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Lancashire Enterprise PartnershipGrowth Deal Skills Capital Fund
Round 2 Investment 2016 - 2017
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Contents
1. Introduction2. Economic Context
2.1. Outcomes3. Skills and Employment Strategic Framework
3.1. Skills and Employment Strategic Framework - Overview4. Skills Capital Funding
4.1. Key Investment Principles4.2. Eligibility Criteria4.3. Process4.4. Timescales
5. Expression of Interest Guidance 5.1. Requirements5.2. Appraisal Criteria
6. Detailed Application Guidance – Fast Track6.1. Requirements 6.2. Appraisal Criteria
7. Grant Funding Arrangements and Project Monitoring8. Post-Occupancy Evaluations
Appendix 1: Expression of Interest Application Form
Appendix 2: Detailed Application Form
Appendix 3: Grant Funding Agreement
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1. Introduction
The Lancashire Enterprise Partnership (LEP) is now looking to invest in skills capital projects for delivery in 2016-17. This is the second round of a £30m Skills Capital Programme which was secured as part as the Lancashire Growth Deal, whereby the LEP has a direct responsibility for setting the strategic direction for skills capital investment within Lancashire. Round 2 of the programme will seek to allocate the remaining £12.6m to projects which will improve Lancashire's skills infrastructure.
The priorities for investment, as outlined in this document, align firmly with the Lancashire Strategic Economic Plan (SEP). The focus is to invest in state-of-the-art training facilities and equipment which will demonstrably contribute to the economic growth of the county, ensuring Lancashire skills providers have the capacity and capability to meet business demands and thereby provide a workforce which is relevant and meets current and future labour market needs.
The skills ambition of the LEP is to ensure our future and current workforce has the skills which will enable businesses to grow. The LEP believes that by taking a strategic approach to the allocation of skills capital funds, investment will be made in those facilities that are able to demonstrate a local economic and business need. By investing in state of the art facilities and equipment, Lancashire businesses will not only have access to a skilled workforce entering the labour market, but also access to a more responsive and flexible skills system which can provide up to date training for their existing workforce thus encouraging more investment in training. This will result in improved business performance, job creation, an increase in new businesses starting up and a reduction in unemployed and young people who are NEET (Not in Education, Employment, or Training).
This Prospectus has been developed in partnership with the Skills Funding Agency (the Agency). The prospectus is aimed to advise eligible skills providers (defined in section 4.3) within Lancashire on the key priorities, the application process and the assessment criteria for Round 2 of the Skills Capital Fund for Lancashire. Applicants are advised to read this prospectus carefully before submitting a project.
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2. Economic Context
Lancashire has one of the largest local economies in the North of England, valued at over £23 billion, is home to over 40,000 businesses employing in excess of 600,000 people, and has a population of 1.4m. A large and multi-faceted area with a diverse geography, the county boasts a rich industrial tradition, set within a network of densely populated urban centres which are themselves surrounded by outstanding countryside and coastal fringes.
Although Lancashire has experienced sustained growth in the last decade, with readily identifiable economic 'hotspots' such as the cities of Preston and Lancaster, the area's average performance still consistently lags behind that of the UK and neighbouring city regions.
Today, the economic performance of Lancashire is more than 20% below the national average, in terms of GVA per resident. Without strategic interventions Lancashire's GVA gap with the rest of the country is predicted to increase. This will exacerbate the existing long-term trend and further deepen Lancashire's productivity and income gaps. If Lancashire is to maximise its economic potential it will need to fully exploit its key innovation, skills, sector base and transport assets.
The overarching purpose of the SEP and Growth Deal is to re-establish Lancashire as an economic powerhouse and a national centre of excellence in advanced manufacturing by maximising its clear competitive strengths and capabilities in the aerospace, automotive, energy and health science related sectors. Lancashire's Growth Deal will restore more rapidly Lancashire’s ability to compete in the international marketplace for new investment, jobs, learners and visitors.
The Growth Deal is specifically designed to address key barriers to growth and establish for the first time a transport investment programme, under the direction of TfL, commensurate with Lancashire's economic and housing growth opportunities and challenges. This investment programme will ensure key locations can fulfil their potential as growth corridors and major industrial, commercial and transport hubs for Lancashire as well as neighbouring economies. It will also maximise the connectivity opportunities afforded by new national and regional initiatives, including HS2, Airport City, Media City UK, Northern Hub, Atlantic Gateway and Liverpool SuperPort.
Partners are working harder to unlock constrained growth opportunities in all parts of Lancashire to create a more balanced economy, especially in terms of re-establishing the local growth trajectories of East Lancashire and Blackpool. The LEP's work to bring forward high quality opportunities consistent with market requirements indicates East Lancashire can grow its existing advanced manufacturing clusters and attract new industrial occupiers, if there are significant improvements in the local transport infrastructure.
