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Consortium
BY : MAHDI KHOBREH
What is Consortium
 A consortium is an association of two or
more individuals, companies, organizations or governments (or any combination
of these entities) with the objective of participating in a common activity or
pooling their resources for achieving a common goal.
Consortium is
a Latin word, meaning
"partnership",
"association" or
"society" and derives
from consors 'partner',
itself from con-
'together'
and sors 'fate',
meaning owner of
means or comrade.
Differences of JV and Consortium
 A joint venture (often abbreviated as JV) is an entity formed between two or more
parties to undertake economic activity together
 in a consortium, only the lead bidder's credentials both in terms of financial and
technical qualifications are considered by many clients whereas a JV can get by
with the technical and financial clout of its promoters
Differences of JV and Consortium
 if you have your pre-qualification criteria and project financing in your pocket, go
for a consortium to spread the risk and get value for money. A consortium is easy
to form and easy to execute
 If you have problems in pre-qualification or have doubts on whether you will be
able to finance your project; or if you have doubts on your capability to execute a
project in its entirety and want a niche partner to address certain areas; or you
want to enhance the solution with complementary services, a JV works wonders.
Areas of
Consortium
- EDUCATIONAL
- COMMERCIAL
- COOPETITION
- GOVERNMENT,
ACADEMIA & INDUSTRY
Education
The aforementioned Claremont Consortium (known as the Claremont Colleges)
consists of Pomona College, Claremont Graduate University, Scripps
College, Claremont McKenna College, Harvey Mudd College, Pitzer College, and Keck
Graduate Institute. These consortia have pooled the resources of their member
colleges and the universities to share human and material assets as well as to link
academic and administrative resources.
Appalachian College Association located in Richmond, Kentucky. The association
consists of 35 private liberal arts colleges and universities spread across the central
Appalachian mountains in Kentucky, North Carolina, Tennessee, Virginia, and West
Virginia. Collectively these higher education institutions serve approximately 42,500
students. Six research universities in the region (University of Kentucky, University of
North Carolina, University of Tennessee, West Virginia University, University of
Virginia, and Virginia Tech) are affiliated with the ACA.
Commercial
Hulu, the American video streaming service, is owned by a consortium of large
media conglomerates including Time Warner, 21st Century Fox, Comcast, and the
Walt Disney Company
Alyeska Pipeline Service Company, the company that built the Trans-Alaska Pipeline
System in the 1970s, initially was a consortium
of BP, ARCO, ConocoPhillips, Exxon, Mobil, Unocal, and Koch Alaska Pipeline
Company.
AirBus Example
Airbus Industries was formed in 1970 as a consortium of aerospace manufacturers. The retention of
production and engineering assets by the partner companies in effect made Airbus Industries a sales
and marketing company.[3] This arrangement led to inefficiencies due to the inherent conflicts of
interest that the four partner companies faced; they were both shareholders of, and subcontractors to,
the consortium. The companies collaborated on development of the Airbus range, but guarded the
financial details of their own production activities and sought to maximize the transfer prices of their
sub-assemblies.[4]
In 2001, EADS (created by the merger of French, German and Spanish Airbus partner companies)
and BAE Systems (the British partner company) transferred their Airbus production assets to a new
company, Airbus SAS. In return, they got 80% and 20% shares respectively. BAE would later sell its
share to EADS
Coopetition
Coopetition is a word coined from cooperation and competition. It is
used when companies otherwise competitors collaborate in a consortium
to cooperate on areas non-strategic for their core businesses. They
prefer to reduce their costs on these non-strategic areas and compete
on other areas where they can differentiate better
Coopetition Example
For example, the GENIVI Alliance is a not-for-profit consortium
between different car makers in order to ease building an in-
vehicle infotainment system.
Another example is the World Wide Web Consortium (W3C),
which is a consortium that standardizes web technologies
like HTML, XML and CSS
Government, academia & industry
The Institute for Food Safety and Health is a consortium consisting of the Illinois
Institute of Technology, the Food and Drug Administration's Center for Food Safety
and Applied Nutrition, and members of the food industry. Some of the work done
at the institute includes, "assessment and validation of new and novel food safety
and preservation technologies, processing and packaging systems, microbiological
and chemical methods, health promoting food components, and risk management
strategies
Government, academia & industry
Engineering, Procurement and Fabrication is jointly performed by SADRA-SAMSUNG
Consortium.
Installation and Commissioning is performed only by SADRA.
Fabrication is performed as the followings:
SPP1 (Production Platform) Topside: 6,000 ton (SADRA)
SPF1 and 2 Flares: 160 ton each (SADRA)
SPB1/2/3/4 Bridges: 400 ton each (SADRA)
SPQ1 (Living Quarter) Topside: 3,900 ton (SAFF)
SPD1 Topside: 950 ton (SAMSUNG)
SPD2 Topside: 1,350 ton (SAMSUNG)
Government, academia & industry
The CSR was established in May 2005 as a partnership between
industry-leading chip makers, tool suppliers, and university
researchers. It is a long-term joint R&D cooperative program on
future computer chip technology nodes. The CSR is the only center
within a university setting that provides the full vertical integration
of design, modeling, fabrication, testing, and pilot-prototyping
capabilities required to produce functional demonstrations of
semiconductor devices at the most aggressive technology nodes.
