Is Commissioning Different from Procurement?

Abstract

The English National Health Service (NHS) provides strong arguments on the debatearound commissioning public services. The proponents of commissioning view it as a broad, distinctand strategic cycle of activities where procurement is just one small facet. The essence of theirargument is that commissioning has become necessary in recognition of the limitation of traditionalpurchase and procurement in public organizations. Commissioning is, therefore, essentially needbasedand decentralized. On the other hand, the proponents of procurement argue that commissioningis just a different way of calling what in essence is strategic procurement. Commissioning activitiesare, in one way or the other, intended to strategically acquire appropriate types of services for theorganization. Social organization can and does draw on examples of successful strategic procurementin commercial organizations. To avoid any unintended consequences such debate might cause and toprovide meaning, direction and purpose to the function of commissioning, it is useful to be explicitand define the concepts at some point in the early phases of the initiative.