Hello Jan,
Procurement offsets are pretty common in large projects and/or defense projects. In South Africa the National Industrial Participation Programme is a good example of an offset programme. You can find more at http://www.dti.gov.za/offerings/offe...offeringid=127.
In implementing an offset programme, be sure to consider the administrative and monitoring effort in such a programme.
Skills transfer is a major focus for many public sector organisations in South Africa (particularily when contracting consultants). I have found a number of success factors in such programmes to be:

• Linking the skills transfer programme to the individual's development plan

• Agreeing upfront the existing skills levels (down to a level of proficiency) of individuals that will be subject to the skills transfer interventions.

• Agreeing upfront on how the success of the skills transfer initiatives will be measured (hence the need to often tie it into the existing skills development programme).

• Agreeing upfront the effort by the subcontractor and by the organisation that will be committed to the skills transfer initiative.

Good luck, these initiatives are not easy.
ShaunCScott

Shaun, thank you very much for your help. i will let you know how we get on and will share any valid learning points that we come across. best regards, Jan