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Consortia: way forward or waste of time is the main topic of this presentation. ACEVO and Neil Coulson Associates discuss. Find out more about the Evolve conference: http://www.ncvo.org.uk/training-and-events/evolve-conference
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Consortia: way forward or waste of time?
ACEVO &
Neil Coulson Associates
Why consortia?
Barriers Facing Small Organisations
• The procurement process (long, complex, expensive)
• Unable to find out about opportunities
• Contracts are too big
• Frameworks (if too complex and too large)
Barriers…cont
• Pre-qualification
• Understanding the requirements (anachronisms used, poorly worded specifications)
• Lack of feedback
• Cashflow
Consortia – overcoming barriers
• Scale
• Development of specialist tendering and contract management infrastructure
• Greater bargaining power
• Adding value at the frontline
• Building capacity
Key Trends Part 1 (deficit reduction and heightened competition)
• Deficit reduction
• New forms of private sector competition
• New forms of social economy competition through ‘externalisation’ of public sector human resources
Key Trends Part 2 (changing dynamics)
• Radically changing dynamics within the commissioning arena
• The ‘more for less’ agenda – downward pressure on unit price and greater focus on outcomes
• Reduction of ‘transaction costs’ through aggregation (joint commissioning, bundling) -> devolved commissioning
Key Trends Part 3 (political reform)
• Big Society – shift from state to non-state provision
• Modernising Commissioning• Localism Act (inc. Community Right to
Challenge)• Social Value Act• Personalisation
-> Growth of voluntary sector consortia, management companies, special purpose vehicles
Different Contracting Forms
• Provider
• Managing Agent
• Managing Provider
• ‘Super Provider’
Provider
Contractor
Provider Provision of Services
Managing Agent
Contractor
Managing Agent
Sub-contractors Provision of Services
Managing Provider
Contractor
Managing Provider Provision of Services
Sub-contractors Provision of Services
Managing Agent/ProviderContract top slice
Percentage of contract to pay formanagement of sub-contractors:
Performance Quality Financial management
‘Super Provider’
Provider Provider
Provider Provider
Provider Provider
aka Formal Consortium
Collaboration Spectrum
Networks/ Loose consortia Formal consortia Mergers
Partnerships
How does it work?
• Incorporation to form new legal entity
• Providers become members of this company
• Hub and spokes operating model
Hub & Spokes operating model
Ownership & Management Structure
Social ownership
• Owned and controlled by the members
• 2 tier governance:
Council of MembersBoard
Some Examples
• Sheffield Well-Being Consortium
• Wakefield District Well-Being Consortium
• Desta
• C3C
• Greater Together
• Synergy
Challenges
• Building trust
• Managing conflicts of interest
• QA and accountability
• Measuring social return
• Access to capital
• ‘Investment readiness’
Critical Success Factors
Demand side
• Commissioner Commitment
• Commissioners’ Attitude to Change & Risk
• Market Opportunities
Critical Success Factors…cont
Supply Side
• From culture of entitlement to culture of enterprise
• Leadership, business skills and entrepreneurial acumen
• Long-term vision
• Resilience
http://consortiasupport.org.uk/