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The arc of prosperity1 currently generates around 75% of Lancashire's wealth and provides the primary focus of our economic and housing growth plans. The SEP therefore concentrates economic activity and Growth Deal investment in this arc. It signals where the new jobs and housing growth in Lancashire will ostensibly be generated, supported by key economic and transport interventions. More than 90% of the county's forecast additional employment opportunities will be located on sites, and at locations, within the arc. Almost all of the county's large single-site housing development schemes are also within the arc. Delivering the arc of prosperity is central to achieving the LEP's strategic vision, providing a platform from which the SEP's strategic objectives and priorities can be clearly articulated.
2.1. OutcomesBy concentrating focus on Lancashire's competitive strengths and capabilities, tackling major infrastructure constraints, boosting the business base, and refocusing the approach to skills, the LEP will establish new economic opportunities that can deliver: • 50,000 new jobs; • 40,000 new houses; and • £3 billion additional economic activity, above the local trend rate2
In achieving these challenging outcomes, Lancashire's employment rate would out-perform the UK average and the value of the local economy would rise by an additional 10% over the next decade. This would help to reduce Lancashire's national economic performance gap by 50%.
The LEP is fully committed to harnessing the local delivery capacity of private and public sector partners to achieve these outcomes and good progress is already being made. Our Growth Deal priorities individually and collectively contribute to achieving these ambitious outcomes.
1 For further detail see Lancashire's Strategic Economic Plan: http://www.lancashirelep.co.uk/about-us/priorities/lancashire-strategic-economic-plan.aspx 2 Over the lifetime of the Strategic Economic Plan.
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3. Skills and Employment Strategic Framework
The LEP has a major opportunity, through the Growth Deal to accelerate change and promote greater strategic integration of resources to deliver national and local priorities. A Skills and Employment Strategic Framework has been developed for Lancashire, based on a robust analysis of the skills and employment issues in Lancashire and six sector studies focusing on areas of high replacement demand and growth potential:
Advanced Manufacturing; Energy and Environmental Technologies; Creative and Digital; Health and Social Care; Finance and Professional Services; and Visitor Economy
In addition a skills and employment study has been commissioned by the City Deal Executive highlighting the critical skills and employment issues in the Construction Industry. The framework is due to be finalised shortly following consultation.
It is intended that the Strategic Framework will inform and underpin the investment decisions made in relation to discretionary funding (for example, ESIF funding and Growth Deal Skills Capital) and influence the use of mainstream skills and employment budgets. Providers making use of these budgets in Lancashire will be invited to set out how their delivery will contribute to achieving the Framework’s priorities.
The provision of training needs to take account of both the challenges in supporting employment growth and the need to strengthen the existing business base through a better skilled workforce. The emerging priorities are:
Young People’s attainment: improving the attainment rate of schools students to match the national average, with a focus on those schools where students are seriously lagging behind.
Careers Advice and Guidance: provision of advice and guidance to young people and adults, underpinned by robust labour market intelligence, highlighting the career opportunities in the County and employability in a changing economy.
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Apprenticeships and vocational training: increasing the number and quality of apprenticeships and encouraging greater levels of provision at a higher level, reaching more employers in sectors with high replacement demand and growth.
Graduate and Higher-level skills retention: developing new and innovative mechanisms including increasing internships and graduate placements across the Lancashire business base, increasing the number of workers with higher level skills.
Construction: given the need to complete major infrastructure works and increase residential development, develop new initiatives to address requirements and skills changes in construction and increase the number of partnerships in skilled trades.
FE and Skills Provision: working with Further Education Colleges, private providers and employers to target vocational training opportunities at areas of high replacement demand and genuine employment growth.
Employer engagement: there is a need to increase employer engagement in skills, and encourage greater commitment to workforce development, as well as encouraging employers to work with education providers to influence vocational provision and design curriculum that is fit for purpose.
Employability: there is a need to increase efforts to link young people and those seeking employment with the regular opportunities made available through replacement demand, and tackle employability issues before they become entrenched by reducing the number of young people becoming NEET, and working with those at risk of redundancy to re-train or transfer their skills to other sectors / employers.
Work Programme: Lancashire needs a more effective Work Programme capable of generating higher than average outcomes for local residents.
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3.1. Lancashire Skills and Employment Framework – OverviewTheme Objectives OutcomesFuture Workforce
1. To increase school attainment levels in areas of concern in Lancashire through the 'Careers Inspiration' agenda.
2. To co-ordinate and improve the Careers Education, Information, Advice and Guidance (CEIAG) offer to people in schools, colleges, providers and universities and increase engagement with STEM subjects, vocational pathways and routes into key LEP sectors and areas of high replacement and growth demand.
