Sub Contracting Policy and Rationale
This document aims to provide consistency of approach and transparency to our sub-contractor fees and charges.
Innovative Alliance (IA) operates as the lead provider where some provision is delivered via a sub-contractor arrangement. All providers, before becoming a sub-contractor must undergo a comprehensive due diligence process, prior to any delivery taking place and are selected on the basis of their track record, type of provision delivered, location, and to ensure IA can effectively respond to employer demand whilst reflecting local priorities. Once sub-contractual arrangements have been agreed a service level agreement is signed by both parties.
The following policy applies to all provisions to be subcontracted from the period starting 1st August 2020. This policy along with service level agreements will be reviewed at least annually and can be found on our website here https://www.innovativealliance.co.uk/sub-contracting-policy-and-rationale/.
Management fees will be deducted at source, i.e. providers will receive a Contract Value Allocation from IA that reflects their funds to spend in the contract year split into periods 1-8 (August 2020 to March 2021) and periods 9-12 ) April 2021 – July 2021. All management fees will have been deducted prior to this allocation. IA will make monthly payments to providers based on correct submission of data and supporting evidence to validate learning.
All funding claims must comply with current Liverpool City Region and/or Education & Skills Funding Agency (ESFA) funding rules and the terms and conditions of the funding agreement between IA and Sub- contractor. Where funding claims cannot be substantiated, IA will make appropriate deductions from the monthly payment paid to the sub-contractor and if appropriate will make repayment to the Liverpool City Region and/or Education & Skills Funding Agency.
Innovative Alliance Reasons for Sub-Contracting
- To be responsive to employer needs and preference of sub-contractor choice
- To meet Learner needs
- To be responsive to the identified skills priorities of LEP’s
Support Provided for Fees Charged
The management fee charged will range from 15% to 20% depending on the level of support required from the sub-contractor. The management fee will be agreed upon before signing the service level agreement.
The fee charges to be retained by IA for the below list, which is examples and not exhaustive –
- Quality assurance
- Quality improvement
- Performance review
- MIS functions in relation to ESFA data
- Provision of professional advice
- Due diligence, guidance and conducting audit
- Claims and data imputing
- Promotion and marketing
- Bid writing
- Collaborating with local authorities and employers
- Advertising of vacancies on NAS
The board has acknowledged the preference of employers and local authorities and agrees the following sub-contractor to be used for new starts and continuation of learning August 2020 – July 2021.
System Group Ltd
The board took this action to ensure that IA could meet the needs of the local employers and authorities who had either expressed a wish to work with the above providers or were currently working with them and wanted to ensure consistency for learners and service delivery.
IA holds contracts with local authorities whereby making us their preferred supplier, however, as IA does not deliver training in all vocational areas, the employers have given their decision on who they wish to use since they currently work with these providers.
If you have any questions relating to this policy, please contact Kelly Brumfitt on 0151 433 7171.