Industry partners within the CSR include IBM, Advanced Micro
Devices, SONY, Toshiba, Tokyo Electron, and Applied Materials
Agreement Sample
Thanks & Regards
University of Tehran
Mahdi Khobreh
Spring 2017

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Consortium

  • 2. What is Consortium  A consortium is an association of two or more individuals, companies, organizations or governments (or any combination of these entities) with the objective of participating in a common activity or pooling their resources for achieving a common goal.
  • 3. Consortium is a Latin word, meaning "partnership", "association" or "society" and derives from consors 'partner', itself from con- 'together' and sors 'fate', meaning owner of means or comrade.
  • 4. Differences of JV and Consortium  A joint venture (often abbreviated as JV) is an entity formed between two or more parties to undertake economic activity together  in a consortium, only the lead bidder's credentials both in terms of financial and technical qualifications are considered by many clients whereas a JV can get by with the technical and financial clout of its promoters
  • 5. Differences of JV and Consortium  if you have your pre-qualification criteria and project financing in your pocket, go for a consortium to spread the risk and get value for money. A consortium is easy to form and easy to execute  If you have problems in pre-qualification or have doubts on whether you will be able to finance your project; or if you have doubts on your capability to execute a project in its entirety and want a niche partner to address certain areas; or you want to enhance the solution with complementary services, a JV works wonders.
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  • 7. Areas of Consortium - EDUCATIONAL - COMMERCIAL - COOPETITION - GOVERNMENT, ACADEMIA & INDUSTRY
  • 8. Education The aforementioned Claremont Consortium (known as the Claremont Colleges) consists of Pomona College, Claremont Graduate University, Scripps College, Claremont McKenna College, Harvey Mudd College, Pitzer College, and Keck Graduate Institute. These consortia have pooled the resources of their member colleges and the universities to share human and material assets as well as to link academic and administrative resources. Appalachian College Association located in Richmond, Kentucky. The association consists of 35 private liberal arts colleges and universities spread across the central Appalachian mountains in Kentucky, North Carolina, Tennessee, Virginia, and West Virginia. Collectively these higher education institutions serve approximately 42,500 students. Six research universities in the region (University of Kentucky, University of North Carolina, University of Tennessee, West Virginia University, University of Virginia, and Virginia Tech) are affiliated with the ACA.
  • 9. Commercial Hulu, the American video streaming service, is owned by a consortium of large media conglomerates including Time Warner, 21st Century Fox, Comcast, and the Walt Disney Company Alyeska Pipeline Service Company, the company that built the Trans-Alaska Pipeline System in the 1970s, initially was a consortium of BP, ARCO, ConocoPhillips, Exxon, Mobil, Unocal, and Koch Alaska Pipeline Company.
  • 10. AirBus Example Airbus Industries was formed in 1970 as a consortium of aerospace manufacturers. The retention of production and engineering assets by the partner companies in effect made Airbus Industries a sales and marketing company.[3] This arrangement led to inefficiencies due to the inherent conflicts of interest that the four partner companies faced; they were both shareholders of, and subcontractors to, the consortium. The companies collaborated on development of the Airbus range, but guarded the financial details of their own production activities and sought to maximize the transfer prices of their sub-assemblies.[4] In 2001, EADS (created by the merger of French, German and Spanish Airbus partner companies) and BAE Systems (the British partner company) transferred their Airbus production assets to a new company, Airbus SAS. In return, they got 80% and 20% shares respectively. BAE would later sell its share to EADS
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  • 12. Coopetition Coopetition is a word coined from cooperation and competition. It is used when companies otherwise competitors collaborate in a consortium to cooperate on areas non-strategic for their core businesses. They prefer to reduce their costs on these non-strategic areas and compete on other areas where they can differentiate better
  • 13. Coopetition Example For example, the GENIVI Alliance is a not-for-profit consortium between different car makers in order to ease building an in- vehicle infotainment system. Another example is the World Wide Web Consortium (W3C), which is a consortium that standardizes web technologies like HTML, XML and CSS
  • 14. Government, academia & industry The Institute for Food Safety and Health is a consortium consisting of the Illinois Institute of Technology, the Food and Drug Administration's Center for Food Safety and Applied Nutrition, and members of the food industry. Some of the work done at the institute includes, "assessment and validation of new and novel food safety and preservation technologies, processing and packaging systems, microbiological and chemical methods, health promoting food components, and risk management strategies
  • 15. Government, academia & industry Engineering, Procurement and Fabrication is jointly performed by SADRA-SAMSUNG Consortium. Installation and Commissioning is performed only by SADRA. Fabrication is performed as the followings: SPP1 (Production Platform) Topside: 6,000 ton (SADRA) SPF1 and 2 Flares: 160 ton each (SADRA) SPB1/2/3/4 Bridges: 400 ton each (SADRA) SPQ1 (Living Quarter) Topside: 3,900 ton (SAFF) SPD1 Topside: 950 ton (SAMSUNG) SPD2 Topside: 1,350 ton (SAMSUNG)
  • 16. Government, academia & industry The CSR was established in May 2005 as a partnership between industry-leading chip makers, tool suppliers, and university researchers. It is a long-term joint R&D cooperative program on future computer chip technology nodes. The CSR is the only center within a university setting that provides the full vertical integration of design, modeling, fabrication, testing, and pilot-prototyping capabilities required to produce functional demonstrations of semiconductor devices at the most aggressive technology nodes. Industry partners within the CSR include IBM, Advanced Micro Devices, SONY, Toshiba, Tokyo Electron, and Applied Materials
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  • 21. Thanks & Regards University of Tehran Mahdi Khobreh Spring 2017