3. To improve vocational pathways from classroom based provision to higher level work-based provision.4. To increase graduate retention in Lancashire by improving engagement with employers during and after
programmes of learning (e.g. work based projects, placements and internships) and by improving the attractiveness of Lancashire to ambitious and aspirational graduates.
5. To reduce current skills shortages (teachers, tutors and lecturers) by increasing engagement of employers in co-delivery and sharing of staff across providers.
6. To improve employability and enterprising skills, attitudes and behaviours across the education journey.7. To improve and ensure that post-16 education and learning facilities are fit-for-purpose and that
responsive and flexible approaches are taken (e.g. blended learning).
1. Reduction in Lancashire unemployment and NEET figures.
2. Less reported vacancies / skills shortages in key LEP sectors and areas of high replacement demand and growth.
3. More Lancashire residents skilled at Level 3 and above.
4. Increased social mobility in disadvantaged areas.
5. Improved school attainment levels in under performing schools across Lancashire.
6. A greater number of graduates choosing to work in Lancashire.
7. Less reported skills shortages in providers (teachers, tutors and lecturers).
8. Greater number of apprenticeships at L3 and above.
9. Greater number of employers offering graduate level jobs and investing in skills.
Skilled and Productive Workforce
1. To increase the number of apprenticeships (including higher level and degree) in areas of high replacement demand and growth.
2. To increase the number of companies in Lancashire offering graduate-level and professional jobs, and attract new businesses likely to recruit higher skilled people.
3. To increase the number of employers undertaking workforce/succession planning and investing in skills.4. To improve the provision of sector-specific training to tackle skills shortages in LEP priority sectors.5. Raise the capability of SMEs to grow through leadership and management interventions.
Inclusive Workforce
1. To improve the employability and skills of unemployed adults and NEET young people to enhance job prospects, particularly in areas of high replacement demand and growth.
2. To provide relevant labour market information (LMI) and CEIAG to support decision making.3. To facilitate routes into employment through sector specific initiatives, for example, Sector Based Work
Academies.An Informed Approach
1. To create a 'skills observatory' for Lancashire that will maintain the skills and employment evidence base and an oversight of relevant policy.
2. To facilitate 'Sector Skills Development Partnerships' that will drive the implementation of sector specific action plans.
3. To connect and collaborate with other LEP areas to influence 'mainstream' provision (e.g. CEIAG), collaborate, and to share good practice.
4. Skills Capital Funding
A total of £30m Skills Capital Funding (SCF) was secured through the Lancashire Growth deal over a two year period. £12.6m of the funds remain to be allocated against the 2016-17 financial year.
The vast majority of funding currently available needs to be allocated and spent before the end of financial year 2016-17, therefore priority will be given to those skills providers that spend within 2016-17.
The LEP will be using the Agency’s officers to assist with the assessment process. Applicants should not assume that the LEP or the Agency will have any specific knowledge of the applicant and its locality. The LEP will judge the relative strengths of each proposed project against the criteria outlined in this prospectus alongside the advice from the Agency. If the demand for the budget outstrips supply, applications will be prioritised on the basis of the highest scores and the budget available.
The applications should pay due regard to the Public Sector Equality Duty. Among other requirements, the Duty requires you to take positive steps to ensure that disabled students can fully participate in the education and other benefits, facilities and services provided. In particular, when completing the capital application, you should take account of how you will take all reasonable steps to avoid any disadvantages which a disabled learner may experience because of their disability.
4.1. Key Investment Principles
To ensure that the SCF best supports the implementation of the Skills and Employment Strategic Framework and supports the priority sectors, the LEP has agreed the following key investment principles.
The skills provider must demonstrate:
and provide evidence that they are responding to a growth opportunity, replacement demand or a lack of provision across Lancashire.
that the project will contribute to the Skills and Employment Strategic Framework and support the priority sectors.
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how the project will address the issue, including clear and quantified targets / benefits / measures as appropriate. These should be achievable and the LEP will carry out a sense-check.
how their proposal will interact with other provision, how it will compliment, add value and why it is required. If there is no evidence that there is an investment need and/or the investment would lead to displacement and excess capacity the LEP will not support the project.
how they are supported by and engaged with employers. Wherever possible the LEP wishes to see employers co-investing in projects and/or providing in-kind contributions to projects.
The minimum project value will normally be £1m for the SCF. However the LEP will accept projects below this amount if the project relates to the purchase of equipment only. The minimum value for equipment only projects is £250,000.
Normally, we will expect skills providers to provide a minimum funding contribution equivalent to two-thirds of project value. That is, for every £1 from SCF, providers should normally invest an additional £2. Where it is not feasible to provide the required match funding, this should be identified at the Expressions of Interest stage.
Applicants unable to meet the minimum funding contributions are required to demonstrate a compelling business case for enhanced public subsidy. A compelling case requires the project to achieve high scores in the benefits to learners, employers and supporting economic growth section.
