Supply Chain Fees Policy

Supply Chain Fees and Charges Policy 2016/17

Training 2000 Limited

Purpose and Scope

This document sets out Training 2000’s Supply Chain Fees and Charges Policy for 2016/17. The policy applies to all provision that is sub-contracted by Training 2000 under its contract for services with either the SFA or EFA and replaces any previous versions, where applicable, and is effective from 1st August 2016.

The policy will be reviewed at least annually and will be published on the Training 2000 website, Any changes will be notified to supply chain as appropriate.


Training 2000 is a Provider of services under contracts awarded by both the Skills Funding Agency and the Education Funding Agency.

Some of the provision is delivered via sub-contracted organisation (“the supply chain”).

Prior to joining the supply chain, all suppliers undergo a comprehensive due diligence process and are selected on the basis of their track record, type of provision delivered and location. This helps to ensure that Training 2000 can effectively respond to demand and local skills priorities.

Subcontracting Parameters

Training 2000 will only subcontract in order to meet its strategic aims or where it does not have the technical capability or capacity, for the provision of specialist services which supports core delivery, or where an employer specifically indicates where they require training to be delivered. In the majority of cases subcontractors will only be contracted for the provision of a service and will not have full responsibility for delivery in its entirety. Training 2000 will only subcontract to providers of high quality and who are deemed to be low risk from both a quality and financial perspective.

Overview of Fees and Charges

Training 2000 fees and charges comprise either or both of:

  • A % based management fee of between 10% and 20%
  • Charges for additional services provided

The fees charged / paid will reflect and be dependent on the level of service or support required by the subcontractor. For example, whether the subcontractor is providing the whole of or part of a service / product will determine whether a management fee or a charge for services is applied.

Charges for Additional Services Provided by TRAINING 2000

Each supplier will be supported by Training 2000, which will include regular visits. However, if a supplier falls below the required standard of delivery and therefore, requires additional support, Training 2000 reserves the right to invoice any reasonable additional costs incurred in agreement with the subcontractor

Supply Chain Support and Capacity Building

Management fees are used by Training 2000 to support the supply chain to develop and deliver high quality provision that meet the needs of learners and employers.

Support needs will vary, but can include:

  • A nominated Supply Chain Manager for support, advice and guidance
  • Preparation for External Inspection
  • Safeguarding Training & Consultation
  • Self Assessment & Quality Improvement Support
  • Teaching, Learning & Assessment Observations(inc paired observations)
  • Data Management

Payments to Suppliers by TRAINING 2000

TRAINING 2000 pay suppliers by bank transfer and payment will normally be in accordance with the terms of the subcontract funding schedule (FM/TR387). This will normally be within 30 days of receiving a valid claim for payment which has met the data standards required.

Payment is subject to the receipt of timely claims and supporting evidence of service delivery.

Where funding claims cannot be substantiated, Training 2000 may defer payment until the supporting evidence is provided or reclaim monies already paid.

This policy has been reviewed by the Board of Trustees & Accounting Officer:

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