Why a company structure and not a federation?
The consortium working group spent a lot of time evaluating a full range of options for the consortium model and operating structure. It was deemed important that organisations had the opportunity to bid for contracts and manage them as a consortium, rather than bidding separately as members of a loose, confederated structure, as this aligns best with key trends within the current operating environment – commissioners wanting to achieve efficiency savings, fewer and larger contracts etc.
To be able to do this, the consortium needed to have a legal identity for bidding and contract management purposes. This could have been achieved through an existing legally constituted organisation functioning as the consortium lead body, but that would have entailed that organisation taking on a lot of risk and responsibility and correspondingly wanting to benefit from a good share of any contract income in return.
Instead, the working group opted for setting up a new company that could be jointly owned by the consortium members and where risk and reward could therefore be shared on a fairer and more equitable basis.