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

1. 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

2. 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’

3. Establishment of a special purpose vehicle – a new organisation through which to bid and contract with commissioners

Commissioner

Consortium Member 1Lead Agency

Consortium Member 2

Consortium Member 3

Consortium Member 4

Sub-contract

Sub-contract

Sub-contract

Consortium Agreement

Contract

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

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

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

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

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