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Liverpool City Region

Strategic Investment Fund – Skills Capital

Strand 3 – Equipment

Guidance Note

1Investment Strand 3 – March 2019

1. Introduction

This Guidance note sets out detailed information for applicants to the Liverpool City Region Skills Capital Strategic Investment Fund (the Fund).

Investment Strand 3: Equipment

Strand 3 (Equipment) is to enable the purchase of major equipment to deliver learning within an educational setting. It is designed to ensure equipment being used by FE Colleges and skills and learning providers is up to modern industry standards and responsive to employer demand and Liverpool City Region skills priorities to support economic growth.

Investment Strand 3

Indicative Allocation

Description Minimum -Maximum Value of Grant

Eligibility

Equipment £2.0m Investment in equipment to ensure training environments are up to modern industry standards, with a particular focus on advanced manufacturing, digital, logistics, health and construction sector skills needs.

Min £25,000

Max £500,000

All eligible applicants listed in Section 2.2

In brief, the Fund is made up of 5 strands as follows:

Investment Strand

1. Sites and Premises2. Improved Facilities3. Equipment4. Maintenance of Further Education Facilities5. Low Carbon Reinvestment Fund

This guidance note relates to Strand 3 only. Further guidance will be made available on the application process for the other strands.

For Strand 3 – Equipment there is a one stage competitive application process. This opens from 31 May 2019 and will remain open where funding is available until 31 August 2019.


It is strongly recommended that potential applicants read in full the Skills Capital Prospectus and review the other strategic documents referenced within this document via the web links. Potential applicants should do this before they consider making an application to the Fund.

2. Scheme Overview and Eligibility

2.1 Strand 3 Overview

Strand 3 (Equipment) is to enable the purchase of major equipment to deliver learning within an educational setting. It is designed to ensure equipment being used by FE Colleges and all other skills and learning providers is up to modern industry standards and responsive to employer demand and Liverpool City Region skills priorities. Funding awards will prioritise investment with a particular focus on:

Specialist high cost equipment needs to ensure that training meets industry standards for Science, Technology, Engineering and Mathematics;

Specialist high cost equipment needs to ensure that training meets industry standards for growth sectors (Advanced Manufacturing; Digital; Logistics, Health and Life Sciences and Construction sector skills); and

Equipment that will improve the quality of the learning experience or engagement of learners.

In general, items such as software, general IT and telephony equipment are classed as ineligible under Strand 3.

The funding is deployed using a minimum and maximum package approach to investment and via a competitive process. This is likely to be an extremely popular strand for applications so a minimum package and item level will streamline the assessment process/timeline while also allowing funding to be deployed to meet any emerging industry needs for new equipment or to update poor equipment to achieve maximum impact.

Collaborative proposals will be welcomed under Strand 3, particularly where those involved in the partnership can enable larger learner volumes to make use of industry standard equipment in the City Region’s key growth and employment sectors.

Previous nationally operated grant support schemes for equipment (both to FE Colleges and other approved training providers) have been variable in terms of volume of applications received and quality of projects proposed.

Under Strand 3 design, £2m is available. The Strand is being opened to applications on the basis outlined above to test interest and provider capacity locally for this type of support.


The City Region reserves the right to flex the scope, grant package levels/thresholds and eligibility for this Strand including the grant co-investment rates applicable to any future round/s in light of experience from applications received up until 31 August 2019.

2.2 Overall Eligibility Criteria

This Skills Capital call is open to individual or consortia applications led by the following organisations based within the constituent six Local Authority areas within Liverpool City Region:

General Further Education (FE) Colleges; Specialist Colleges operating within Liverpool City Region; Sixth Form Colleges (and academies formerly designated as Sixth Form

Colleges); Liverpool City Region devolved Adult Education Budget providers; Liverpool City Region based Education and Skills Funding Agency (ESFA)

funded Independent Training Providers with direct contracts for Apprenticeships, Traineeships or 16-18 study programmes;

Universities (who deliver or plan to deliver Higher and Degree Apprenticeships); Employer Providers who offer apprenticeships (listed on the Register of

Apprenticeship Training Providers); and Liverpool City Region based training providers who are in receipt of European

Social Fund contracts.

Please note the following: Sub-contractors to the above organisations are not eligible to apply within their own right but can form part of a prime contractor consortia application.

2.3 Strand 3 – Equipment

The Equipment strand is designed as follows:

Description Purchase of major equipment to deliver learning within an educational setting

Eligibility See section 2.2.

