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Consortia Managing Agent Model. Chris Luty Director. 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

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Consortia managing agent model

Consortia Managing Agent Model

Chris Luty



  • 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

Our starting point
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

Key features of the bctg model
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

Bctg s track record
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.

Some of our added value
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

Some of our added value1
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!

Minimising partner risk
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

Partner involvement
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


  • 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

Management charges
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

Next steps
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