# 2 Procurement and commissioning

What is it?
Innovation can either be encouraged through building requirements into procurement criteria, or allowing the flexibility for potential contractors to suggest their own ideas.

How could I use it?
Procurement processes in local government are driven towards value for money, but, in the same way that quality considerations can be taken into account, procurement frameworks can also be used to ensure that contractors are making the most of innovation opportunities. For example, authorities have set criteria for contractors to:
•    develop and trial new ideas
•    ensure suppliers involve users in service design
•    promote employee wellbeing.

Where has it been used?
1.    Extending procurement criteria
When procuring a service for window cleaning of housing stock Sheffield Homes built in a requirement to involve users, which has led to a number of innovations in the way the service is delivered.

2.    Private Finance Initiatives (PFIs) and innovation
Private Finance Initiatives (PFIs) have also helped create the conditions where more innovative products are generated. For example, Building Schools for the Future aims to generate new infrastructure, financed and designed innovatively, eg. for more flexible use by the community.

More information?
•    Office of Government Commerce – including guidance, policy and standards framework, opportunities to collaborate with other public bodies and opportunities for peer review.
•    Procurement packs from 4ps, including model contracts, training and case studies  
•    PFI guidance by HM Treasury
•    IDeA guidance on procurement