Consortia Managing Agent Model

1. Consortia Managing Agent Model Chris Luty Director

2. Background • Established in 2001 as a Not For Profit Company Limited by Guarantee • Based in the Black Country, but works with Partner Providers both Regionally and Nationally • Track record of successfully securing and managing contracts via Partners – approx £40M secured in WM since 2007 including • ESF £7.5M • SFA Employer Responsive £27.5M • Local Authority £2M • Commercial/Private Sector £2.2M • All BCTG’s delivery is via Partner Providers – We do not Direct Deliver

3. Our Starting Point • Our Key Principles are: • To invest time, money and effort into supporting, developing and working with our Partner Providers • We believe that if we do this successfully we will both reap the rewards • And that success will help bring stability and opportunity

4. Key Features of the BCTG Model • Consortia management is our Core Business • So our sole interest is making the Consortia a success • No direct delivery – therefore BCTG doesn't compete with its Partners • BCTG is Not For Profit – therefore does not aim to make large surplus’s • We reinvest into supporting and developing the Consortia • BCTG is a Back Office Service, we want our Partners to; • Retain their own identity, marketing and branding • Keep their own employers, learners and customer goodwill • BCTG aims to mirror SFA requirements without adding unnecessary bureaucracy

5. BCTG’s Track Record • Since 2007 BCTG and its partners have delivered LSC/SFA programmes worth around £40M to over 22,000 learners, and work with 1900 employers. • BCTG currently operates a consortia of 45 Providers delivering Employer Responsive and ESF Programmes • Success Rates for 2009/10; • Employer Responsive – 89% Overall/80% Timely • NEET Programmes – 108% Starts 74% Positive Progression • ESF Workforce Development – 100% Overall/90% Timely • Skills for Life – 93% Overall/87% Timely • BCTG’s track record has helped develop a strong relationship with both SFA and YPLA Regionally.

6. Some Of Our Added Value • Regular Support & Guidance – provided by BCTG Contract Managers working exclusively with Partners • Claims Support Team – dedicated Admin team provides data entry and claims validation for Partners, dramatically reducing Partner admin costs • Business Development Managers to identify and win new business for delivery by Consortia • Funded Capacity Building for Partners including; • Staff CPD, including accredited qualifications • Quality Consultant Support funded by Consortia • Support for Admin staff to simplify claims process • Free support to develop key policies including • Safeguarding, Diversity, Employer Engagement, Business Strategy • Employer Promotion & Marketing Activity – telemarketing, mail/email-shots, lead generation included in support package

7. Some Of Our Added Value • The Apprenticeship Works • BCTG operates a ATA which Provides Free Vacancy Search & Select for Partners – usually £250 Finders Fee Per vacancy • Learner IAG – Matrix Accredited , dedicated Officers provide independent learner support • Optional Standardised Paperwork – can help streamline processes, and reduce Partner admin burden • Securing Additional Funds - Between 2008-10 BCTG won around £400K of support to capacity build the Consortia – such as E-Learning, VLE, Flexibility Innovation Funding, Subject Learning Coach Support, WCS, Peer Review etc. • A central point of contact for funding policy and regulations– if we don’t know we find out!

8. Minimising Partner Risk • BCTG’s Systems and processes seek to reflect SFA Audit & Compliance requirements – providing transparency • This has achieved Unqualified PFA Audit Outcomes over the last five years for both Core and ESF programmes– minimizing the risk of Audit Claw Back for Partners • BCTG’s is rated as having Good Financial Processes and financial stability against Framework for Excellence – with no borrowings or loan debt to service • Annual Negotiated Rolling Contracts – ensures that neither part is locked into unworkable arrangements

9. Partner Involvement • Critical Friends Group • A consultative group of representative Consortia Members • A management board to help develop policy, QI, systems & processes • Regular Partner Meetings • Act as both a communication forum and an opportunity for Partners to raise issues • Automatic Member Opt-in • All Partners are automatically included all appropriate New Activity/Bidding – individual organisations free to opt out

10. Financial • Regular Payments • BCTG makes payments to Partners currently on 23rd of each month – ensuring their cash flow • Validated Payments • BCTG agrees each months Claim payment in advance against Profile – Partners know what to expect and when to expect it! • Assured Payments • BCTG underwrites each months claim – ensuring Partners receive payment for validated claims regardless of BCTG data submission errors or other issues

11. Management Charges • Tapered Fees – BCTG recognise different Providers need different levels of support and service - this would be reflected in individual rates. • This enables fees to be set within the 10-14% Range for 16-18 Apprenticeship Programmes • Its expected that the average fee would be around 12% for 16-18 provision • At least 1% of Annual Management Fee to be pooled for collaborative Consortia initiatives such as; • Employer Marketing, New Business Generation • Learner Engagement Events (e.g. The Real Apprentice Events) • Fee Offsetting – BCTG holds its own ER Contract and would aim to off set some/all initial Management Fees by an increased Partner MCV

12. Next Steps • BCTG are keen to establish an initial dialogue with potential Partners over the coming weeks • Non committal, confidential one-one exploratory discussions • Need to ensure that any Partnership is in the interests of both parties • Contact • Chris Luty (chris.luty@bctg.org.uk) or 0121 544 6455