Project & Program Implementation

Alternative Services Delivery
Financial Management and Comptrollership
Organization Design and Development

Alternative Services Delivery

Alternative Services Delivery (ASD) is a management tool available to organizations in all sectors that seek to improve service levels,to reduce costs, to obtain strategic or comparative advantage, to become more cost-effective, to achieve results and outcomes, and to implement internal cultural changes. They are looking increasingly at the comparative cost advantages of engaging third party organizations to deliver services or to carry out operational functions and activities. Third party entities can comprise any combination of non-government and community based organizations, non-profit organizations, the private and institutional sectors. In addition, public sector organizations are increasing their ASD initiatives where partnerships between the public and private sectors can deliver a particular service.

ASD can be implemented in a number of forms, depending on the degree of control the organization would like to have over a particular service, the range and magnitude of 'core competencies' it might have, and the availability of other organizations that have the right capacities to support ASD.
The following chart illustrates some of the more common ASD modes or models:

Delivery Mode Alternative Service Delivery Options Examples
Public-Private Partnerships A relationship formed when a government and the private sector agree to work cooperatively toward shared or compatible objectives.The partnership is based on a formal agreement specifying its purpose and nature, and the terms and conditions governing it, such as financing, staffing and reporting. New highways, bridges, water systems, recreational facilities.
Contracting Out The transfer from government ownership and delivery to government purchase of the good or service from the private sector. Data processing, information systems, health care administration.
Contracting for Services Direct purchase of goods and services by the government from the private sector.This particular good or service was never delivered by government. Instead it was purchased. Food, laundry, janitorial services.
Franchising A right or privilege a government gives to an individual, firm or corporation to conduct a business or sell a product or service in accordance with prescribed terms and conditions set out by the government. Postal services
Licensing A government body grants a license to an individual, firm or corporation to provide the public a good or service for which there is a demand. Information dissemination
Government Owned and Contractor-operated (GOCO) A contractual arrangement that shifts responsibility from government to the private sector but not the ownership.It is sometimes used to increase use of a government facility or to commercialize technology. Some water systems, laboratories, technical centers.
Not-for-profit Organization A contractual arrangement where a not-for-profit body assumes responsibility for managing a public-sector enterprise, program, service or function on a commercial basis.The "profits" are usually returned to the enterprise for its development, but terms and conditions may require some of the earned revenues to be returned to the government. Some airport authorities, ambulance services.
For Profit Commercial Enterprise A contractual arrangement where a not-for-profit body assumes responsibility for managing a public-sector enterprise, program, service or function on a commercial basis.The "profits" are usually returned to the enterprise for its development, but terms and conditions may require some of the earned revenues to be returned to the government. Airlines, railway projects, toll roads, airport terminals
Special operating agency (SOA) An operational unit of a government department that has been designated as an SOA.It operates within the departmental legislative framework and budget policies, and is accountable to a Minister and a deputy head.A framework document and business plan establish accountability.These agencies promote a more businesslike approach within the departmental context.They have tailored authorities and flexibility delegated from the department and the government. Passport operations, government communications and publishing, post-education facilities

FMP supports clients in planning and implementing the various modes for alternative services delivery. Our focus is to assist clients in the planning, management and control of ASD initiatives. Our specific services cover:

Strategy Development and Planning:
Methodology development and adaptation
Problem definition and needs analysis
Concept and business case development
Demand and market assessments
Competitor / systems assessments
Policy analysis
Make-or-buy and most-efficient-organization assessment

Implementation Support:
Cost-benefit analysis and business case preparation
Legal framework assessments
Project/program formulation, evaluation and monitoring
Performance assessment and measurement
Workforce adjustment
RFP and bid document preparation
Contract negotiation
Supplier analysis, selection and evaluations

Organizational Development:
Accountability and performance management structures
Human resources planning (re-deployment, re-training, etc.)
Organizational impact assessments and planning

Stakeholder Relations:
Community / stakeholder analysis
Management of public inputs
Media and labor relations

Selected FMP Experience:
Canadian Clients
Business case and risk assessment for the ASD of the departmental IT function (CH02)
RFP preparation and management of a major outsourcing initiative (CH03,04)
Business case analysis and evaluation of an IT outsourcing agreement (CMC18)
Outsourcing study and strategy for a program service (DOJ06)
Evaluation of outsourcing options for a public program (DOJ09)
In-sourcing cost efficiency study for facilities management (DOT20)
Partnership opportunity study and privatisation analysis for R-2000 Program (EMR05)
Outsourcing Business Case - Electronic Procurement and Settlement System (GSC02)
RFP for supply arrangements for consumer services business (GSC03)
Business case for outsourcing of the desktop functions (RCCE02, 04, 05)
Development of contracting strategy for a major ASD procurement (OMBS01)

International Experience
Eritrea: Business plan for setting up a special services agency (UN036)
Turkmenistan: Support to the national privatization program (UN064)
Viet Nam: Support to development of valuation methods related to privatization (UN082)
Cambodia: Development of partnerships strategy for aid coordination (UN107)


FMP/Flaman Management Partners Ltd-Ottawa,Canada
FMP International -Toronto Canada
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