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Supply Chain Fees
and Charges Policy

Introduction

In 2011 with the implementation by the SFA of the minimum contract value KEITS became a lead provider working with a number of sub contractors to deliver a range of services.

This policy has been written in accordance with the Skills Funding Agency Funding Rules 2016/17.

https://www.gov.uk/government/publications/skills-funding-agency-common-funding-rules
https://www.gov.uk/government/publications/sfa-funding-rules-2016-to-2017-summary-of-changes

Reasoning for sub contracting

KEITS will consider working in partnership with other providers, to diversify and support our existing offer and that of other providers.  KEITS will occasionally look to sub contract to meet a specific business need; for example to offer a service which complements existing work, to offer niche provision, or to offer provision in a location where KEITS has no presence.

Partners are sourced by direct approaches to KEITS, referrals from other partners or by personal recommendation.

Selection Process

All sub contractors are subject to rigorous due diligence and interview before we work with them and KEITS also looks to being able to work with those providers who are going to be able to support local and national needs. 

KEITS is not obliged to offer due diligence to all enquiries and this will not be offered where an organisations services do not meet the requirement of KEITS as a whole.

After interview and due diligence has taken place, KEITS will then conduct a site visit to review organisational procedures, paperwork and possibly an observation of an induction or delivery.

Moving to contract and working in partnership

Once KEITS are satisfied that the sub contractor meets all our requirements then a legally binding contract will be issued.  The contract will be accompanied by the quality manual which stipulates clearly what we expect from partners and in return what they can expect from us.

Sub contracted provision will not commence until the contract and quality manual are signed and returned to KEITS.

As a lead provider KEITS needs to ensure that quality is embedded throughout all its sub contractors’ provision, paying particular attention to the quality of our sub contractors teaching, learning and assessment.  All sub contractors are expected to have their own OTLA policy and procedures and will also fall under KEITS own OTLA process.  Observations of internal and external trainers will be prioritised on a risk assessed basis.  Observations will be undertaken by trained observers using suitable and agreed planning and recording documentation.  Verbal feedback will be given to the trainer by the observer along with a written record within 10 working days.  As a result of the observation an action plan will be agreed and where applicable a date booked for follow up reviews. 

Support sub contractors will receive in return for the fees

On a monthly basis the following support is given to all sub contractors:

  • Information on their individual performance against targets.
  • Monthly MIS detailing each learner and employers details to ensure they meet the audit requirements outlined in KEITS quality manual, sub contract and the SFA funding rules.
  • In  contract year 2012/13 KEITS took the decision that any new sub contractor’s paperwork will be processed, stored and audited via KEITS staff on KEITS premises.
  • Where a sub contractor manages their own data, audit and compliance support will be completed at their premises.
  • MIS data uploaded to the hub via KEITS staff.
  • Support with interpreting government initiatives/documents and guidance.
  • Face to face meetings.
  • All sub contractors attend an annual partners day at KEITS where best practice is shared and any other updates discussed.
  • Monthly detailed provider funding reports per provider.
  • Detailed monthly individual learner progress monitoring.
  • All partners are members of AELP which is paid for by KEITS.

Fees and charges

All new sub contractors commence on the 15% management rate but this is reviewed annually in accordance with the risk rating of the provider, the size of the contract and their performance.

All sub contractors are paid monthly via BACS transfer as soon as we receive payment from SFA.

The policy is reviewed annually and is issued at the commencement of the new contract year along with the sub contractor agreement and quality manual.

Policy review and publishing

This policy is reviewed annually in July in accordance with the SFA funding rules and is published on KEITS website by August 1st.   Each sub contractor is issued with a copy of this policy annually.

Funding Declaration KEITS Supply Chain 05 2016

Providing External Assurance on Sub Contracting Controls Certificate & Report