Bishop Grosseteste University

Sub-Contracting Fees & Charges Policy 2016/2017

Skills Funding Agency Provision

Scope

This policy applies to all supply chain activity supported with funds supplied by the Skills Funding Agency, the Education Funding Agency or any successor organisations.

Context

The policy is now a mandatory requirement that must be in place prior to participating in any sub-contracting agreements for the 2016 to 2017 funding year. The content of this policy has been developed in line with Association of College (AoC) / Association of Employment and Learning Providers (AELP) Common Accord and Supply Chain Management and the Skills Funding Agency (SFA) Funding Rules.

Overarching Principle

Bishop Grosseteste University (BGU) will use its supply chains to optimise the impact and effectiveness of service delivery to the end user.

The University will therefore ensure that:

  1. Supply chain management activities comply with the principles of best practice in the skills sector. In particular, they will be guided by the principles given in the AELP publication “Supply Chain Management – a good practice guide for the post-16 skills sector” (November 2012 and subsequent iterations)
  2. The University will at all times undertake fair and transparent procurement activities, conducting robust due diligence procedures on potential sub-contractors to ensure compliance with the Common Accord at all levels and to ensure the highest quality of learning delivery is made available, demonstrating value for money and a positive impact on learner lives
  3. Any funding that is retained by the University will be related to the costs of the services provided. These services, and the levels of funding being retained for them, will be clearly documented and agreed by all parties. The rates of such retained funding will be commercially viable for both sides and will be negotiated and agreed in a fair and transparent manner. They will be proportionate to the actual services being provided
  4. Where disputes between supply chain partners cannot be resolved through mutually agreed internal resolution procedures, the University will submit to independent outside arbitration or mediation and abide by its findings. Contract documents will require both parties to agree that the achievements of supply chains are attained through adherence to both the letter and spirit of contracts or partnerships. Signatories therefore commit that all discussions, communications, negotiations and actions undertaken to build, maintain and develop supply chains will be conducted in good faith in accordance with the Overarching Principle

Rationale for Sub-contracting

BGU engages with sub-contractors to better meet customer needs. Reasons are varied but could be:

  • To work with providers who effectively reach priority learners in the community and who can demonstrate positive employment outcomes
  • To temporarily expand provision to meet a short term need
  • To provide access to, or engagement with, a new range of customers
  • To support another provider to develop capacity/quality
  • To provide niche delivery where the cost of developing direct delivery would be inappropriate
  • To support employers with a wide geographic requirement
  • To extend capability and capacity to support the broader University response to local redundancy situations such as the closure of SSI

Due Diligence

The University will undertake a robust process of due diligence when selecting potential sub-contractors to ensure the highest quality of learning delivery is made available which demonstrates value for money and has a positive impact on learner lives. Potential partners must complete and submit the prequalification questionnaire at the expression of interest stage. Through this process, the University will test the robustness of the provider to assess and mitigate any potential risk to the University that the provider may not be able to uphold the SFA’s requirements. This will include a review of financial robustness of the provider and, their legal status and monitoring processes.

Contracting Arrangements / Quality Assurance

Successful partners will be issued with a legally binding contract eligible for one full year. It must be signed and witnessed by the sub-contractor and the University. Terms and conditions will be agreed and included in the contract. The University and Skills Funding Agency are granted full permission and rights to monitor the quality of training being provided and visit the sub-contractor at their premises, training sites or employer’s premises from which they operate.

The sub-contract will reflect completely and accurately the Skills Funding Agency Rules 2016/17 with performance being assessed against the OFSTED Common Inspection Framework. All sub-contractors holding contracts with an overall value of £100,000 or more a year will be required to be listed on the current Register of Training Organisations held by the Skills Funding Agency.

The University is committed to improving the quality of teaching and learning and the student and employer experience across its provision and will work with the sub-contractor to ensure continuous improvements are put in place across the range of provision offered. The following processes are in place to help monitor the quality of sub-contracted provision and actively improve quality on an on-going basis:

  • a robust schedule of quality assurance audits are carried out throughout the year
  • annual reviews with target setting to include minimum success rates with all partners
  • regular management meetings between the University and its sub-contractors
  • support for training and development of sub-contractors and their employees
  • regular support to ensure information, advice and guidance meets SFA requirements
  • external review of teaching and learning and quality undertaken annually
  • external mock inspection exercise undertaken every 3 years

All sub-contractors are required to undertake a self-assessment process in accordance with the Common Inspection Framework and produce a Self-Assessment Report (SAR). BGU will support partners in this process and in the setting of clear targets for improvement.

This will only relate to ‘provision sub-contracting’ i.e. sub-contracted delivery of full programmes or frameworks. It will not include the delivery of a service as part of the delivery of a programme e.g. buying the delivery of part of an Apprenticeship framework or outreach support.

Provision sub-contracting lists will be agreed with local Skills Funding Agency Officials prior to publication.

Publication of Information relating to Sub-contracting

In compliance with Skills Funding Agency and other agency funding rules that apply, the University will publish its sub-contracting 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 Skills Funding Agency).

Percentage Range of Fees

  • The proportion of the fees retained is based upon a nil profit margin
  • The University management fee is 15%
  • The range is calculated based upon the direct costs associated with the operating and quality assuring sub-contracted provision and an appropriate overhead recovery level required for these activities to recoup non direct costs incurred by the University e.g. resources of the Registry, Student Services, Finance, IT and other curriculum support activities
  • The University does not differentiate between providers regarding fees charged other than for the different types of provision delivered as identified earlier in the policy
  • The support sub-contractors will receive in return for the fees charged includes:

Designated contact for sub-contracted delivery

Dealing with partner queries

Advice and support related to national agencies and funding bodies

Preparation of the contract agreement

Collecting and updating due diligence

Performance management and Contract review meetings

Paperwork checks and audit compliance

Monitoring of student progress

Quality and compliance monitoring

Coordinating self-assessment processes

Administration support to process the data

Data submission via the University’s HESA (Higher Education Statistical Agency) and HEFCE (Higher Education Funding Agency) annual data returns

Management of funding, finances and reconciliation

Preparation and processing of payments

Monthly or quarterly payment information with transparent calculations detailing both the funding claimed by the University and the payment passed to the sub-contractor

Curriculum planning advice

Regular site visits

Funding updates

Teaching and Learning Observations

Quality Improvement guidance

Skills updating sessions for delivery staff

Sharing of ‘Good Practice’

Payment Terms

Payment to sub-contractors will be made within 30 days of the invoice been received, subject to all necessary paperwork and records having been submitted within the required timescale. A checklist of key dates and deadlines for the paperwork to be received for inclusion in the return to the Skills Funding Agency will be provided. Payment details are also included in the contract schedules issued to sub-contractors at the start of the new contract year.

Communication

This policy will be reviewed in each summer term and updated as required. It will be published on the University website during the July prior to the start of the Academic Year in which it will be applied. Potential sub-contractors will be directed to it as the starting point in any relationship. Any changes to the policy will be communicated to existing sub-contractors at the contract management meetings.

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