The LEP recognises that some providers may have more than one project that meets the criteria and, in recognition of this, each eligible skills provider may submit more than one Expression of Interest (EOI). Skills providers submitting more than one EOI need to prioritise the applications clearly.
The Grant Funding Agreement (GFA) in Annex 3 will be used for all approved projects therefore it is recommended that applicants read the GFA thoroughly prior to submission. The information submitted by the Skills Provider in the Expression of Interest form and Detailed Application form will determine the grant payment profile in the Grant Funding Agreement.
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4.2. Eligibility Criteria
Applicants must be educational institutions that:
are on the Skills Funding Agency's register of training providers; and are physically located within the LEP’s geographic area.
Projects must be complete and operational by September 2017, ready for the 2017/18 academic year. We will not normally consider as eligible sectional completion of parts of larger projects due to be completed beyond this timescale, unless they refer to stand-alone sub-projects that will be fully operational in the required timescale. If skills providers have any doubts regarding the potential eligibility of a project, they should discuss this with the Skills Hub.
We will not consider as eligible proposals involving work that would normally constitute the usual summer works, or planned maintenance and redecoration.
In all cases, providers must procure consultants and contractors in accordance with European Commission (EC) Procurement Directives.
The LEP reserves the right to delay assessment of application(s) where it is advised by the Agency or aware of any issues that could impact on the delivery/potential outputs of the capital project for example, but not limited to, where a skills providers may subject to or be undertaking a Structure and Prospects Appraisal with a view to possible dissolution and/or merger with another provider.
The applicant must provide information at the Expression of Interest stage and Detailed Application stage to enable the LEP to make an assessment as to whether capital funding payable under this scheme could amount to unlawful State Aid. Should the European Commission decide that funding amounts to State Aid, which is incompatible with the common market, and decides that the funding is to be recovered, a condition of grant will be that the applicant is required to repay the SCF funding to the LEP without set-off or deduction (plus interest). All successful non-FE colleges will be required to complete and return a State Aid Deed to the LEP.
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4.3. Process
The SCF is available on a competitive basis.
There is one EOI form and one Detailed Application form for all types of project. The LEP will accept below £1m and above £250,000 if the project relates to the purchase of equipment only. All other projects should be above £1m.
If a skills provider is submitting more than one Expression of Interest, they must prioritise their projects.
There are two available routes for all project applications:
1. Standard route - Expression of Interest deadline is 2nd November 2015 and Detailed Application deadline is 16th February 2016.
2. Fast-track route - Expression of Interest and Detailed Application deadline are both 2nd November 2015.
It is the decision of the skills provider whether they wish to take the Standard route or the Fast-track route for their project application.
The Fast-track route may be suitable for those skills providers with a sufficiently developed Detailed Application. The benefit of the Fast-track route is that, if the applicant is successful at the EOI stage the process of assessing the Detailed Application form begins immediately, therefore successful Detailed Applications will be announced approximately 2 months earlier that if an applicant takes the Standard route (see timescales in the following table in Section 4.4).
However, if skills providers take the Fast-track route they do so at their own risk and any professional costs associated with this process will be at the applicants own cost.
In taking either the Standard route or the Fast-track route the process and timescales remain identical up to the point when the successful Expressions of Interest are announced.
The submission of a Detailed Application at the same time as the EOI does not affect the scoring at the EOI stage, it is purely a means of Fast-tracking the process should the EOI be successful.
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4.4. Timescales
Applicants are reminded that all projects must be complete and operational by September 2017, ready for the 2017/18 academic year.
Date Action14th Sep 2015 Launch of Skills Capital Funding21st Sep 2015 Engagement Event2nd Nov 2015 'Standard' Process - Deadline for skills providers to submit
Expressions of Interest.
'Fast-track Process' - Deadline for skills providers to submit their Expression of Interest AND their Detailed Application
18th Dec 2015 Target date for confirmation and announcement of outcomes of all Expressions of Interest.
Standard Process Fast-track Process22nd Dec 2015 Detailed Application launch for
those who have been successful at EOI stage.
8th Feb 2016 Target date for confirmation and announcement of outcomes of 'Fast-track' Detailed Applications for those who have been successful at EOI stage.
16th Feb 2016 Deadline for skills providers to submit Detailed Applications.
11th April 2016
Target date for confirmation and announcement of outcomes of 'Standard' Detailed Applications for those who have been successful at EOI stage.
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5. Expression of Interest Guidance
5.1. Requirements
Organisations need to complete Expressions of Interest (EOI) using the EOI application form in Annex 1. The sections in the EOI application form align with the criteria that the LEP will use to assess which EOI will proceed to a Detailed Application.