Consortia bids welcomed

Minimum Total Project ValueMinimum £25,000 Total Package Value – (although cash and in-kind leverage of funding is expected except in exceptional circumstances)


Minimum Individual Item Value £25,000

Minimum value of grant considered Minimum grant of £25,000

Maximum value of grant considered Maximum grant of £500,000

Intervention rate Cash and in-kind leverage of funding is expected except in exceptional circumstances.

Ineligible ItemsIn general, items such as furniture, software, general IT and telephony equipment are classed as ineligible under Strand 3.

3. Appraisal Criteria

Section Four of the Combined Authority’s Investment Strategy (see website) describes the overarching SIF investment process. Project sponsors may refer to this section, and to the accompanying appendices, to understand the Combine Authority’s process in greater detail.

Outline submissions for Skills Capital should be completed using the submission form set out in Appendix 1. The form and accompanying guidance notes are available electronically for download on the Combined Authority website: http://liverpoolcityregion-ca.gov.uk/documents

Completed submissions together with any supporting information should be emailed to [email protected]

Sponsors are reminded that a key element of the assessment will be the deliverability of the project. Whilst it is recognised that at initial submission stage, further work is likely to be required – sponsors are requested not to make a submission until they are ready to do so. Support from the SIF Investment Team is available to assist in this regard.

Sponsors are invited to identify in any application the information which they consider to be commercially confidential and the CA will treat such information accordingly. However, this cannot override the CA’s obligations under the Freedom of Information Act 2000 and/or Environmental Information Regulations 2004 (SI 2004 No. 3391).

For Skills Capital projects, the Combined Authority will use the following appraisal criteria in its assessment, based on the approach used to evaluate previous Skills


mailto:[email protected]

http://liverpoolcityregion-ca.gov.uk/documents

Capital rounds. Sponsors will also need to identify the expected learning and skills related outputs and outcomes that their project will deliver.

4. Application Process and Notices

Each application/sponsor should complete no more than one Application through this Strand.

The Combined Authority will expect equipment projects to seek to complement existing curriculum delivery and be supported by existing and recurrent revenue sources for learning purposes.

Applicants should not enter into any agreements to purchase equipment until they have been advised that their application has been successful and have been made a formal funding offer by the Combined Authority.

Applicants are reminded that the SIF Skills Capital funding will not provide increased capital grant should project costs exceed the approved amount. Furthermore, the Fund may not be in a position to pay grant for any costs incurred after 31 March 2021. However, this position will be clarified during the due diligence phase when an expenditure profile will be formally agreed. For the purposes of submitting your proposal, applicants must work on the principle that the majority of grant expenditure will be incurred and evidenced by 31 March 2021.

In all cases, applicants must comply with the current Public Contracts Regulations and European Commission (EC) Procurement Directives and adhere to their own procurement rules and regulations for the engagement of consultants and contractors and the purchasing of equipment.

All applicants need take steps including a letter of state aid legal opinion to satisfy themselves and the Combined Authority that any grant support funding payable under the Fund does not breach State Aid rules.

Before applicants receive any grant they will need to provide the Combined Authority with a formal written State Aid opinion from a solicitor, regulated in England and Wales who specialises in the EU State Aid rules, confirming in detail how the project complies with the EU State Aid rules, or a declaration to show that the grant is compatible State Aid as it is to be provided as De Minimis aid in compliance with the De Minimis Regulations.

5. Application Requirements

In addition to this guidance note, information on how to complete the form is included within the Combined Authority Strategic Investment Fund – Skills Capital Prospectus


itself. Sponsors / Applicants are required to meet the word limits that apply to each section of the form.

Taking into account the limited time available to carry out assessments and approvals of the Applications, sponsors / applicants are required to keep answers brief and to the point – word limits apply to certain sections of the form to help keep the process manageable.

The Combined Authority will assess Applications only on the information submitted in the required format.

Applicants should complete the ‘Outline Submission for Support from the Liverpool City Region Combined Authority Strategic Investment Fund – Skills Capital Prospectus’ using the following tables within this section as a guide for completion.

Project Summary5.1 Project Summary Please provide a short summary of the project (Guide 200 words)

5.2 Strategy and Purpose Please describe your objectives in completing this project. How does fit into the Skills Capital Prospectus? (Guide 250 words).

What are your organisation and other project participants/stakeholders trying to achieve?

What will count as success? What financial objectives do you wish to reach? What learners will you engage and what volumes of learning will the increased capacity

from investment allow you to deliver per academic year.

Eligible applicants should consider and provide evidence of:

The current lack or state of the equipment for improvement and how the proposed project will address this and impact on the overall condition and the quality of the learning environment.

