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 23 rd 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 6455chris.luty@bctg.org.uk