Supply Chain Fees and Charges
In the College’s Strategic plan, we describe our strategy to sub-contract with organisations who are either community-based organisations working with disadvantaged groups or who support the College’s capacity to deliver specialist curriculum e.g Digital or Hospitality. We’re committed to working with Voluntary and Community Sector/Not for Profit organisations to help co-fund their activities. Internally we will work with a range of partner services (internal to the Council). This provision will contribute to the delivery of aims of tailored learning provision.
New Directions College (NDC) recognises the need to offer as diverse range of provision as possible, in as cost flexible and cost-effective way as possible. We acknowledge the following benefits by adopting this approach:
- A more diverse and specialist offer is available
- We can ensure value for money by encouraging co-investment
- Increased participation
- Access to different community groups i.e. more representative of local community
- Able to support/compliment corporate initiatives/priorities e.g. Poverty and Homelessness
- Hub and spoke model results in increased access to Community Learning
- Increased Poundplus (value added) i.e. volunteers
- Develops capacity/infrastructure
- Less likely to duplicate provision already offered.
Our funders the Department for Education (DFE) specify that we must publish a subcontractor and partner fees and charges policy and detail how we should go about maintaining our contractual compliance. All government funded activities are subject to OFSTED Inspection.
How do we commission subcontractors and partners?
New Directions College carries out a 3 yearly commissioning process to engage with its sub-contractors. Bidders apply via the Council’s electronic tendering system called ‘Intend’. The opportunity is advertised on:
- the southeast business portal, https://www.businessportal.southeastiep.gov.uk
- New Directions College website www.newdirectionsreading.ac.uk
- to the members of the Reading Community Learning Network (RCLN).
A panel comprising of council officers, including representatives from New Directions College, representatives from Reading Borough Council and Voluntary and Community Sector (VCS) organisations score all bid applications. Decisions are approved by the College’s governance committee the Community Learning and Skills Advisory Board (CLSAB) subsequently a Decision Book is published and open to challenge via a 10-day standstill period.
Partnerships are established internally to Reading Borough council to meet emerging need/help, and ensure services remain financially viable. These are not subject to a commissioning process as we’re all part of the same legal entity – Reading Borough Council. The Principal may also decide to award pilot sub-contracts with organisations who meet the DFE’s requirements. Values of such agreements will not exceed £9999. Awards will be made as part of standing order delegated authority.
New Directions College’s role and responsibilities
New Directions College is committed to continual improvement in teaching and learning, both in direct provision and in its sub-contracted and partner provision. The quality of the provision will be monitored and managed through the same formalised Quality Assurance processes and procedures. The College’s nominated officer(s) will undertake the management of sub-contracted provision. Our responsibilities include:
- Administration
- Quality assurance and monitoring
- Observations of the Quality Process within each provider with constructive feedback and recommended CPD
- Provision of an MIS system
- Data entry onto the Management Information Systems (MIS) system
- Submitting monthly funding claims to the DFE
- Management oversight (refer to appendix 2 and 3)
- Curriculum planning advice
- Appointed Single Point of Contact
- Regular meetings including a start of academic year briefing to clarify targets and working arrangements/processes.
- Regular feedback on recruitment targets
- Briefings and information concerning the Ofsted inspection framework
- Ongoing due-diligence checks including Health and Safety.
- Staff training e.g. Prevent and Safeguarding
- Ongoing support, guidance and mentoring.
- This is also a networking opportunity for establishing working partnerships
- Use of NDC’s site in South Reading. Rooms are provided free of charge for sub-contractors and partners.
- Setting local policy and processes
- Undertaking Equality Impact Analysis
Membership of the Reading Community Learning Network (RCLN)
The network’s objectives are as follows:
- To empower individuals/volunteers to understand what learning is and the opportunities it presents.
- To improve the planning and joint targeting of funds to disadvantaged and priority groups of learners.
- To widen participation in adult and family learning.
- To map Community learning and identify gaps in provision.
- To discuss and influence policy for the delivery and monitoring of funded Community provision in and around Reading.
- To promote best practice in adult and family learning by providing a platform for reviewing activities and highlighting concerns.
- To develop an Adult and Community Learning Plan for Reading which involves providers of Adult Learning sharing good practice and quality improvement activities.
- To ensure that there is a clear relationship between the partnership and the delivery of local sub regional strategic partnerships.
- To engage as wide range of agencies and organisations in thinking about the activities they offer as learning.
- To review collective performance over the year in ensuring there is a wide range of high quality, challenging and inspiring Community provision locally, and begin to form a view on the impact and social and economic value of such provision.
- To monitor and discuss the success of the reforms using national and local indicators and begin to consider a range of local indicators.
Other relevant policies, procedures or documents
DFE Adult Skills budget, funding and performance management rules 2025-26
Adult skills fund: funding and performance management rules 2025 to 2026 – GOV.UK
OFSTED Further Education and Skills Inspection Handbook
Education inspection framework (EIF) – GOV.UK
Funding and Fees
Strategically the College will not commission more than £20,000. We have based our Tailored Learning fees upon the Single Activity matrix methodology as set-out by government. Therefore, we pay between £350 and £450 per digital course for the Academic Year 2025/26.
In summary, New Directions College’s Tailored Learning funding allocation was used as follows:
|
Delivery |
Percentage of Funding |
|
In-house delivery and expenses including: Operating a dedicated Community Learning site in a deprived neighbourhood. Staffing with responsibilities for Quality Assurance and Contract Management. Direct Delivery including running and operating a Pottery Studio; Pottery Technician and Pottery Tutors. Maintaining other specialist facilities such as Hospitality Suite, ICT suite and Fashion/Sewing studio. Resources and materials and equipment maintenance including IT kit for online learning. Associated teaching costs. Provision of ILR database and associated data entry.
|
90% |
|
Subcontracted and partner delivery |
10% |
Payment
The Council accepts an element of risk as it acknowledges that small organisations will begin to incur costs. All subcontractors will invoice for 50% of the funding awarded as soon as they confirm delivery has started and have supplied the required evidence. Partners will receive a single payment at the end of the academic year. At the end of the academic year the balance (50%) may be invoiced for payment, provided the specified evidence has been supplied on time. The payment can only be actioned if:
- Enrolment numbers of unique learners against targets are confirmed by the College
- All conditions as specified in the tender and subsequent due-diligence activity are met e.g. RARPA documentation has been submitted
If it becomes apparent that a subcontractor may not be able to reach their target as part of the in-year on-going monitoring of learner recruitment, other existing subcontractors and partners will be given the opportunity to exceed their target and receive additional payments for over delivery.
The payment will be made as a grant and hence zero VAT rated, therefore sub-contractors should not add VAT to their staff or services. Reading Borough Council will pay 30 days from invoice date.