How the project contributes to meeting Liverpool City Region Skills Strategy 2018 and the needs set out in the current Skills for Growth Action Plans summarised in the Skills Capital Prospectus (any projects seeking support outside of these skills needs will require a compelling business case with evidence from named supporting employers);

How the project enables businesses and learners to adopt new technologies or business processes leading to an increase in take up of technical or specialist training and supports an ambition for greater volumes, a broader offer and a more diverse range of vocational and technical skills including those delivered through


Apprenticeships and Traineeships; Enhances learner engagement, and improves learner pathways, performance,

success and achievement, including narrowing gaps in the participation and achievement of underrepresented learners.

5.3 Development and Operation - Please provide details of the scope, scale and timing of project development, describe its operation on completion and what plans you have, if any, to exit the project after completion. Please include a table of costs. Guide 350 words.

Where you are considering more than one project delivery option, you may provide 150 additional words on each alternative and summarise the differences in a table. You may include maps, plans and graphics by appendix.

Applicants may consider and set out:

An implementation plan from purchase to installation and operation within appropriate timescales;

Provision for any equipment maintenance works to be funded by the applicant detailed through a short, robust and measurable Equipment Use and Maintenance Plan, setting out how each item of equipment will:

o be used for benefitting learning with a focus on adult classroom based learners, 16-18 year old learners, Apprenticeships (of all ages) and Traineeships including those learners with learning difficulties and disabilities;

o reduce operating costs, drive efficiencies and prove versatile, fit for purpose and tolerant to change;

o provide wider community benefits (including to schools and other groups) e.g. free supervised access to use the equipment as part of taster sessions;

o receive effective whole life maintenance (e.g. indicative maintenance schedules).

Ensuring space for use of major items of equipment to include sketches and floor plans;

Ensures the purchase price of equipment will not increase due to delays in identifying storage or location issues;

Delivers investments in capital equipment covering elements, which are not retrospective or part of a provider’s own planned capital upgrades;

Demonstrates deliverability within the proposed timescales; A statement setting out the low carbon benefits of the project.

5.4 Approvals, Consents and Authorisations - Please provide the material approvals,


consents and authorisations you need to deliver and operate the project. You make provide brief commentary on your approach to securing these, including in relation to timing and dependencies / conditions.

Approvals, consents and authorisations may be internal (funding and resource) approval as well as external (like planning permission). For projects involving land and property; confirm ownership of land or route to ownership and confirm land value contribution Please provide letters of support (non-binding) from key stakeholders and detail the level of engagement with other public and private organisations and agencies.

Applicants may consider and set out:

A timescale for purchasing and installing equipment; State aid legal letters of assurance and/or a timescale for provision of this if deemed

necessary; Internal governance approval for the commitment of co-investment; Letters of support from employers and other strategic stakeholders; Supporting evidence for any third-party project funding (if applicable) – for example if

available, award letters or formal letters of confirmation; The Principal / Chief Executive or his/her designated deputy must sign the

Application Form.

Development and Operation

5.5 Market, context and value Please describe the market in which the project will operate. The response to this question will differ across sectors. Skills projects are aimed at learners. There is no correct answer, responding will simply help the CA place your project in context.

For Skills Capital investment, the response may differ across sectors and the revenue source that will be accessed to support learners e.g. apprenticeships/levy, 16-18 ESFA Study programme, AEB funded delivery. There is no correct answer, responding will simply help the CA place your project in context.

You may consider:

What/who are its end user learners, and/or other beneficiaries? What/who are its competitors and how duplication of provision will be avoided? What is the demand for the project and how competitive is the supply? What are its competitive advantages? If your project has a commercial value, what do you expect it to be and how did you

arrive at this value? If you expect the value to fall below the cost of delivery, why and by how much?

You may submit by appendix market analysis and valuation work completed to date, noting that the CA is likely to reach its own view (Guide. 300 words plus tables).

Applicants should develop and articulate a clear delivery operational case and provide


supporting evidence of how their project will:

Use equipment that will support delivery curriculum area of learning aligned to local demand for skills and economic needs;

Demonstrate versatility to efficiently accommodate changes in curriculum, social and economic needs and/or educational delivery;

Demonstrate access to appropriate recurrent revenue funding to ensure equipment will support learning over a sustained period and/or support the delivery of apprenticeships.

5.6 Learning Volumes and Outcomes Please describe the learning volumes and outcomes that will be supported by the project and your current baseline volumes of delivery for this provision if applicable.

