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Consortium Approaches in the VCS

Consortium Approaches in the VCS. What is a Consortium?. ‘An association of two or more organisations with the objective of participating in a common activity or pooling their resources for achievement of a common goal’. Consortium models.

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Consortium Approaches in the VCS

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  1. Consortium Approaches in the VCS

  2. What is a Consortium? ‘An association of two or more organisations with the objective of participating in a common activity or pooling their resources for achievement of a common goal’

  3. Consortium models • Large organisation acts as lead contractor and sub-contracts to a number of smaller organisations, providing a shared infrastructure of information management and quality control • A group of organisations varying in sizes in which one takes on the lead agency role and sub-contracts to partners. There is an additional layer of governance set out in a ‘Consortium Agreement’ • Establishment of a special purpose vehicle – a new organisation through which to bid and contract with commissioners

  4. Commissioner Contract Consortium Member 1 Lead Agency Sub-contract Sub-contract Sub-contract Consortium Member 2 Consortium Member 4 Consortium Member 3 Consortium Agreement

  5. Advantages • Greater strategic capability • Improved negotiating power and funding prospects • Synergies – new and better services, more effective service delivery, learning from each other, sharing good practice • Establish a more rounded and credible bid • Create a vehicle for future collaborative bids • Quality improvements • Image and profile

  6. Disadvantages • Hard work • Building a partnership • Developing a coherent service model and a successful bid • Capacity and resources – often tight timetable • High risk – one-shot option

  7. Choosing your partners • Quality and credibility • Strengths from a commissioning perspective • Standards and reputation • Need to be able to move fast, take decisions quickly • Some will be left out – implications • Consider what compromises may be needed

  8. Compatibility - criteria to consider • Quality • Information management capability • Business viability • Added value • Bottom line • Differences – how to address • Different levels of membership?

  9. Developing a partnership culture • Memorandum of understanding – incorporating ground rules • Exclusivity agreement • Confidentiality agreement • Discussion about sharing risks and liabilities, and how to achieve this • Consider financial levy • Develop knowledge – benchmarking, policy and procedure reviews, structures, quality standards, bid portfolio

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