Background information
Public procurement has become increasingly important in society in recent decades, with the public sector increasingly putting parts of its activities out to competition. The background is to achieve the same quality at a lower price through market forces; according to the Local Government Act, activities must be conducted according to the principle of the lowest possible cost to citizens.
At the same time, uncertain developments in the world around us are placing ever greater demands on Sweden's military and civilian defense. Total defense needs to be adapted to meet the new challenges in a changing world. Within civil defense, the regions' activities, including health care, are a priority because of the major consequences that shortcomings in crisis preparedness can have for society.
Challenge
Region Gävleborg commissioned Sirona to evaluate whether outsourcing is still considered the best way to conduct procured activities in 1) Public transport, 2) Property management and services, 3) Cleaning and 4) Restaurant and food service.
The assignment involved conducting a short- and long-term impact analysis of a transition to a solution with internal delivery, known as backsourcing. The consequences to be analyzed were mainly financial (short and long term costs), organizational (impact on management and governance, skills supply, allocation possibilities, and capacity management) and crisis preparedness.
Implementation
With the help of regional representatives, overall data on contractual terms, costs, assets and staffing needs were collected for each area of operation. For a more detailed understanding of current crisis preparedness, focus interviews were also carried out with the respective business areas, as well as with the region's security and emergency management department. The focus interviews identified experience in crisis management, crisis management structures and key functions critical to the function. In addition to analyzing the region's contracts, costs and experiences, analyses of previous research and relevant documents and guidelines from authorities such as MSB and the Public Procurement Authority were carried out.
Outcome
The study found that backsourcing has mainly negative consequences, including increased costs and loss of the economies of scale often offered by external suppliers. Overall, it recommended continued outsourcing together with a review of contractual terms related to crisis preparedness, such as requirements for active prevention, stockpiling and force majeure conditions.
Want to know more?
If you want to know more about how Sirona worked on the assignment, contact Marit Vaagen.
"We hired Sirona for a complex assignment that several other consultants had considered too difficult. Sirona worked consistently based on its methodology, but was also responsive to our views and other influencing factors. This enabled them to produce a clear analysis and relevant proposals that we can use to strengthen our robustness."
- Johan Sørensson, Staff Director Region Gävleborg