Learner funding

Baseline - Learner numbers before project [1]

Expected Learner Outputs per Academic Year

Total Learner numbers after project per annum after 3 years [2]

Change in learner numbers = [2-1]

Yr 1 (Additional learner enrolments)

Yr 2 Additional learner enrolments)

Yr 3 (Additional learner enrolments)

2018 - 2019

Insert Year 1 academic year



16-18 Apprenticeships (levy and non levy)Adult (19+) Apprenticeships (levy and non levy)Adult Education Budget funded learners

Level 3 and above learners trained (not including apprentices)Traineeships delivered progressing into employment and further


training (16-18 and 19-24)ESFA funded Study Programme learners (16-18)Higher Education (Office for Students funded) learnersOther technical skills delivered to learners

Total

5.7 Other Outcomes – Employment The total number of newly created and safeguarded permanent full-time equivalent jobs as a direct result of the intervention at predetermined employment sites. Employment sites include occupied newly developed commercial premises, the premises of supported enterprises, and any FE space directly improved or constructed by the intervention. Created and safeguarded jobs exclude those created solely to deliver the intervention (e.g. construction). A job is deemed as permanent if it lasts at least a year. Please include the number of apprenticeship positions created as a direct result of the intervention.

Employment Outcomes

Baseline - Learner numbers before project [1]

Expected Employment Outputs per Academic Year

Total employment number after project per annum after 3 years [2]

Change in employment numbers = [2-1]

Yr 1 Additional learner enrolments



2018 - 2019




Delivery jobs created/ safeguarded

Apprenticeship posts created

5.8 Other Skills and Education outcomes


Number of New Learners Assisted (in courses leading to a full qualification)

The number of new learners assisted as a direct result of the intervention, in courses leading to a full qualification.

Specialist Capital Equipment

Type of new specialist equipment -

Specialist equipment:

Resources specific to a particular sector or industry, and which are required in connection with that sector or industry’s production of goods and services.

These resources will usually comprise specific mechanical devices, but may include bespoke software, or a combination. Includes resources used to produce goods and services, as well as training resources unique to the industry (e.g. simulators). Does NOT include general equipment, IT infrastructure or resources used for several curriculum areas.

Other Capital Equipment

Non-specialist capital equipment (see above).

5.9 Funding – to establish value for money and affordability - Sources of funding – please complete the following table, adding lines and providing background information as necessary.

Where you are considering different options, please repeat this table for each option, noting that, if the CA accepts your project beyond the outline stage, its investment team will engage directly with you to


structure a heads of terms for SIF financing.

You may also describe the key terms of the funding to be provided. Guide 200 words excluding tables

Applicants should use the following table to demonstrate their project:

Delivers co-investment both cash and in-kind – unless there is a compelling business case including evidenced affordability;

Evidences that the necessary matched funding requirements can and will be met.

Type of Funding Provided/Sourced by Sponsor

Request from SIF Total

[Item 1] £ £ %

[Item 2] £ £ %

Total £ £ %

Proportion of Total % % 100%

How the project meets the value for money in terms of its equipment costs through cost / benefit analysis;

Where costs exceed planned estimates or the minimum cost option considered how project cost changes will be managed and mitigated against, where cost reductions could be made to allow completion;

Provide a Planned Expenditure profile – required for the equipment purchase.

5.10 Organisation and Personnel Please provide, with brief appendices if necessary, an organisation chart for the project including funders and key stakeholders, the proposed legal structure of the project and the biography of key project team members. Please also provide summary evidence, whether by reference to previous projects, case studies, corporate performance or other, of the sponsor’s and its team’s previous experience in delivering comparable and equivalent projects. Guide. 400 words plus charts. Please attach most recent Annual Accounts for your organisation (not required for public authorities).

5.11 Risks Please focus on the quality of risk assessment above the quantity of risks listed. Max.400 words. Applicants will need to provide details and clear evidence of:

The deliverability of the project and effective risk management procedures with effective risk management considerations, issues and mitigations against deliverability of the equipment and its installation;

How the required co-investment will be realised within the timescales for equipment;


Mitigation of risk of equipment being underutilised or not used to its full potential; Mitigation for where costs exceed planned estimates or the minimum cost option

considered how project cost changes will be managed and mitigated against, where cost reductions could be made to allow completion;

Please provide a brief summary table of the main project delivery risks per the below:

Risk Probability & Impact Potential Mitigation

[Risk 1] Select [low/medium/high] probability of risk occurring

Select [low/medium/high] negative impact on project delivery if risk occurs

[Risk 2]

[Risk 3]

[Risk 4]

5.12 Declaration

Please complete by appending your (the project lead’s) electronic signature below or by copying the declaration into the email submission of this form.

Signature...........................................................................

Name.................................................................................

Company name.................................................................

Position.............................................................................

