Supply Chain Fees and Charges Policy
Eden Training Solutions is committed to working with subcontractors in delivering a professional learner and employer experience; an experience that incorporates best practices in training and assessment, technology and tools, and ensuring the learner is at the centre of everything we do.
Our intention of partnering with subcontractors is:
- To bring about a material improvement to the learner and/or employer experience and enable the subcontractor to benefit from our economies of scale.
- To realise a reduction in the cost of acquiring new learners.
- To realise cost efficiencies in our internal operations.
- Enter new industrial sectors
The purpose of this policy is to ensure effective management of subcontractors and adherence to the necessary policies, procedures and processes stipulated by government agencies (like the Education Skills Funding Agency) and our own organisation. Our initial engagement with and final decision to partner with a subcontractor will be informed by the following:
- A fair, open and transparent tender process.
- Compliance with all legal and contractual requirements
- Sharing of best practices – specific to industrial sectors and across industrial sectors
- Agreeing to our standard Service Level Agreement that describes the role and responsibility of both parties (Eden Training Solutions and the subcontractor)
- An open relationship with key stakeholders in the subcontractor organisation such that we are able to share improvement opportunities – operational delivery, learner volumes, etc.
- Value for money – for the learner, employer, subcontractor, Eden Training Solutions and the ESFA.
This policy relates to activity funded through the Education Skills Funding Agency (ESFA) and European Social Fund (ESF) whereby Eden Training Solutions enters into a subcontracting agreement to deliver activity.
To ensure this, our policy will be reviewed annually.
Signed: L Newbould
Chief Executive Officer
Date: 30th July 2021
Review Date: July 2022
This policy will be available to all subcontractors and potential subcontractors via the Eden Training Solutions website and will also be shared with stakeholders during face-to-face meetings.
Subcontracting Tendering Process and Due Diligence
Eden Training Solutions will ensure that the selection of subcontractors is fair, open and transparent throughout the tendering process.
All new subcontracting opportunities will be published on the Eden Training Solutions website should we wish to tender any provision.
Subcontractors will provide Eden Training Solutions with an initial expression of interest by completing the due diligence form.
The Director of Systems and Chief Executive Officer will review all potential subcontractor information. This process will ensure that Eden Training Solutions is confident the subcontractor has sufficient capacity, quality and business standing to deliver the provision in a way that complies with our predefined standards.
All subcontractors who undertake the tendering process will be notified of the outcome. Subcontractors who are successful during this process will receive a due diligence visit from Eden Training Solutions to complete further due diligence checks before a Contract for Service is issued.
Once the due diligence visit has been completed and reviewed, each potential new subcontractor will be scored via a scoring matrix:
Sufficient evidence provided and fully satisfied with the subcontractor capacity and capability to proceed with contract.
Evidence provided and satisfied with the subcontractor capacity and capability. Some areas for improvement and/or potential risk were highlighted.
Proceed on a trial contract or additional evidence required before awarding a contract.
Evidence provided but not satisfied with the subcontractor capacity and capability. Will not proceed with contract.
Responsibility and Limits of Subcontracted Provision
Ultimately, as the primary contractor with the ESFA, Eden Training Solutions retains responsibility and accountability for all aspects of the training provision delivered by the subcontractor.
Eden Training Solutions will ensure a legally binding agreement/contract for services is in place with all subcontractors and must be signed by the Chief Executive Officer.
The contract between Eden Training Solutions and the subcontractor will define specific activities together with the respective quality standards, timing, sequencing, etc. to be undertaken by both parties.
Managing Subcontracted Provision
Each subcontractor will be provided with a main point of contact for management and administration of the subcontracted provision.
Monthly management meetings will be held with each subcontractor to review the provision, to provide and share best practice and to address any issues/concerns.
A six-monthly Contract Review meeting will be held between Senior Management in both organisations to review the performance of the contract and agree a subsequent improvement plan to resolve any areas of contractual or Service Level Agreement non-conformance.
All contracts between Eden Training Solutions and the subcontractor will run for a period of 12 months with a renewal meeting / discussion taking place prior to contract renewal.
Fees and Charges
All fees and charges will be transparent and calculation methods will be available to the subcontractor.
