Models for collaborative working around commissioning

What role are you going to take?

Taking time to create a culture of partnership is a key to successful collaboration. It helps to resolve many of the issue that can later make collaborative working difficult, allows you to work out what roles partners will take and what formal legal form the consortium will adopt.

In this section we set out the models commonly adopted by community and voluntary organisations working together collaboratively. There are also some case studies and specimen documents.

In legal and contractual terms there appear to be three main options and an number of innovative and unusual models:

New independent body - a consortium where a new independent body (a jointly-owned separate organisation) is set up.
Lead agency - a consortium where one partner is the lead agency (holds the contract with the commissioner and is the accountable body) and sub-contracts with the other partners. With this type of consortium there is an overarching agreement between all the partners and some form of steering group to oversee it.
Sub-contracting - a sub-contracting arrangement where one agency holds the contract with the commissioner and sub-contracts to other service providers.
Innovative and unusual models - here you will find some other examples of community brokerage and collaboration to inspire you.

New independent body

In this model, partners create a new legal entity. Although the new entity will not have a track record, all of the risks associated with delivery are transferred to the new body.

In delivering contracts it is clear where the legal responsibilities lie and there is no need for a lead body. However, developing a new body will require resource and there is a risk that it will end up competing for funds against the partner organisations.

The Zone, Plymouth

This is an example of how this model is working in practice.

The Zone_Case_Study.pdf

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Lead agency

In this model, the lead agency holds the main contract and is ultimately accountable, and sub-contracts are put in place with each consortium partner.

The overarching consortium agreement will set out how members will work together, including decision-making, and management of risks and responsibilities, along with a number of schedules or sub-contracts for the parts of the service delivered by consortium members.

In deciding upon the lead agency, partners should choose an organisation that has the capacity and ability to handle a contract management role from among themselves. Practically the lead agency will:

Be legally and contractually responsible for the services provided by the consortium
Receive payments and provide monitoring information to commissioners and make payments to the partners
Check the quality of the contracted services
Participate in any contract reviews

The lead agency can either be a consortium member and deliver services or just take a managing and coordinating role. In either case, the cost of this work must be accounted for in the consortium's budget. In the latter case there may be implications for VAT liability.

Barton Hill Settlement

Barton Hill Settlement provides services, facilities, and community development to the communities of Barton Hill and surrounding areas of East Bristol. In collaborating for commissioning with smaller community organisations, they tend to take the lead partner role.

Barton_Hill_Settlement_Case_Study.pdf

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Sub-contracting

In this model, one provider is awarded the contract and then sub-contracts a range of services (with agreement from the commissioner) to other providers.

The sub-contractual model allows organisations to work together on the basis of their strengths, expertise and diversity. The main contract is generally held by an organisation with the capacity and ability to manage the contract and a range of sub-contractual relationships. As with the consortium model, the main contractor may also provide frontline services or may only provide management and coordination services.

This sub-contracting relationship is not collaboration in the same way as a consortium. Practically, the main contractor holds a greater balance of power and the sub-contracting organisations need to be pragmatic about equality as the main contractor will also have to manage much of the risk.

The key contract provisions in sub-contracts include:

Duration of contract
Respective responsibilities
Payments and charges
Insurance
Confidentiality
Assignment

Termination
Variation
Breach
Disputes
Copyright
Intellectual property rights

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Innovative and unusual models

Partnerships and collaborations may not always fall neatly into one of the above categories. Here you will find some other examples of community brokerage and collaboration to inspire you.

Secondments

For an example of a creative attempt to involve other organisations in delivering services, despite a statutory partner's rejection of collaborative models of tendering, have a look at what North Doncaster Development Trust is doing.

NDDT_Case_Study.pdf

Network of community facilitators

Birmingham Settlement has developed a community facilitators programme as a response to tackling community tensions in the area. It supports a network of community facilitators, providing an alternative community-led model for procurement.

Birmingham_Settlement_Case_Study.pdf

Community anchors

Community anchors can provide a link between statutory partners and smaller organisations in terms of opportunities to meet, and sharing of information. Aston Mansfield is committed to supporting smaller community organisations, and has a role as a convenor of workshops and gatherings of organisations around commissioning from the London Borough of Newham and Newham primary care trust.

Aston_Mansfield_Case_Study.pdf