Date....................................................................................


6. Application Submission

STAGE 1: CALL

Applicants are invited to respond to the calls by completing the outline submission application form.

The Adult Education Budget (AEB) Commissioning Team and Investment Team will arrange meetings throughout the process to agree in principle the approach to various aspects of the potential project. This includes an exploration of funding options and Monitoring and Evaluation approaches.

6.1 Outline application submitted to SIF mailbox [email protected]

Submission Requirements: Important Information

Applicant providers must return one electronic copy of the signed and completed:

Application Form; Supporting information required, (as set out in the guidance note at Section 5 and

contained in the Application Form).

All documentation must be received by 4.00pm on 31 August 2019. (Please compress emails to less than 5Mb or send several emails and reference and number them clearly ensuring the organisations name is in the title of the e-mail).

For Strand 3, the Liverpool City Region Combined Authority does not initially require any hard copy information.

Without exception, the Liverpool City Region Employment and Skills Team will not accept any documentation that is submitted after the deadline of 4.00pm on 31 August 2019, or that fail to provide the information requested in full, as set out in this guidance document.

The SIF mailbox is managed and routinely checked by the Project Management Office (PMO) team. All applications receive an acknowledgement email by reply. The PMO will create a new Project file for each new application received. The PMO will check the application submission for completeness. And will go back to the applicant if needed.

The AEB Commissioning Team and Investment Team will solicit additional information from the applicant as required and will perform early checks as deemed necessary.





STAGE 2: CONCEPT

6.2 Outline Paper presented to the Internal Investment Panel

The AEB Commissioning Team and Investment Team Lead will produce an Outline Paper to be presented to the Internal Investment Panel meeting with judgements made against the criteria established in Appendix 1 of the investment strategy.

The applicant will receive an email providing relevant feedback. This may be accompanied by a phone call between the applicant and the AEB Commissioning Team and Investment Team project lead. The project may be rejected at this stage or allowed to pass back though the outline review stage once more.

6.3 Delivery Options assessed

The AEB Commissioning Team and Investment Team Lead will put in place arrangements to agree in principle the approach to the project including an exploration of funding options and Monitoring and Evaluation approaches, delivery options/ alternative delivery models as a part of the appraisal process and assurance that these reflect the SIF assurance framework.

6.4 Draft Heads of Terms

The AEB Commissioning Team and Investment Team Lead will commence a process of negotiation with the applicant including a delivery timeline consulted on with PMO to ensure achievability.

6.5 Agree Due Diligence Approach and Commission ‘light touch’ economic appraisal and review results

The AEB Commissioning Team and Investment Team Lead to lead the scrutiny of a business plan, financial model and funding documents to review and raise concerns or omissions with the applicant. The Investment Team and procurement colleagues confirm scope/ requirements to procure an economic appraisal which will inform the prioritisation of projects.

6.6 Produce Concept Paper for External Investment Panel

The AEB Commissioning Team and Investment Team Lead to develop paper which is presented to the External Panel. The AEB Commissioning Team and Investment Team Lead share detailed and constructive feedback with applicant via letter (email). A follow up call may be necessary. If progressing to the next stage, and if not already raised, CA cost recovery details should be agreed with the applicant at this stage. The project may be rejected at this stage or allowed to pass back though the Concept review stage once more.

STAGE 3: INTERIM REVIEW

6.7 External (Interim) Investment Panel Review (Dependent on size of project)


For projects that are unusually large, complex, novel or protracted in negotiation. Where, following a Concept Review at the External Investment Panel, there are additional information requirements, new developments or other items to be explored, an Interim Review will be held to decide on whether to progress the project. What is presented at an interim review will constitute the project Outline Business Case (OBC).

STAGE 4: FINAL REVIEW

6.8 Full Business Case (FBC) & Full Appraisal - Final Review

Projects with satisfactory diligence, heads of terms and external appraisal will be submitted for consideration at the final stage by the Investment Panel, which will provide final commentary to the Combined Authority delegated Director on the project’s merits. The AEB Commissioning Team and Investment Team lead will liaise with Procurement and the legal team to draft contracts.

Detailed and constructive feedback shared with the applicant via letter (email) from the Investment Team Lead. A follow up call may be necessary. The project may be rejected at this stage.

STAGE 5: DELEGATED DIRECTOR APPROVAL

6.9 Final consideration

Projects recommended for approval by the Investment Panel will be submitted to the Combined Authority delegated Director for final consideration. Projects approved, in principal will receive delegated authority for officers of the CA to enter into legal documentation and proceed to disbursing the SIF commitment. Projects that are rejected will receive reasoned feedback.


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