Neil Coulson

Drivers Shift away from grant aid towards contracting Aggregation - larger and larger contracts More business-like approaches Joined up working – whole person agenda

Different Contracting Forms Provider Managing Agent Managing Provider ‘Super Provider’

Provider Contractor ProviderProvision 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/Provider Contract top slice Percentage of contract to pay for management of sub-contractors:  Performance  Quality  Financial management

‘Super Provider’ Provider

How does it work? Incorporation to form new legal entity Providers become members of this company Hub and spokes operating model

Hub & Spokes Hub Provider

What does the hub do? Tenders Manages contracts Sub-contracts Monitors performance Safeguards quality across the network Builds capacity of members

Contracting & Sub-Contracting Hub:  Shapes tender frameworks  Identifies tender opportunities  Submits tenders  Awards sub-contracts –Joint Delivery Planning –Open and competitive sub-tendering

Intermediary infrastructure Commissioning/procurement bodies Contracting Infrastructure/Hub Frontline service providers

Hub as internal mechanism Member Hub Board

2 Tier Governance Structure Board of Directors Council of Members

Clusters  Certain consortium members group together around a specialism  Joint working  Focusing on innovation at the frontline  Dynamism

How is the hub paid for? Seed corn funding at the outset Contract top slice ultimately – agreed by membership

Future Builders Consortia Fund Minimum investment of £50k Mixture of grant and loan Capacity to win contracts

Membership eligibility criteria Sheffield Well-Being Consortium: Sector (not-for-profit) Provision of health and well being services Addressing disadvantage and vulnerability Area of operation Information management capability Minimum threshold for quality assurance

Minimum threshold for Quality Assurance Adherence to an externally recognised and validated Quality Assurance (QA) system, or in the process of adopting such a system Commitment to Continuous Professional Development and Improvement

Process Steering group Seed corn/set up funding 3 Year Strategic/Business Plan Membership Prospectus Membership recruitment Incorporation Grant aid/investment finance for ‘baseline’ hub? Win tenders Deliver

Benefits Scale Efficiency gains Negotiating power Joined up working Innovation Capacity building

Issues & Risks SET UP From ‘culture of entitlement’ to social enterprise - change management ‘Defensive’ or ‘market intensive’ Who leads? Procrastination – ‘analysis paralysis’ Inclusivity v pragmatism Reaching critical mass

Issues & Risks…cont DELIVERY ‘Tail wags the dog’ New object of dependency Money without management ‘Arm’ of the procurement bodies (‘over- mainstreaming’) v not procurement-ready Conflicts of interest/internal competition ‘Ensuring contestability’

Achievements To Date Became operational in October 2008 Future Builders investment - £155k Contracts - £400k Preferred supplier - £400k 46 members

Neil Coulson tel