Supply Chain Fees & Charges Relating to Provision Subcontracting

Reason for subcontracting

Lancaster and Morecambe College will work in partnership with a small number (usually less than 5) of high quality partners to deliver its programmes where,

  • The contractor has the skills and experience to deliver programmes that the College would otherwise be unable to provide.
  • The contractor is a niche or specialist provider that is able to deliver provision more efficiently and cost effectively than the College.
  • The College will benefit by gaining experience of new and innovative methods of delivery and by gaining access to new markets.

Quality and Teaching and Learning

The contractor will at all times comply with the College’s quality standards for teaching and learning and contracts with sub contactors will stipulate financial penalties for any under achievement of quality measures.

The College, through its Curriculum Management Team structure will closely monitor the performance of the contractor throughout the duration of the contact and will address emerging quality issues immediately.

Subcontracted provision will be included in the relevant programme area of the College’s annual SAR.

Fees and Charges

The College will levy a charge in the region of 15%-30% of the funding received from the Skills Funding Agency. This charges covers,

  • Processing of all documentation in accordance with the Skills Funding Agency regulations.
  • Data validation and audit to ensure compliance with the Skills Funding Agency regulations.
  • On-going support and monitoring of the quality of provision.
  • Access for learners to the College’s student support services including online resources, the learning centre and other welfare and wellbeing services.
  • Regular contract meetings throughout the year.
  • Curriculum planning and funding advice
  • Increase in risk exposure to the College.
  • Compliance with Skills Funding Agency rules relating specifically to subcontracting.

View table of Subcontractor Funded Provision

The fee applied will be negotiated with the subcontractor before the provision commences. Fees charged may vary according to the following factors,

  • Contract Volumes
  • Input required from College staff
  • Risk profile, financial, quality and reputational.

Payment Terms

  • Payment schedules will be agreed individually with each contractor to reflect the cash flow associated with the type of delivery. Payments will only be made on receipt of all supporting documentation and achievement of minimum quality standards stipulated in the contract.
  • Payments due will be calculated on the basis of ILR funding returns submitted to the Skills Funding Agency. The calculations will be provided to the contractor for checking and payments will be made within 30 days of receipt of a valid invoice.

Supply-Chain Fees and Charges Relating to Provision Subcontracting

This policy will be published on the College's website and will be reviewed annually. Contactors will be notified of the policy prior to entering into an agreement.