Supply chain fees and charges policy

Reason for subcontracting

The College subcontracts some of its training provision in order to expand its offer, giving learners a wider breadth of opportunities in areas in which the College either does not have provision or is unable to deliver the volume required.

Ensuring and improving quality

The College works with the subcontractor to manage the quality of provision, which is then checked by an independent observer.

Fee information for subcontractors

Subcontracted provision usually has a management fee of 20% associated with it.

For new subcontractors a 25% fee is levied to reflect the higher level of support required in the first year of partnership and the associated risk to the College of a new partnership, this can drop to 20% -17.5% once a partnership is well established and support is of a lower level.

The fees and charges policy is part of the contract process and partners must indicate that they have read and agree to these. This is confirmed upon signing the partnership Service Level Agreement.

The support subcontractors receive for the fee

All subcontractors’ paperwork and data is checked and maintain by the College, best practice disseminated and staff made available to the partner if support is required. (Administration support includes relevant reporting, data entry, audit, quality assurance including classroom observations and training, support for exams etc.)

Payment terms

Partners are paid in arrears for all learner activity which appears on the PFR. The College’s payment terms are 30 days upon receipt of an invoice.

Publication of information relating to sub-contracting

In compliance with Skills Funding Agency and other agency funding rules that apply, the College will publish its subcontracting fees and charges policy and actual end-of-year sub-contracting fees and charges on its website before the start of each academic year (and in the case of actual end of year data, as required by SFA). This will only relate to ‘provision subcontracting’ i.e. subcontracted delivery of full programmes or frameworks. It will not include the delivery of a service as part of the delivery of a programme (for example, buying the delivery of part of an Apprenticeship framework or outreach support). Provision subcontracting lists will be agreed with local SFA Officials prior to publication.

Subcontractor payment reports

Report contain information relating to contracts from the year indicated and are published within 30 days of the previous contract year ILR closing.

Subcontractor Fees and Charges 2014 – 15

Subcontractor Fees and Charges 2015 - 16

Additional charges per learner

The College may also retain funding to cover the cost of any funded activity that it might undertake on behalf of the subcontractor such as:

  • Awarding Organisation fees and charges
  • Hiring of facilities/equipment within/from the College
  • Internal Verification
  • Providing staff

Reviews and updates to this policy

The policy is reviewed annually and updates made to this page. Subcontractors will be notified of any changes. The policy was last updated in November 2015.

Approved by the Principal and the Chair of Governors