The cost reflects the proportion of resources that the College has to use to provide a quality service for the subcontractor as well as ensure our compliance with ESFA funding rules associated with the funding allocation and subcontracting delivery. The cost is proportion accordingly to the level of resource and costs that are required in the terms of administration, management and the process, contractual management, audit compliance monitoring and the quality assurance of the teaching and learning. These activities all support the high-quality delivery of the College partner.
The subcontract will meet the agreed educational needs in relation to the delivery of Traineeship provision and it is deemed affordable and achievable upon review. Possible alternatives have been considered but not suitable and if the continuation of the Traineeship provision with TNB Skills Training was not able to take place, subcontracted provision would immediately cease at LCBT and formally reviewed for subsequent academic years. Contingency plans for subcontracts can be found within LCBT’s Business Continuity Plan/Policy and LCBT’s Subcontracting Policy.
The Subcontracting Rationale is reviewed annually in the month of July. Next scheduled review is for 2025.
The subcontract will meet the agreed educational needs in relation to the delivery of 16-18 study programmes provision and it is deemed affordable and achievable upon review. Contingency plans for subcontracts can be found within LCBT’s Business Continuity Plan/Policy and LCBT’s Subcontracting Policy.
No additional subcontracting services will be required in addition to those specified and contained within the Subcontracting Rationale for the 2024/25 academic year.
To view the full approved and signed copy of LCBT’s Subcontracting Rationale for the 2023/24 academic year, please click HERE.
Subcontracting information are submitted directly to the ESFA (Education & Skills Funding Agency) and publicly published by the ESFA here: https://www.gov.uk/government/publications/sfa-subcontractors-list
Requests for subcontracting opportunities is now closed for 2024/25.
The London College of Beauty Therapy Ltd (LCBT) is committed to expanding and diversifying the range of curriculum programmes that complement and widen our own curriculum offer and diversify the range of opportunities to re-engage young people and adults in learning and training. Working with high quality partner organisations and nurturing quality smaller training providers allows the College to achieve this goal and ensures that quality provision can be delivered to a wider geographical area, increasing, enhancing participation and the employability of learners. To ensure and provide some initial assurance, LCBT expects all potential subcontractors to be included on the Education Skills Funding Agency’s Register of Training Organisations and successfully pass an initial prequalifying questionnaire and subsequent due diligence process including having their capability to deliver programmes assessed before applying for a subcontractor through LCBT. LCBT only subcontracts the provision of full programmes which are classified as ‘Provision Subcontracting’.
The policy applies to all subcontracted partner organisations and training providers.
LCBT will support the quality of teaching and learning of partner organisations and training providers through the development and sharing of good practice; curriculum and quality reviews; observations of teaching, learning and assessment, together with analysis of learner and employer feedback.
In compliance with the Education and Skills Funding Agency (ESFA) and other agency funding rules that apply, the College will publish its subcontracting fees and charges policy on its website before the start of each academic year (and in the case of actual end of year data, as required by ESFA). LCBT will only provide ‘provision subcontracting’ and therefore the policy will only relate to ‘provision subcontracting’ i.e. subcontracted delivery of full programmes or frameworks. The policy will not include the delivery of a service as part of the delivery of a programme (for example, buying the delivery of part of an Apprenticeship framework or outreach support). The College will ensure all actual and potential subcontractors have sight of this policy and any other relevant documents.
Our overall rates of subcontracting for the academic year 24/25 will normally be 15% of the funding received which would be provided to the subcontractor for the delivery of the subcontract. Variations can apply, this will depend on the level of support required for each subcontract and the potential risk. Some subcontracts may contain performance related criteria, where if not met, may decrease the amount of funding the subcontractor may receive. This is both to promote quality provision and to compensate for possible negative consequences to future funding for LCBT. All subcontractors are made fully aware of this before agreeing and commencing subcontracted provision.
Below is an example of a typical breakdown of the specific costs in relation to a 15% subcontractor management cost to support and manage the subcontracted provision.
Service Provided: Managing the Subcontractor
Specific Cost: Contract Management 2% & Process Administration 6%
Reason why cost is reasonable and proportionate to delivery of the subcontracted teaching or learning and how much each cost contributes to delivering high quality learning: The cost reflects the proportion of resources the College has to use to provide a quality service for the subcontractor in terms of administration, management of the process, contract and audit.
Service Provided: Quality Monitoring Activities
Specific Cost: Quality Monitoring 4% & Compliance 3%
Reason why cost is reasonable and proportionate to delivery of the subcontracted teaching or learning and how much each cost contributes to delivering high quality learning: Compliance monitoring and the quality assurance of the teaching and learning. The activities all support the high-quality delivery of the College partner.
The cost reflects the proportion of resources that the College has to use to provide a quality service for the subcontractor as well as ensure our compliance with ESFA funding rules associated with the funding allocation and subcontracting delivery. The cost is proportion accordingly to the level of resource and costs that are required in the terms of administration, management and the process, contractual management, audit compliance monitoring and the quality assurance of the teaching and learning. These activities all support the high-quality delivery of the College partner.
This figure represents the cost that the London College of Beauty Therapy (LCBT) incurs in effectively identifying, selecting and managing each specific sub-contracted provision. The cost covers the additional support LCBT deems necessary to ensure the quality of education and training, including the administration, processing, auditing and support provided in relation to the information provided, as well as periodic reviews/meetings. It also takes in to account any negative effects in relation to funding to LCBT that supporting a quality subcontract may occur.
We pay our subcontractors within 30 days of invoice issued, normally by the 28th of each month. Certain delivery programmes as part of a subcontract may have different payment criteria based on the agreed contract which may include payment upon achievement of objectives/goals or payment made at end of programme upon receipt of all required information and evidence.
In the event of a subcontractor withdrawing from the arrangement under any circumstance, or if a subcontractor goes in to liquidation or administration, in compliance with the ESFA funding rules that apply, LCBT will undertake direct management and delivery of the remainder of the agreed provision already being delivered. The delivery will continue through one of two methods:
The decision will be based on a review of viability, maximum opportunity for the existing learners to complete their programmes and cost-effectiveness. Any provision that has been planned but started will be cancelled and on the completion of the existing learners, the learning programme closed.
If in the event that LCBT need to withdraw itself from a subcontracting arrangement, sufficient notice will be provided to allow the subcontractors to complete the delivery of the current existing provision. In this event LCBT will provide:
All actions would be undertaken with our any prejudice to the existing enrolled learners and/or staff.
Contracts clearly state the conditions of termination and recovery of ESFA funding in the case of any parties withdrawing from delivery/subcontract arrangement.