The ESFA requires/expects that the amount of funding retained by Eden Training Solutions for programmes and provision delivered in whole or in part by a sub-contractor takes account of the actual costs incurred by each party in the delivery of the provision. This, together with the supplier contract and supporting Service Level Agreement will form the basis of monthly payments to either party – principally to the subcontractor.
All subcontractors will be required to submit a profile request at the start of every academic year. Supplementing this will be the monthly performance review meetings between Eden Training Solutions and the subcontractor about performance levels – specifically any areas of under-performance.
Any difference in payments received by the subcontractor from Eden Training Solutions in the undertaking of agreed activity (e.g. training and/or assessment) will be communicated to and understood by the subcontractor in advance of the payment due date.
The Management Fees charged by Eden Training Solutions cover all activity undertaken by Eden Training Solutions to support the subcontractor.
Prior to contracting all delivery and associated management costs will be set out and agreed with both the employer and the subcontractor, these costs will be reviewed prior to re-contracting on an annual basis.
Eden Training Solutions will provide the following activities and support mechanisms for this fee:
- Allocated contract manager to provide support on the management and administration of the subcontracted provision and answer any enquiries
- Updates on key sector information including funding and eligibility changes
- Support and guidance on regular financial reports and learner data analysis
- A suite of Key Performance Indicators (KPI’s). These will comprise of situation-specific criteria and those generic to all subcontractors.
- Learner data audits to ensure compliance against ESFA guidelines
- Quality assurance audits/visits (including unannounced visits) and report provided detailing all feedback and recommendations
- Teaching and learning observations and learner feedback to provide feedback and support to improve the quality of provision
- Qualification Achievement Rate (QAR) reports every quarter and will show overall and timely achievement broken down by year, age band and sector.
Eden Training Solutions shall provide the subcontractor with details of the Provider Funding Report (PFR) when successful monthly funding submissions to the ESFA for the Organisation’s learners are completed. The subcontractor will then submit invoices (exempt from VAT) to Eden Training Solutions for 100% of such funding.
Eden Training Solutions shall submit VAT invoices to the Organisation in respect of the Services provided, detailing the fees due and the services to which those relate. This will represent the % management fee of the funding submission and will be subject to VAT at the prevailing rate.
The net balance of these 2 invoices will be paid to the subcontractor within 30 days of receipt of the invoice sent by the subcontractor to Eden Training Solutions for carrying out the Services set out in the contract.
Quality Assurance and Performance
All Subcontractors will supply Eden Training Solutions with all necessary paperwork required for funding compliance (reviews, signups, H&S assessments, change of circumstances, early leavers etc.) for the monthly ESFA submissions in a timely manner. Any areas for concern will be discussed at the monthly performance review meeting.
Eden Training Solutions will conduct both announced and unannounced Quality Assurance audits with the subcontractor. Where applicable, Eden Training Solutions will provide the subcontractor with scope and dates for each audit. As a minimum, Eden Training Solutions will review the below during each audit visit:
- Accuracy of data
- Quality of delivery – teaching, learning and assessment
- Learner progression, early leavers, achievers
- Internal and external verification
- Health and safety
- Equality, Diversity and Inclusion
- Policies and procedures for the delivery of the contracted provision
- Information, advice and guidance
- Facilities and resources
A copy of the audit report feedback and improvement plan will be sent to the subcontractor. Subsequent improvement plans will form part of the monthly performance review meetings between Eden Training Solutions and the subcontractor.
All subcontractors must meet the minimum performance levels for each sector subject area as set by the ESFA.
Where performance of a subcontractor falls below the required standard, subcontractors will be provided with a notice to improve. This will form the basis of an agreed improvement business plan, with implementation monitored on an on-going basis at the monthly performance review meeting and be incorporated into an amended Service Level Agreement between both parties. If the subcontractor fails to meet the necessary improvements in the agreed timescales, Eden Training Solutions may be obliged to implement contract termination procedures.
All subcontractors are required to undertake a Self-Assessment (SAR) and Quality Improvement Plan (QIP) for their provision in-line with the Common Inspection Framework. Subcontractors will also contribute into Eden Training Solutions’ SAR and QIP. The subcontractor will make available the content of SAR and QIP.