Applicants must read the guidance carefully to ensure they complete all parts of the application form relevant to their educational institution and their project, depending on whether the project is equipment or non-equipment related.
We will assess EOI only on information submitted in the required format, however it may be validated against financial and estates related information already held by the Agency.
The following must be received by 1:00pm on 2nd November 2015.
1. One electronic copy of the signed and completed Expression of Interest form (see Annex 1) and the following required supporting information, at the email address below:
Investment Appraisal for proposed project Agency template here: https://www.gov.uk/government/publications/sfa-capital-funding-investment-appraisal-template
Financial plan and commentary:- FE Colleges use - https://www.gov.uk/government/publications/financial-planning-handbook - Non-college training organisations use simplified financial plan and guidance - (https://www.gov.uk/government/publications/sfa-capital-funding-support-for-leps)
Supporting evidence for any third-party project funding
Please compress files to less than 5Mb. If you have any difficulties sending the email(s) please call Lisa Moizer on 07825996447.
2. Also one hard copy of the signed and completed application form and the required supporting information to the address below.
Lisa Moizer, Skills Hub Coordinator, Lancashire Enterprise [email protected]
Lancashire College, Southport Road, Chorley, Lancashire. PR7 1NB
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Without exception, we will not consider as eligible for the Skills Capital Fund (SCF) any applicants that fail to submit both an electronic copy and hard copy of a signed and completed Expression of Interest form together with supplementary information in accordance with the submission requirements. Applicants must submit Expressions of Interest and supplementary financial information using the correct application forms and templates referred to in this prospectus which are all on the LEP’s website, http://www.lancashirelep.co.uk/lep-priorities/skills.aspx
Applicants must qualify any assumptions made in terms of learner volumes and quantify any proposed outcomes, including information on how they will be achieved.
Supporting evidence you may wish to include would be for example:
As appendices, any letters of engagement from employers, including detail regarding how they will contribute to and benefit from the proposed project;
You may also wish to make reference in the EOI narrative:
Clear gap and competitor analysis of how the project will address genuine market opportunities for skills delivery on a Lancashire level;
Independent survey reports regarding the need for major maintenance works; Appropriate supporting learner feedback from the satisfaction surveys regarding
required improvements to the quality of the learning environment; Feedback from Ofsted on improvements required to existing learning environments
to help improve results; and Any relevant statistical information and information on current learner performance
– success and achievement rates – where appropriate.
Applicants must also note the following:
Project Funding/Finance Spend Profile: This form must be completed in government financial years, April to March. The expenditure profile submitted will be the profile that the applicant will be held to if the project is approved and will determine the grant payment profile in the Grant Funding Agreement.
A risk management plan: required for projects over £1 million, or 25 per cent of turnover, or where a college’s financial health calculated or Agency assessed grade is Inadequate at application date, to demonstrate that risks will be adequately managed.
Key Milestones and Timings: The applicant will be held to the milestones and timings submitted if the project is approved and will be determine this element of the Grant Funding Agreement.
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Metrics, Outputs and Outcomes: The applicant will be held to the metrics, outputs and outcomes submitted if the project is approved. The metrics, outputs and outcomes will form part of the Grant Funding Agreement.
Assessment of applications will be based only on the information submitted in the required format; however it may be validated against financial and estates related information already held by the Agency. The LEP cannot guarantee that it will consider at the assessment stage any information provided which is in addition to that listed above.
The application form states the permitted words allowed in each section. Skills Providers must adhere to the word limit; we will not consider information provided over and above the word limit. Skills providers are advised to provide focused and succinct responses, supported by robust, quantifiable and achievable information (particularly in the benefits to learners, employers, local community and supporting economic growth sections).
5.2. Appraisal Criteria
Lancashire Enterprise Partnership will use the following criteria to ensure applications align to local economic growth opportunities and the educational needs of learners as set out in the prospectus.
Each EOI will be assessed on the basis of the information that is provided on the EOI template. It should not be assumed that those assessing on behalf of the LEP will have any specific knowledge of the provider and its locality.
The LEP will be supported by the Agency with its assessments and provide technical assessments relating to estate need, value for money and affordability.
Gateway CriteriaAs an essential requirement for an application to progress beyond the gateway, all proposed projects submitted for consideration must as a minimum demonstrate to LEP's satisfaction that it is:
1. Able to meet the eligibility criteria set out in Section 4.2.;2. Provides sufficient information for the application to be assessed, in line with
Benefits to Learners, Employers and Supporting Economic Growth, Estate Need and Financial Assessment sections of the guidance note and application form.
Applicants must address the above two gateway criteria with their application to be considered for grant assessment under the Skills Capital Fund.
