Formed in 1992, Skills Training UK has 25 years’ experience in delivering employability and skills solutions. Skills Training UK is a Prime Contractor to the Education and Skills Funding Agency (ESFA) and delivers Apprenticeships, Traineeships, and Study Programme mainstream provision nationally, as well as a range of European Social Fund funded provision including Youth Talent, Skills Support for the Unemployed, and Skills Support for the Workforce.
We ensure that all provision funded through our contracts with the ESFA, both mainstream and ESF funded provision, provides good value for money for both the Funding Organisations responsible for providing the funding for the provision as well as the organisation delivering the programme as a Partner to us. We expect and maintain a high standard of delivery for all customers using our provision, and those organisations who contract services from us are termed (and henceforth described as) ‘Supply Chain Partners’ to indicate that in partnership we share a responsibility to deliver the contract to Skills Training UK standards and expectations.
We achieved the highest grade of Excellent for the Merlin Standard twice (2012 and 2014), which has been created to recognise and promote supply chain excellence in design, implementation and performance. We are also the only organisation to have achieved the highest grade of Strong for the DWP Provider Assurance Team assessment which measures governance, compliance and data security of DWP contracted provision. We have received full assurance from the ESFA for our sub-contracting arrangements over the previous 3 years and our approach/policies are externally audited and assured.
The purpose of this policy is to provide transparency for all Supply Chain Partners, Funding Organisations and other associated parties or individuals regarding the procurement, due diligence process, support and charging rationale related to sub-contracted provision using Skills Training UK’s direct contract with any Funding Organisation.
This policy will be reviewed on an annual basis and will be published on the Skills Training UK website.
Skills Training UK believes that a Supply Chain should be maintained at a nominal proportion of the overall funded provision in line with Funding Organisation expectations. We are an experienced supply chain manager who currently work with over 70 Supply Chain Partners across a range of different contracts and we will consider the use of sub-contracted provision when all the following criteria apply:
Identification and procurement of Supply Chain Partners will usually be in response to requests/approaches made by the Funding Organisation to Skills Training UK. In all instances where we are looking for Supply Chain Partners an advertisement (or ‘Call’) will be made available on our website indicating that we are looking for suitable Partners for a specific contract(s). We may also use a range of other information and business development websites to advertise a Call for Partners. If additional Supply Chain Partners or services are required following a Call, this will be by invitation only. Contracts shall be awarded based on an approached organisation’s suitability, track record and capacity to deliver the service.
Skills Training UK operates a due diligence process as follows. Note that due to the nature of Calls for Supply Chain Partners, Points 1 and 2 may follow at a later date
following receipt of the Expression of Interest; however, no contract will be issued or agreed without at least one face to face meeting and follow up from the Development Director. All Points below must be completed for a potential Supply Chain Partner to pass our due diligence process.
Skills Training UK will use the model Sub-Contractor’s Agreement published by the Funding Organisation and amended as required by mutual agreement between both parties. This ensures that contracting is transparent and that terms and conditions (except where amended and agreed by mutual consent) mirror those between Skills Training UK and the Funding Organisation.
Signatories for contract agreement will always be at Director level within both organisations and no contractual agreement can be agreed between Skills Training UK and another organisation without Board approval and a Directors signature.
Skills Training UK will use the model Sub-Contractor’s Agreement published by the Funding Organisation and amended as required by mutual agreement between both parties. This ensures that contracting is transparent and that terms and conditions (except where amended and agreed by mutual consent) mirror those between Skills Training UK and the Funding Organisation.
Signatories for contract agreement will always be at Director level within both organisations and no contractual agreement can be agreed between Skills Training UK and another organisation without Board approval and a Directors signature.
For the significant majority of sub-contracting arrangements, Skills Training UK has set a gross margin of 20% which has been applied across all contracts commenced within the 2019/20 academic year and will continue to be applied in the 2020/21 academic year. The margin retained by Skills Training UK is used to recover the costs associated with the supporting Supply Chain Partners; Skills Training UK holds ultimate responsible to the Funding Organisation for delivery of the contract and as a result we are responsible for the actions of all Supply Chain Partners connected to the programme of delivery. The following is a non-exhaustive list of support provided to all members of our Supply Chain.
Staff costs associated with managing the contract (8.3% of the 20% gross margin)
System costs associated with managing the contract (6.3% of the 20% gross margin)
Training and Development of Staff (4.2% of the 20% gross margin)
Skills Training UK holds ultimate responsible to the Funding Organisation for delivery of the contract and as a result we are responsible for the actions of all Supply Chain Partners connected to the programme of delivery.
Marketing and Promotion (1.2% of the 20% gross margin)
Where it is identified that a Supply Chain Partner requires additional support to meet the minimum ongoing requirements of the contract provided, and with the agreement of the organisation, Skills Training UK will set a gross margin slightly higher than the typical 20%, up to a maximum value of 25%, to provide additional support including (through not limited to):
It is intended that the increased gross margin will only apply until such a time that both parties are satisfied that the gross margin can be reduced to 20% in line with other Supply Chain Partners. A review of contracting arrangements will be undertaken on a biannual basis, with a formal review of the applied gross margin at the end of each academic year.
Skills Training UK will endeavour to ensure that Partner Organisations will be paid within 30 days from receipt of funding from the Funding Organisation; contracts will reflect these terms and conditions. Skills Training UK recognises the impact that cash flow has on smaller organisations and will always endeavour to ensure that payment for provision is made as soon as is practical after delivery has taken place.
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