1. New Ways of Delivering Services: Consortium Formation Neil Coulson

2. 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

3. 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

4. Key Trends Part 3 (political reform) Big Society – shift from state to non-state provision (White Paper, Localism Bill etc) Personalisation Local level - LCC commissioning framework Growth of voluntary sector consortia, management companies, special purpose vehicles

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

6. Provider Contractor ProviderProvision of Services

7. Managing Agent Contractor Managing Agent Sub-contractors Provision of Services

8. Managing Provider Contractor Managing Provider Provision of Services Sub-contractors Provision of Services

9. Managing Agent/Provider Contract top slice Percentage of contract to pay for management of sub-contractors:  Performance  Quality  Financial management

10. ‘Super Provider’ Provider

11. aka Formal Consortium Collaboration Spectrum Networks/ Loose consortia Formal consortiaMergers Partnerships

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

13. Hub & Spokes operating model

14. Ownership & Management Structure

15. Social ownership Owned and controlled by the members 2 tier governance:  Council of Members  Board

16. Examples VC Train  Established 2000/operational 2002  120 members  c. £30m Sheffield Well-Being Consortium  Established 2007/operational 2008  62 members  c. £1m

17. Here2Help (H2H) Coventry VCS Consortium ‘Pipelining’ as well as competitive tendering Involvement in all aspects of the commissioning cycle – co-design through to allocation of resources ‘Co-commissioning’ through collegiate board structure

18. Membership eligibility criteria Universal criteria –Sector (not-for-profit organisations and social enterprises) –Provision of services for the vulnerable and hard-to-reach –Area of operation –Commitment to consortium working –Commitment to sharing expertise via a time bank

19. Contract-Readiness Criteria –Financial health –Quality systems –Suitable organisational policies –Suitable governance –Technical capacity

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

21. Challenges ‘Procurement-readiness’ - meeting the PQQ thresholds (especially smaller providers) QA and accountability Conflicts of interest Ensuring contestability Measuring social return

22. Critical Success Factors From culture of entitlement to culture of enterprise Business skills and entrepreneurial acumen Long-term vision Tenacity

23. Process Consortium working group Seed corn/set up funding 3 Year Strategic/Business Plan Membership Prospectus Membership recruitment Incorporation (creation of interim board) Grant aid/investment finance for ‘baseline’ hub? Win tenders Deliver

24. Partnership agreement How the collaborators inter-relate Building block for formalisation Ultimately sits alongside Mem & Arts

25. What might the consortium look like? Children and young people Lancashire wide Internal clusters  Locality-based  Thematic/community of interest-based Membership-owned and controlled