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Main CriteriaThe LEP will judge the relative strengths of each proposed project against the criteria outlined below. See EOI application form for further guidance.
i. Benefits to Learners, Employers and Supporting Economic Growth (Section 3)
The proposed project needs to be of tangible benefit to learners, employers and support economic growth. The application needs to explain how the project meets this criteria.
The project will be scored according to the extent to which each proposed project will benefit learners, employers and support economic growth. It is up to each skills provider how it presents the required information, but to a maximum word limit of 1250 words.
Within this section points will be allocated to how the projects will impact upon each / show evidence of:
1. Benefits to employers including evidence of co-investment, in-kind contributions and sponsorship.
2. Supporting economic growth including alignment with the LEP priority sectors, evidence of skills shortages.
3. Benefits to learners including impact on unemployment, NEETs, learner progression and pathways to higher learning.
4. Supporting apprenticeships in particular demonstrating how the project can increase apprenticeships with a focus on higher level skills.
5. Evidence of added value or complementarity with other provision and projects. Demonstrate that it does not duplicate existing provision.
ii. Estate Need (Section 4a) and Equipment Need (Section 4b) – the proposal should demonstrate the extent to which the project addresses key issues, including:
Relevance to Property Strategy: projects should be driven by the strategic objectives of the skills provider and be part of a clear adopted property strategy for the provider.
Rationalisation and Efficiency: improving space which is inefficient and unfit for purpose, reducing operating costs, driving efficiencies and creating space which is versatile, fit for purpose and tolerant to change.
Renewal and modernisation of the FE estate through the reduction of floor space in poor/inadequate building condition.
Insufficient space and therefore new build requirement. Need for investment in equipment.
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Renewal and modernisation of equipment to ensure facilities are continuing to provide training relevant to the changing and evolving workplace.
iii. Financial Assessment (Section 5) – applicants will need to demonstrate that the proposed project represents value for money and that it is affordable.Organisations need to confirm:
How they intend to fund the proposed project, for example through loan finance, disposal proceeds and cash reserves.
That the project has a better net present value (NPV) than an alternative option.
The anticipated spend profile in the financial year 2016-17. Applicants need to make this information as accurate and robust as possible, as the LEP will rely on this information when assessing the demand for grant against the amount of grant funding the Agency has available to allocate in 2016-17.
The efficiency savings that the proposed project will deliver. How the project will address the sustainability agenda.
Prioritisation of EOITo be successful, all EOIs need to pass the gateway appraisal. Projects will then ranked/prioritised against all projects passing the gateway according to the overall number of points scored against the EOI criteria i. Benefits to learners, employers and supporting economic growth, ii. Estate need; and iii. Financial assessment.
There will be a set minimum number of points required for a successful EOI. As stated above, organisations requesting grant support in excess of one-third will be required to submit a compelling business case with high scores in the three sections listed above.
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6. Detailed Application Guidance – Fast-track
6.1. Requirements
Important please read: This guidance sets out the process for submitting a Detailed Application via the Fast-track process.
At the skills providers own risk they may take the Fast-track route and submit a detailed application along with their Expressions of Interest (EOI). All the EOIs will be assessed at the same time. If an EOI is successful it will be included in the indicative SCF allocation. Inclusion in the indicative allocation does not guarantee funding. The LEP's formal allocation of SCF allocations will be dependent upon the LEP’s detailed appraisal of applicants’ detailed application.
If a skills provider takes the Fast-track route, and their EOI is successful, then the LEP and the Agency will begin to assess those Detailed Applications immediately.
Applicants must read the guidance carefully to ensure they complete all parts of the application form relevant to their educational institution and their project, depending on whether the project is equipment or non-equipment related.
The following must be received by 1:00pm on 2nd November 2015.
1. One electronic copy of the signed and completed Detailed Application form and the following required supporting information, at the email address below:
Completed Cost Breakdown form, where applicable (SFA capital: cost breakdown analysis form)
Investment Appraisal for i) proposed project and ii) base case (SFA capital: investment appraisal template)
RIBA Stage 2 design information to include sketch plans and elevations where applicable
Detailed flow chart (for example a Gantt chart) setting out the project programme Financial risk-management plan where applicable Financial plan and commentary:
- FE Colleges use - https://www.gov.uk/government/publications/financial-planning-handbook- Non-college training organisations use simplified financial plan and guidance - (https://www.gov.uk/government/publications/sfa-capital-funding-support-for-leps )
Minutes confirming governing body/board approval for the project Supporting evidence for any third-party project funding
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Supporting valuation for any property acquisition/disposal, with heads of terms provided where appropriate
Adopted estate strategy for FE Colleges or a statement of need in respect of non FE Colleges
Please compress files to less than 5Mb or send several emails. If you have any difficulties sending the email(s) please call Lisa Moizer on 07825 996447
2. Also one hard copy of the signed and completed application form and all the required supporting information at address below.
