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London Skills for Growth Subcontracting Supply-chain Fees and Charges Policy

1. Policy Statement

London Skills for Growth is committed to growing and diversifying the range of courses it delivers to widen participation, deliver to niche markets, engage in new and emerging markets and meet the regional and local economic development agenda. In order to achieve this, London Skills for Growth will subcontract part of its provision to partner organisations that can demonstrate high quality delivery, where such an arrangement is in the best interests of the learner and employers.

2. Scope

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

This strategy covers two key areas of Subcontracting:

  1. Provision subcontracting, where the subcontractor delivers full programmes or frameworks;
  2. Service subcontracting, where the subcontractor delivers a service as part of the delivery of a programme such as an Apprenticeship, a framework or outreach support.

In each case, London Skills for Growth retains full accountability for contract delivery.

3. Overarching Principle

In line with the Common Accord London Skills for Growth will commit to the overarching principle of optimising the impact and effectiveness of service delivery to the learner by:

4. Subcontracting Rationale

Upon commencement of the subcontracting process, Skills for Growth will consider a Business Case Proposal to ensure that the subcontracting will be in the best interests of all parties. Subcontracting Supply-chain Fees and Charging Policy – July 2015 Version 3

We will ensure that:

  1. The proposed delivery is in the best interests of learners and employers
  2. The proposed delivery has a clear strategic fit with our mission, objectives and values
  3. There is sufficient expertise within London Skills for Growth to quality assure the provision
  4. There is sufficient staff resource in support areas to administer the processes
  5. The Subcontractor is approved by our due-diligence process
  6. There is sufficient funding available within our funding contract
  7. The Subcontractor agrees to work within the terms of our contract.

5. Improving the Quality of Teaching and Learning

Subcontracted partners will be expected to meet Skills for Growth’s quality assurance standards. London Skills for Growth is committed to supporting, developing and sharing good practice and professional development of staff through quality reviews, operational meetings, observations of teaching and learning and learner and employer feedback.

Subcontracted activity is a fundamental part of Skills for Growth provision. The quality of the provision will be monitored and managed through our existing quality improvement process with London Skills for Growth’s Self-Assessment Report / Quality Improvement Plan process ensuring continuous improvement in all parts of the learner journey.

6. Management Fees

London Skills for Growth retains a management fee from all subcontracted partner organisations of between 10% and 20%. The fees charged reflect the cost of the procurement process and the management of the contracts. The exact mix and level of support for each Subcontractor varies according to the needs of the individual Subcontractor. Each Subcontractor will receive a high level of support and guidance and access to London Skills for Growth systems, including:-

Management fees paid to Subcontractors depend on the level of support required, the experience and track record of the Subcontractor, their target learners; published success rates and the level of risk as determined by the due diligence process.

7. Payment Arrangements

8. Policy Communication

The Policy will be discussed with all Subcontractors during contract negotiation meetings and reviewed at least annually in July of each year. Any changes will be notified to Subcontractors as part of a regular performance review or via separate correspondence

London Skills for Growth Subcontractor Funding Details

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