Supply Chain Fees & Charges Policy
1.1 As an ESFA Prime Provider TDR must publish a supply-chain fees and charges policy on our website before entering into any Sub-Contract Agreements for the 2017/2018 academic year.
2.1 This policy statement details how TDR will apply fees and charges to Sub-Contract Agreements with organisations for the delivery of training on the Company’s behalf for 2016/17 and is published in line with ESFA requirements stated in Funding Rules 2017/18.
3. Reasons for Subcontracting
3.1 TDR sub contracts for one or more of the following reasons:
3.1.1 To deliver niche provision – building on a sub-contractors’ extensive and focused experience in the specialist areas.
3.1.2 To capacity build – help TDR to respond flexibly to changing market demands and emerging opportunities.
3.1.3 To engage with new markets – provide access to, or engagement with, a new range of customers.
3.1.4 To ensure revenue / margin protection – working with sub-contractors to explore and learn about new frameworks or sectors prior to investment in resources.
3.1.5 To ensure greater cost efficiency – to run certain programmes where it would not be viable for TDR to build up in-house resources and expertise.
3.1.6 To provide good development opportunities for both TDR and its Sub-contractors, to share good practice and new ways of working.
3.1.7 To temporarily expand provision to meet a short term need.
4. Contribution to Improving the Quality of Teaching, Learning and Assessment.
4.1 TDR ensures that Sub-contractors are made aware of the Company’s Quality processes and procedures and that they are guided and supported by TDR to fully comply with the Company’s Quality Standards.
4.2 TDR ensures that all sub-contractors are made aware of the process of completing the TDR Self-Assessment Review and the Quality Improvement Plan. Any actions arising are addressed in co-operation between the Company and the Sub-contractor.
4.3 Sub-contractors are required to hold course centre approvals in their own right and fully liaise with the awarding bodies. TDR will regularly review External Verifier’s reports submitted by Sub-contractors and monitor any follow-up required.
4.4 TDR will appoint an appropriately qualified Technical Specialist for each contract whose responsibilities include undertaking regular quality assurance monitoring visits to check learner files, schemes of work and conduct Internal Verification.
5. Range of fees retained
5.1 The typical percentage range of fees charged by TDR is between 15 to 30%, dependent upon the level of risk. This management fee is deducted from the ESFA rate based on the funding income received by TDR, derived from the published data in the PFR (Provider Funding Report).
5.2 The management fee is calculated by assessing a number of risk factors derived through the Sub-Contracting with Training Partners/Associates Quality process and due diligence that TDR requires all potential sub-contractors to undergo, including but not exclusively;
• If the potential sub-contractor is registered on the Register of Training Organisations
• Anticipated demands of the contract on the TDR’s resources.
• Financial standing of the Sub-contractor.
• Proven track record of the Sub-contractor with regard to meeting success and funding targets.
• Contract size with regard to both funding and learner numbers
• Provision meets priority needs of local / community or sector priorities
6. Support for Sub-contractors
6.1 In return for the management fee charged by TDR, Sub-contractors will receive:
• Designated points of contact and support from the TDR Contracts Manager
• Advice and guidance at pre-contract stage.
• Regular review meetings with progress reports.
• Specialised Information, Advice and Guidance as required.
• Regular monitoring visits with detailed feedback identifying good practice and areas for improvement.
• Induction and audit compliance training.
• Quality training including preparation for Ofsted inspection; writing of SARs and Quality Improvement Plans
• Ongoing administration support including in-depth checks of evidence submitted and regular feedback on issues identified.
• Input of induction documentation submitted.
• Submissions of data to funding organisations.
• Ongoing data checks and support to resolve data queries.
• Ongoing support to address any areas for improvement.
7. Reason for Differences in Fees Charged
7.1 Fees charged to individual providers may differ depending on the calculation of management fee as specified in 5.1.
8. Payment Terms between TDR and its Sub-contractors
8.1 Payments are made on a monthly basis at the end of the following month in which the activity is successfully processed and uploaded to the ESFA by TDR subject to the terms and conditions specified in the Sub-Contract Agreement.
8.2 Payments are made based on the ESFA value provided in the PFR received monthly by TDR from The Data Service, less the management fee as published in the Sub-Contract Agreement with TDR.
8.3 Supplier Invoices will be paid 30 days after entry of all relevant data into the TDR (MIS PICS) system and payment to TDR by the ESFA
8.4 Details of any rights by TDR to withdraw, reduce or withhold funding are published in the Sub-Contract Agreement and relate to the protection of ESFA funds and not to the benefit of TDR.
8.5 Payments are made by BACS.
8.6 TDR expects Supply Chain members to fully engage in assessing the accuracy of payments and therefore have a responsibility to review their monthly financial reconciliations to identify any inaccuracies.
8.7 Supply Chain partners are responsible for all registration costs and any associated costs of maintaining Direct Claims Status with their awarding bodies.
9. Policy dissemination
9.1 This policy will be disseminated to current sub-contractors via email and a website link.
10. Policy review
10.1 This policy will be reviewed at least annually and in addition in-year as needed to reflect any changes in ESFA funding rules.
11. Policy publication
11.1 This policy will be published on the TDR’s website and is also available upon request.