Lisa Moizer, Skills Hub Coordinator, Lancashire Enterprise Partnership
Lancashire College, Southport Road, Chorley, Lancashire. PR7 1NB
Without exception, we will not consider as eligible for the Skills Capital Fund any applicants that fail to submit both an electronic copy and hard copy of a signed and completed EOI and Detailed Application form, together with supporting information in accordance with the submission requirements set out in the Lancashire Enterprise Partnership Skills Capital Funding prospectus. To be eligible for the Skills Capital Fund, applicants must submit Detailed Applications and supporting information using the correct application forms and templates referred to in this prospectus which are all on the LEP’s website, http://www.lancashirelep.co.uk/lep-priorities/skills.aspx
Guidance on how to complete the application form is included within the form itself, with applicants required to overwrite application information. Colleges are required to keep answers brief and to the point – guidance is given in the application form for length of responses (word limits).
The following should also be noted whilst completing the application:
Social Value: In accordance with the Grant Funding Agreement clause 19.4 'to the extent that is compatible with EU Procurement Requirements, the Applicant (and sub-contractors) shall ensure that the Social Value Act 2012 is observed in any procurement processes' please state how you will integrate Social Value Act into your procurement processes the delivery phase of the project.
RIBA Work Stage 2: Before submitting a detailed application, skills providers will need to develop proposals up to the stage where they can identify and cost their extent properly. As a minimum, this should be to Royal Institute of British Architects (RIBA) Work Stage 2 (stage
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C) or equivalent with supporting sketch plans and cost plans. Skills Providers must be able to commit to a firm budget and demonstrate relevant certainty and ability to deliver the project to timescale; skills providers may therefore decide to develop projects beyond RIBA Work Stage 2 (stage C) before submitting a detailed application to reduce project cost and deliverability risks. Skills providers are reminded that the LEP will not in any circumstance provide increased capital grant should project costs exceed the approved amount or fall outside the specified LEP financial year.
Project costs: the application will need to include one cost breakdown analysis form for the overall project but colleges are requested to provide separate forms to support this where more than one set of building works is proposed. Where projects are in excess of the Agency’s cost benchmarks, skills providers must provide a detailed explanation to justify the additional costs and to demonstrate that the project still represents value for money. The LEP may decide not to provide SCF to projects which are more than 5 per cent in excess of the Agency’s cost benchmark unless adequate justification of the additional costs is provided.
BREEAM: Projects are expected to achieve high levels of environmental performance. Proposals will be expected to achieve a Building Research Establishment Environmental Assessment Method (BREEAM) ‘excellent’ rating for new build and ‘very good’ for refurbishments. Projects put forward for the SCF are expected to demonstrate a high standard of design and learning environment.
Sustainability Requirements: Projects are expected to address the sustainability agenda in relation to its estate. Make specific reference to work it may be involved in such as achievement or, or work towards recognised Environmental Management Systems, carbon/energy reduction and so on. Explain how the proposed project links to/is aligned to the applicant's sustainability strategy.
Investment Appraisal and Running Costs: applications will not be approved where no base case investment appraisal is submitted in the application. The application will need to include comprehensive investment appraisals, including assumptions (using the Agency’s latest template) in respect of both the base case (do the minimum) and preferred options.
Project Funding/Finance: a financial plan is required from all Skills Providers that includes the proposed project (using the Agency’s documents, see application form) and supporting commentary and is consistent with the investment appraisal for the preferred option. The financial plan should be continued for at least two years after project completion. The
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signature included in the application form will be taken as endorsing all supplementary documentation, including the Financial Plan; and where applicable a risk management plan.
Where a FE college states that it cannot afford the normal 1:2 match funding or the total project cost is in excess of £10 million, the capital affordability schedules (schedules 7a, b and c) within the FE college financial plan should be completed.
Project Funding/Finance Spend Profile: This form must be completed in government financial years, April to March. The expenditure profile submitted will be the profile that the applicant will be held to if the project is approved and will determine the grant payment profile in the Grant Funding Agreement.
A risk management plan: required for projects over £1 million, or 25 per cent of turnover, or where a college’s financial health calculated or Agency assessed grade is Inadequate at application date, to demonstrate that risks will be adequately managed.
Key Milestones and Timings: The applicant will be held to the milestones and timings submitted if the project is approved and will be determine this element of the Grant Funding Agreement.
Metrics, Outputs and Outcomes: The applicant will be held to the metrics, outputs and outcomes submitted if the project is approved. The metrics, outputs and outcomes will form part of the Grant Funding Agreement.
State Aid: All non-FE Colleges must provide information/a statement to enable the LEP to make an assessment as to whether capital funding payable under this scheme could amount to unlawful State Aid. All non-FE colleges successful at Detailed Application stage will be required to complete and return a State Aid Deed to the LEP.
