Sub-Contracting Fees and Charges Policy 2014-15

Introduction

This policy applies to all supply chain activity supported with funds supplied by the Skills Funding Agency or any successor organisation.

Context

All training providers are required to have in place, by the 1 August 2013, a policy on subcontractors prior to any activity. The content of this policy has been developed in line with AELP and SFA funding rules and the LSIS Supply Chain Management documents.

Overarching principles

Lookfantastic will use its supply chains to optimise the impact and effectiveness of service delivery to the end user. Lookfantastic will therefore ensure that:

•Supply chain management activities comply with the principles of best practice in the skills sector. In particular they will be guided by the principles laid out in the LSIS publication “Supply Chain management – a good practice guide for the post-16 skills sector” (Nov 2012 and subsequent iterations).

•Lookfantastic will at all times undertake fair and transparent procurement activities; conducting robust due diligence procedures on potential subcontractors to ensure compliance with the Common Accord in order to ensure that the highest quality of learning delivery is made available and demonstrates value for money and a positive impact on the lives of learners.

•The funding retained by Lookfantastic is related to the costs of the services provided and these services, and the levels of funding being retained for them, will be clearly documented.

•Where disputes between supply chain partners cannot be resolved through mutually agreed internal resolution procedures, Lookfantastic will submit to independent outside arbitration or mediation and abide by its findings.

•All signatories to supply chain contracts must commit to the understanding that all discussions, communications, negotiations and actions undertaken to build, maintain and develop supply chains will be conducted in good faith in accordance with the Overarching Principles

This policy applies to all provision which is sub-contracted and is effective from 1 August 2014. It is currently published on the Lookfantastic website http://www.lookfantastic.com/info/lookfantastic-salon-training.list while the new Lookfantastic Training site is under construction.

Lookfantastic Training Ltd is the lead provider with just over half of the contract value being delivered by the subcontractors while Lookfantastic delivers the rest of the contract without subcontracting arrangements.

All providers have to complete the due diligence process on potential subcontractors to ensure compliance with the Common Accord at all levels and to ensure the highest quality of learning delivery is made available, demonstrating value for money with a positive impact on learners’ lives. The selection of subcontractors is based on the type of provision, their previous history and their location, thus enabling Lookfantastic Training to enhance the opportunities to respond to employer demand and wherever possible meet the local skills priorities.

Contributory risk factors that would result in different fees being charged for support provided to different subcontractors may include

-previous track record

-success levels

-quality of teaching, learning and assessment

-rigour of quality assurance systems and processes

-Ofsted common inspection framework rating

All the management fees will be deducted at source. Allocation will be negotiated prior to the new contract year, depending on the contract volume, available funding and previous year’s performance. Lookfantastic Training will make monthly payments to each subcontractor based on the correct submission of data. Funding claims must comply with the current Skills Funding Agency rules and the terms of the agreement between Lookfantastic Training and the subcontractors.

Lookfantastic will adjust and reclaim funds from the subcontractor and make repayments to the Skills Funding Agency as and when required.