DUE FOR REVIEW: JULY 2018
This document aims to provide consistency of approach and transparency to the College’s supply-chain fees and charges in relation to its subcontracting provision.
Definition of Terms
Standard Management Fee: This is the fee applied to subcontracted partnership contracts to account for standard costs incurred by the College through its management of these contracts.
Skills Funding Agency (SFA) – Government funded agency that supports provision for learners in further education who are aged 19 or over, and also including Apprentices who are aged 16-18 years old.
Education Funding Agency (EFA) – Government funded agency supporting provision for learners in further education who are between 16 – 19 years old.
1. Reasons for subcontracting
The College recognises the need to offer as diverse a range of provision as possible, in as flexible and cost effective a way as possible. By working in partnership with subcontractors the College is able to do the following:
2. Improving Quality
The College is committed to continual improvement in teaching and learning, both in its own direct provision and in its subcontracted provision. A range of approaches are employed in order to do this, such as observations, self-assessment reports and quality improvement plans. In terms of provision subcontracting specifically, the following processes are in place to help monitor quality of provision, and actively improve quality on an on-going basis:
Standard Management Fee – This fee is applied to all subcontracted contracts, and is the proportion of SFA/EFA funding retained by the College to cover standard costs incurred through its management of these contracts. These costs include:
STANDARD MANAGEMENT FEE APPLIED
The standard management fee is applied to all contracts as follows:
Classroom learning funded contracts – 10%
Workplace learning funded contracts – 15 – 20%
In 2016/17 The funding drawn down related to subcontracted provision was £405,427 of which £324,940 was paid to subcontractors.
For details relating to subcontracting for 2016/17 please click here
4. Payment Terms
Payment terms will be dependent upon the type and length of provision subcontracted:
For programmes of longer duration payment will be made on a monthly basis, with a final reconciliation payment within 2 months of the programme planned end date providing the college has received proof of learner achievement.
Upon receipt of satisfactory evidence, the College will pay associated invoices within 30 days of the invoice date. This payment will be made by BACS transfer. However, if any supporting evidence is queried by the College then payment will be withheld until these queries are resolved. Payment will then be made at the earliest possible opportunity.
5. Policy Review
The College will review this policy annually. This review will take place in June of each year, and any policy revisions will be completed and published prior to the commencement of the next academic year.
Any changes to the policy will be communicated to existing subcontractors at contract management meetings. Furthermore, the College will distribute a copy of this policy to all potential new subcontractors and discuss it with them as part of the College’s pre-contracting process.
7. Publication of Policy
An up-to-date copy of this policy will be posted on the College’s website. Paper copies of the policy will be made available on request.
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