Consortium

A consortium is a group of two or more organizations that agree to cooperate on a project, often with the aim of sharing the resources and expertise needed to complete it. In the context of procurement, a consortium is often used to bid for contracts that are too large or complex for any one organization to handle alone.

The members of a consortium can be companies, nonprofit organizations, or even government agencies. Consortiums can be formed for a variety of reasons, but they are most commonly used when multiple organizations have complementary strengths that can be leveraged to complete a project more effectively than any one organization could on its own.

For example, a consortium might be formed to bid on a construction project that requires both architectural and engineering expertise. By teaming up, the member organizations can pool their resources and put forward a more competitive bid than they could make individually. Similarly, a consortium might be formed to develop a new product or service, with each member organization contributing its own area of expertise to the project.

There are many different types of consortiums, and the structure of each one will vary depending on the agreement between the member organizations. Some consortiums may have equal partners who share decision-making power equally, while others may have lead partners who take on a more managerial role. In some cases, members may contribute financial resources only, while in others they may also contribute personnel or other assets.