost tender.
B.

The tender which balances quality provision with reasonable cost.
C.

The tender with the most added value.
D.

The tender from the organisation with the best track record.

Correct Answer
B. The tender which balances quality provision with reasonable cost.

Explanation
When commissioners assess tender documents, they are usually looking for a balance between quality and cost. These are usually scored or weighted - such as 60% of the score is on quality, whilst 40% is on cost. You should be made aware of this weighting before completing the tender document and proposed budget.

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