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Forward Commitment Procurement (FCP)

Fibre optic cables

What is FCP?

Forward Commitment Procurement is a procurement model, designed mainly for the public sector, which looks at purchasing from the outcome based specification need instead of purchasing for the immediate perceived need. It addresses the common stalemate where organisations require products or services that are either not available or are at excessive cost.

By using this model it alerts the market to the procurement need and offers to purchase the solution, if the needs are met, once they are available, at an agreed price and specification. This provides the market pull to create the conditions needed to deliver innovative, cost effective products and services and unlocks investment to deliver the requirement.

How does this model work?

The model is broken down into three key stages:

Identification – uncovering where new solutions are needed to solve problems, deliver policy outcomes, and more efficient and effective services.
Market Engagement - proactively engage with the market at an early stage to give potential suppliers advance notice of your requirements, gain feedback and support cross fertilisation across different supply chains.
Procurement - enter formal procurement in a way that supports innovation and enables the delivery of an optimal solution.

The BIS publication Forward Commitment Procurement - Practical Pathways to Buying Innovative Solutions (PDF, 156 Kb) takes you through each of the stages, from identification through to the completion a Forward Commitment Procurement project. The intended audience is principally public sector policy makers, those responsible for delivering these policies on the ground, and the professional procurer.

This publication also gives insights into the thinking behind the FCP approach and how the public sector can become effective supply chain managers, demanding from the market for ever better, more efficient solutions that serve the public good.

Forward Commitment Procurement Know How Programme

This is a 4 stage training programme on how to use the Forward Commitment Procurement Model. Please note these materials remain the property of BIS. They constitute part of a ‘learning by doing’ programme and are unsuitable for stand alone use. They must not be used or passed to other individuals or organisations without the express and written permission of BIS.

Where Next?

The Department is developing this procurement model for use across the public sector. We are also investigating how the model can work in partnership with the private sector.
BIS is coordinating the LCB-Healthcare project which is one of three European Public Procurement Networks that have been established under the EU Lead Market Initiative. The project aims to create a public procurement network that stimulates innovation for low carbon building solutions in the Health Service Sector

The LCB-Healthcare project has five main objectives:

Develop a sustainable, self-funding, trans-national network of public sector and related organisations
Undertake a series of activities that will stimulate demand for, and support procurement of, innovative solutions
Undertake at least one lead market demonstrator pilot in each of the four participating countries
Create a Low Carbon Buildings Hub for health care procurement professionals and the European supply chain
Disseminate the lessons to both the European health care sector and beyond to other public sector procurers

Further information can be found at LCB-Healthcare

History

The CEMEP (Commission on Environmental Markets and Economic Performance) report set out how Government could make the UK one of the best locations in the world to develop and introduce low-carbon and resource-efficient products, processes, services and business models. The Commission specifically emphasised the use of the Forward Commitment Procurement model.