The policy applies to all supply chain activity supported with funds supplied by the Skills Funding, agency, the Education Funding Agency or any successor organisations.
The policy is driven by a mandatory requirement of the Skills Funding Agency that must be in place prior to participating in any subcontracting activity from 1 August 2013. The content covered in this policy has been developed in line with AoC/AELP Common Accord, the SFA Funding rules and the LSIS Supply Chain Management document.
Kingston Maurward College in order to ensure it can comply with all its responsibilities as a publicly funded organisation will use subcontractors where appropriate to optimise the impact and effectiveness of service delivery to our students of businesses. The college will ensure that:
a. All subcontracted activity comply with the principles of best practice in the skills sector. In particular they will be guided by the principles given in the LSIS publication “Supply Chain Management – a good practice guide for the post – 16 skills sector” (Nov 2012 and subsequent iterations) which can be accessed on the College website in the partners portal
b. The college will at all times undertake fair and transparent procurement activities, conducting robust due diligence procedures on potential subcontractors 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.
c. Any funding retained by the college will be related to the costs of the services the College provides to their subcontractors. These services and related charges will be clearly documented in the subcontract agreement which will be signed by all parties prior to the commencement of any activity. 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.
Where disputes between supply chain partners cannot be resolved through mutually agreed internal resolution procedures, the college 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.
e.This policy is written in line with the Equality and Diversity Policy of Kingston Maurward College.
Rationale for sub-contracting
The College contracts with number of sub contractors to ensure local, regional needs are best served.
KMC sub contracts:
- To temporarily expand provision to meet a short term need.
- To provide immediate provision whilst expanding direct capacity
- To provide access to, or engagement with, a new range of customers.
- To provide niche delivery where the cost of developing direct delivery would be inappropriate.
- To support local employers
- Create progression opportunities for our students
Kingston Maurward College recognises Sub contracted activity as a key part of the College’s overall provision. And as such will be monitored and managed through the existing College QA processes and procedures.
The Policy positions sub-contracted provision as a core part of College activity to enable continuous improvements in the quality of teaching and learning for both the college and its subcontractor’s. This will be achieved through the sharing of effective practice across the supply chain, for example through the Self-Assessment Report process and continued professional discussion.
Fees and Charges 2013/14
A standard college management fee of 25% of all funding drawn down against the provision will be applied as a benchmark figure. This figure has been calculated as a representative cost to the College in effectively identifying, selecting and managing sub-contracted provision. The College will individually assess each subcontractor prior to any and each agreement with that subcontractor and an open rationale will be used to determine the level of management fee retained by the College.
Variations to these charges are determined by identifying other factors that could have a material impact on this baseline. An evaluation of the complexities relating to:
- Historical Data – Overall Timely Success Rates
- Financial Risk rating
- Geographical Location of Teaching and Learning
- Sector Subject Area
- Contract Length
- Type of Programmes
- Type of customers that are to be engaged
- Type of provision that is to be undertaken
- Any activities that the College undertake on behalf of the Subcontractor, i.e. Verification, Certification, Employer Engagement
- The use of the College facilities or resources to support the activity
- The context of the contract and contractor
Support provided by the College in relation to the management fee
The standard 25% management fee includes the minimum amount of QA activity that the College would attach to the lowest possible risk sub-contractor. Further charges to cover additional costs may be added to the base 20% fee to cover the cost of the College of any additional support that the College deems necessary to ensure the quality of delivery and the success rates of any subcontracted provision. It also covers the administrative responsibility for the processing of learner documentation including any related funding audits, appropriate returns and information as determined by the funding organisation(s) it pertains to.
Variation in Management Fees
If any of the above listed factors are believed to incur additional costs to the College through the College having to put in place additional support, via increased monitoring and guidance the management fee will be recalculated and negotiated accordingly.
The College will pay subcontractors on a monthly basis in line with actual funding drawn down from the relevant funding agency as per the individual contract agreement. The College will advise the subcontractor monthly of the amounts eligible for invoicing in line with the Funding rules.
This policy will be reviewed and updated in line with current funding guidance and published on the college website, in the business return to the start of each academic year.
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 sub-contracting gees 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 the agencies). This will only relate to ‘provision contracting’ 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).
The College will ensure all actual and potential subcontractors have access and sight of this policy and other relevant documents relating to any subcontracting arrangements.