Assessment of applications will be based only on the information submitted in the required format; however it may be validated against financial and estates related information already held by the Agency. The LEP cannot guarantee that it will consider at the assessment stage any information provided which is in addition to that listed above.
The application form states the permitted words allowed in each section. Skills Providers must adhere to the word limit; we will not consider information provided over and above the word limit. Skills providers are advised to provide focused and succinct responses,
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supported by robust, quantifiable and achievable information (particularly in the benefits to learners, employers, local community and supporting economic growth sections).
6.2. Appraisal Criteria
Lancashire Enterprise Partnership will use the following criteria to ensure applications align to local economic growth opportunities and the educational needs of learners as set out in the prospectus.
The Detailed Application form, see Appendix 2, contains further information regarding the appraisal categories below.
Benefits to Learners, Employers, Local Community and Supporting Economic Growth
• Benefits to Employers eg Employer Co-investment; Employer Sponsorship; Employer
Support
• Supporting Economic Growth
• Job Creation
• Benefits to learners
• Tackling NEETs and unemployment
• Improving the quality of teaching and learner success
• Expanding and growing Apprenticeships and employer engagement
• Added Value
• Other Measures, such as impact on areas of high deprivation and reductions in CO2
Estate need
• Sustainability – strategic engagement with Sustainability and Carbon Reduction agenda, linking the project to these targets. Links to formally recognised initiatives such as ISO14001 and other environmental management and carbon reduction programmes.
• BREEAM rating – new build expected to be ‘Excellent’, refurbishment ‘Very Good’. Supporting work (such as pre-assessments) to support achievement of these ratings.
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• Relevance of proposal to the applicant's strategy. For colleges the project should be part of a clear adopted property strategy for the institution and a copy of the latest strategy must be provided with the application. For non-college providers, applicants must provide evidence through relevant organisational strategic planning documents
Financial Assessment
• Relevance to cost benchmarks - Cost per square metre compared with cost benchmarks – refer to cost model information in the Capital section of the Agency’s website. Costs should be within five per cent of benchmark rates. If above this, a robust case must be made for any abnormal cost levels; the LEP may not provide SCF to projects which are more than five per cent in excess of the Agency’s cost benchmark unless adequate justification of the additional costs is provided.
• Net present value - Return on investment, in terms of the investment appraisal (NPV) for the proposed project compared with the base case (do the minimum) option.
• Efficiency savings - in terms of premises savings compared with premises costs over a 20-year period in the investment appraisal information for the preferred and base case options. If these costs exceed the savings by more than five per cent of the total project cost then adequate justification must be provided in terms of how the project will enable the skills provider to reduce its overall premises costs per square metre over the investment period; or in exceptional cases, why the project is unable to contribute to lower premises costs (£/m2), for example the skills provider proposes to build additional space to accommodate new provision.
7. Grant Funding Agreement and Project MonitoringPlease note by applying for Skills Capital Funding through the process set out in this prospectus you are agreeing to accept the terms of the Grant Funding Agreement. Therefore please read the terms of the Grant Funding Agreement thoroughly before applying for Skills Capital Funding.
Applicants with projects approved for the SCF will receive a letter from the LEP confirming the funding in relation to the project and setting out the conditions of the grant.
Please see at Annex 3 the Grant Funding Agreement that successful applicants will be asked to sign.
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Applicants will be required to indicate acceptance of the terms by signing and returning a copy of the funding letter within two weeks of receipt. Offer letters will only be sent out once a copy of the minutes confirming governing body or board approval for the SCF project have been received.
Arrangements for payment of the SCF grant and evidence requirements will be confirmed on award of grant.
The LEP will require successful applicants to comply with such funding conditions as it may impose and will undertake random site visits to ensure all conditions are followed.
The LEP will reserve the right to recover funds in the event that project costs (including VAT savings) are less than originally approved, or have not been used for the agreed purposes.
It is expected that applicants, or their nominated representatives, provide quarterly updates on progress to the LEP, unless a specific frequency is agreed. It is also expected that they report against the programme approved as identified in the detailed SCF application documentation.
8. Post-Occupancy Evaluations
The LEP is required to account for public investment made in any skills provider's estate and/or property and the impact it has made and therefore usually requires, as a condition of capital grant, a project post-occupancy evaluation. It is expected that skills providers will provide post-occupancy evaluations within 12 months of completion of the project.
As part of the SCF application, skills providers are required to identify a minimum of three specific, measurable, achievable, realistic and time framed (SMART) objectives/outputs for the proposed capital project. At least one objective/output should relate to the skills provider’s estate/property and one should relate to benefits to learners, employers and the local community. It is expected that skills providers will assess the extent to which the identified SMART objectives/outputs have been achieved when completing the LEP’s required post-occupancy evaluation analysis.
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