1. Introduction

1.1 Purpose
The purpose of this document is to give details of the Supply Chain Fees and Charges Policy offered by NLT Training Services Ltd to sub-contracted providers. This policy should be read in conjunction with other NLT Training Services Ltd policies and procedures and the sub-contract.

1.2 Scope
The Supply Chain Fees and Charging Policy will be communicated to all sub-contracted provision. The NLT Training Services Ltd website will publish the policy. This policy shall be operated with effect from 1st August 2016 and revised annually.

1.3 Responsibility
Responsibility lies with the Senior Management Team to ensure that the Supply Chain Fees and Charging Policy is adhered to.

1.4 Entering into sub-contracting arrangements
NLT Training Services Ltd sub-contracts in order to extend the range of its provision and to address the needs and support the delivery of learning in the community. It also helps us to support Local, Regional and National Strategies and reach out to under-represented groups, making us a more inclusive organisation. All applicants must demonstrate the quality of their provision by ensuring that their organisation is on the Register of Training Organisations. Upon successful completion, NLT Training Services Ltd will enter into sub-contractor agreements annually, to commence 1st August each year. A contract must be signed and on file before delivery commences.

NLT Training Services Ltd does not appoint sub-contractors that hold an aggregate contract value of £100,000 or above per academic year, including any proposed provision, unless they are listed on the Register of Training Organisations.

Contracting We will only award contracts for delivering funded provision to legal entities. If the legal entity is a registered company, it must be recorded as ‘Active’ on the Companies House database.

We will not award a contract to a legal entity if:

• It has an above average risk warning from a credit agency.

• It has passed a resolution (or the court has made an order) to wind up or liquidate the company, or administrators have been appointed, or

• Its statutory accounts are overdue.

2. Fees

The management fee is negotiated individually with each sub-contractor and is between 15% and 20%.

2.1 A penalty will be applied if the sub-contractor’s success/timeliness rates do not meet minimum levels of performance. These will be set annually by NLT Training Services Ltd, and will take into account the minimum levels of performance set by the SFA.

This penalty may also apply if the sub-contractor:

• Receives a Grade 4 for Teaching, Learning & Assessment and other key learner experiences

• Has an internal audit error rate of over 5%

• Has inadequate Safeguarding Procedures

3. Quality of Provision

Due diligence will be completed prior to entering into sub-contracts with any provision. NLT Training Services Ltd will support sub-contracted provision by:

• Providing appropriate and well-experienced business support staff.

• Issuing a sub-contractor process and procedure manual with all relevant documentation at commencement of the contract year to ensure quality of documentation and a full understanding of NLT Training Services Ltd procedures.

• Communicating regularly with Partners; plan and carry out quarterly management meetings to monitor achievement and progression rates.

• Carrying out, twice per year, full programme reviews of quality and provision.

• Carrying out annual internal audit provision.

• Providing Skills Funding Agency updates.

• Carrying out announced and unannounced visits to monitor teaching, learning and assessment and appropriate use of Skills Funding Agency funds.

• Monitoring that subcontractors provide update training on Equality & Diversity and Safeguarding/Prevent and sharing best practice, including teaching, learning and assessment.

• Collating, in partnership with sub-contracted provision feedback from learners and employers

• Administering the programme payment schedule as agreed.

• The Board of Directors and the Chief Executive are satisfied that each subcontractor meets the strategic aims and enhances the quality of the learner experience.

(Updated 03-10-2016)