Subcontracting (fees and charges) - policy for subcontractors
As a requirement of Gateshead Council's Skills Funding Agency contract learningSkills are required to publish this policy prior to participating in any sub-contracting activity from 1 August 2013. Full details of subcontracting arrangements are listed in individual Service Level Agreements which along with this policy are reviewed annually.
Gateshead Council enters into subcontracting arrangements to meet the best interests of learners and employers where provision cannot be offered as effectively in house. Subcontracting must meet the needs of the local community, and focus support on priority groups, the unemployed and increasing Apprenticeship delivery. Subcontractors will be supported to follow Gateshead Council Quality Assurance processes set out in Service Level Agreements, including Teaching, Learning and Assessment and implementation of the Quality Framework. In addition to meeting Quality Assurance requirements, Gateshead Council will also support (where required) with Curriculum Management, Accreditation, Tutor Management, Course Planning, MIS management and submission data returns, marketing, learner support, innovation and health and safety. Further details on the support arrangements are detailed in Service Level Agreements.
Gateshead Council charge a management fee of all funding drawn down against the provision to be delivered. The management fee is dependent on the level of support a subcontractor requires, risk and historic delivery, but typical rates are:
Funding management fee rate
Adult Education Budget - 18%
Apprenticeships - 25%
Full payment terms are confirmed with individual subcontractors and are listed in Service Level Agreements, but typically will be based on actual funding drawn down from the funding bodies to the reference date (usually 1 December, 1 March, 1 July). Payments to subcontractors are capped at the rate of Maximum Contract Value listed in Service Level Agreements. Subcontractors are informed of the amounts to invoice, and payments will be made by BACS within 30 days of receipt of invoice.
Details of actual levels of funding paid and retained for each subcontractor will be published on our website within 30 days of the Academic Year final ILR submission.