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Minimum Contract Levels (MCL)
AELP is committed to supporting its members as they make sense of the SFA policy in this area. This topic page is available to members and contains the very latest information for members to enable them to make informed decisions in relation to MCL.
In 2010, the Skills Funding Agency (SFA) announced that a Minimum Contract Level (MCL) would be implemented for the contracting year 2011/2012. The government outlined the initial contracting level at £500,000, with later updates informing providers that exemptions would be considered upon application.
Latest information...
Following the Governments sector wide consultation ‘New Challenges, New Chances’, the Department of Business, Innovation & Skills has published two documents outlining various key changes and opportunities for providers throughout 2012-14. One notable decision is the announcement that the Minimum Contract Level will stay at the £500,000 threshold for the 2012/13 contracting year, with this to be reviewed again next year. AELP would encourage all providers to spend time in reading through these two documents:
Despite the minimum contract threshold staying at £500,000 for the next contract year, the issues and challenges the MCL has brought for many are still very much on the agenda. With the ever increasing demand for providers to make efficiency savings, many providers are looking at collaborative working as a way of making these savings. AELP is seeking to continue to support providers as they explore the various options throughout the following year.
For further details, AELP Members can access the SFA’s Frequently Asked Questions document by clicking here. For information regarding subcontracting and to access the SFA’s subcontractor FAQ document, please follow this link.
AELP research into MCL challenges and support needs for members
In 2011, AELP undertook two LSIS funded research projects seeking to understand some of the changes, challenges and support needs providers were facing in the lead up to the MCL transition.
As part of our latest research, AELP asked providers for any helpful materials that could be shared with the sector. AELP received nine documents kindly shared by four AELP members ranging from Expression of Interest and Due Diligence templates through to model Contract Agreements. These have recently been reviewed, and updated where appropriate, and can now be found below. It is hoped these materials will be useful to providers, whatever their contracting position.
Members can also find below a number of presentations outlining some of the key business model options for providers impacted by MCL or considering entering into a subcontract arrangement.
Downloadable Files
Partnership Agreement template (Skills & Development Alliance) | 243KBShared by kind permission of the Skills and Development Alliance (prime contractor in collaboration with consortium members) Download.
Uploaded: 15 Mar 2012 | Amended 17 May 2012
Performance Management Tool (Hull City Council Training) | 478KBThis tool was designed and kindly shared by Hull Training. SUPPORT: Providers may find it helpful to contact HCCT for advice in how to navigate and make full use of the tool. Please contact Sharon Gamble by email for advice- sgamble@hcctraining.ac.uk Download.
Uploaded: 13 Jan 2012
Contract Agreement template (Hull Training) | 522KBShared by kind permission of Hull City Council Training (prime contractor who has taken on subcontractors) Download.
Uploaded: 7 Oct 2011
Subcontracting Policy outline (Hull Training) | 107KBShared by kind permission of Hull City Council Training (prime contractor who has taken on subcontractors) Download.
Uploaded: 7 Oct 2011
Due Diligence template (Hull Training) | 327KBShared by kind permission of Hull City Council Training (prime contractor who has taken on subcontractors) Download.
Uploaded: 7 Oct 2011
Subcontractor Monitoring template (Babington) | 112KBShared by kind permission of Babington Business College (prime contractor who has taken on subcontractors) Download.
Uploaded: 7 Oct 2011
Subcontractor Due Diligence template (Babington) | 126KBShared by kind permission of Babington Business College (prime contractor who has taken on subcontractors) Download.
Uploaded: 7 Oct 2011
New Provider Assessment Form template (BCTG) | 313KBShared by kind permission of Black Country Training Group (managing agent) Download.
Uploaded: 7 Oct 2011
Provider Expression of Interest template (BCTG) | 105KBShared by kind permission of Black Country Training Group (managing agent) Download.
Uploaded: 7 Oct 2011
Funding Agreement template (Intuitions Ltd) | 423KBShared by kind permission of Intuitions Ltd (ITP now in partnership with other providers) Download.
Uploaded: 7 Oct 2011
Due diligence checklist template (Intuitions Ltd) | 90KBShared by kind permission of Intuitions Ltd (ITP now in partnership with other providers) Download.
Uploaded: 7 Oct 2011
