From competition to collaboration in the public prime market

The public services market has changed radically in the last 10 years, with an increasing emphasis on payment by results (PbR) contracts. It is an attractive model to government, however it can be a challenge for social enterprises and charities – who form the backbone of a prime contractor’s supply chain – as they require relatively high levels of working capital.

Our partner was seeking a way to build the resilience of their social sector suppliers but was unsure on the best method to do so. We ran a workshop to help them explore how social investment could work for them.

In the process of this workshop, our client discovered that a social impact bond held the potential to provide working capital for their suppliers as well as investing in preventative rather than reactive models of care.

We’re currently carrying out a more detailed feasibility study of the viability of this model for our client in the education sector. If successful, our partner will substantially improve the quality of its supply chain while tackling social problems at their root cause.

Photo by Aaron Burden