Subcontracting Supply Chain Fees and Charging Policy

2020/21

Change Control

Version: V7

New or Replacement: Replacement

Approved by: Senior Management Team

Date approved: October 2018

Name of author: Operations Manager

Name of responsible committee: Senior Management Team

Name of Corporation committee: N/A

Date issued: September 2020

Review date: September 2021

Document Reference: GIG-SMT-PARTNERSHIPS-PM01

Revision History

Version Type Date History

V1 New 16th July 2013 Draft

V2 Amendment 20th August 2013 Approved

V3 Amendment 5th Nov 2015 Approved

V4 Amendment 28th October 2016 Approved

V5 Amendment 1st October 2017 Approved

V6 Update October 2018 Approved

V7 Update April 2019 Approved

V7 Reviewed September 2020 Approved

This policy applies to Grimsby Institute of Further & Higher Education (GIFHE) and incorporates the trading styles of TEC Partnership, Grimsby Institute of Further and Higher Education, Scarborough TEC, Skegness TEC, The Academy Grimsby and all wholly owned subsidiary companies of the Grimsby Institute of Further & Higher Education which include Modal, Support Staff Services and Grimsby College Trading.

Contents

1. INTRODUCTION 2

2. PURPOSE 2

3. SCOPE 2

4. GROUP VISION 2

5. GROUP MISSION 2

6. STRATEGIC OBJECTIVES 2

6.1 DUTIES WITHIN THE ORGANISATION 2

6.2 CONSULTATION AND COMMUNICATION 3

7. DUE DILIGENCE AND QUALITY ASSURANCE 3

8. SUBCONTRACTING FEES 4

9. PAYMENT TERMS 8

10. APPEALS 9

11. DISSEMINATION AND IMPLEMENTATION 9

11.1 DISSEMINATION 9

11.2 IMPLIMENTATION 9

12. REVIEW 9

13. PUBLICATION 9

14. REFERENCES 10

15. LEVEL OF ESFA FUNDING PAID AND RETAINED ACADEMIC YEAR 2016/2017….11

16. LEVEL OF ESFA FUNDING PAID AND RETAINED ACADEMIC YEAR 2017/18…..12

17. LEVEL OF ESFA FUNDING PAID AND RETAINED ACADEMIC YEAR 2018/19….13

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1. Introduction

When the TEC Partnership works with subcontracting partners it expects an understanding of shared values that puts the learner at the center of all, reflecting our efforts and achievements in fulfilling the Vision and Mission statements below. This document outlines the Subcontracting Supply Chain Fees and Charging Policy when working with subcontractors that deliver training of full or partial programmes on behalf of the TEC Partnership.

2. Purpose The aim of this policy is to provide accurate and comprehensive information to external agencies on the pricing and quality framework that the TEC Partnership adopts when subcontracting training provision.

3. Scope The TEC Partnership subcontracts only when it supports the needs of the region it operates in or if agreed with an employer to enhance a bespoke programme to fulfil a requirement that cannot be met internally. In line with ESFA subcontracting funding policy. Subcontracting may be considered across 16-18, 19+ AEB and Apprenticeships. The TEC partnership will only consider a subcontract if positive due diligence, including quality and finance checks meet group expectations. All subcontracting is approved via the Executive Management Team and communicated to governors at corporation.

4. Group Vision We strive for excellence and innovation in all that we do

5. Group Mission We will build on our outstanding recognition and deliver an inspiring experience for learners, staff, employers and stakeholders

6. Strategic Objectives The Subcontracting and Supply Chain Fees Policy reflects TEC Partnership Mission, Vision and Values through its strategic objectives as detailed below.

• To ensure outstanding Learner Success is our number one priority • To develop a high performing organisational culture which embraces accountability

and ownership • To ensure the Group is financially strong and able to invest in enhancing the Group

infrastructure and student resources • To ensure the offer meets the needs of the local and regional economy

6.1 Duties within the Organisation

The Subcontracting Policy is led by the assigned Principal/ CEO and involves the Executive Director for Workforce skills, Executive Director Projects and Partnerships and the relevant Managers and support teams.

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6.2 Consultation and Communication

The TEC Partnership will seek consultation from stakeholders appropriate to the scope of this policy document, including The Education Skills Funding Agency and appropriate Governing committees. This Policy will be discussed with subcontractors prior to their engagement.

7. Due Diligence and Quality Assurance

7.1 The TEC Partnership is committed to improving the Quality of Teaching and Learning of all provision offered and will work with the subcontractor to ensure continuous improvements are put in place across the range of provision offered.

7.2 The TEC Partnership will undertake a fair and transparent procurement of

subcontractors through a robust due diligence process prior to engagement. The due diligence process will include but is not limited to the subcontractor’s financial health and capacity and capability to deliver. All subcontractors will be approved for delivery only by the Executive Management Team. Due diligence with check appropriate status of ROTO (Register of training organisations) or ROATP (Register of Apprenticeship Training Providers).

7.3 The TEC Partnership will work within the funding rules per provision type. This

includes Apprenticeship subcontracting policy which can include employer delivery. Employer due diligence will be completed to the same level as training provider due diligence to ensure capability to deliver at the standard required.

7.4 The TEC Partnership will work with the Subcontractor to make available reports

as required, which will be submitted to Stakeholders as required including a Self-Assessment Report and Quality Improvement Plan.

7.5 The Subcontractor will assist in the research, analysis and reporting of an

annual Self-Assessment Report and Quality Improvement Plan to agreed guidelines drawing on relevant performance reports and data ensuring contributions are made by stakeholders including learners, tutors, community groups and employers.

7.6 The Subcontractor will allow access by TEC Partnership Management Team to

any aspect of their provision for monitoring, Inspection or Self-Assessment purposes.

7.7 The Subcontractor must ensure that all venues are safe and suitable for the

delivery of learning.

7.8 The Subcontractor must ensure that all staff have a current Data Bureau Service enhanced disclosure and are trained within Safeguarding, all subcontracted learners are the TEC Partnerships responsibility covered by group safeguarding policies and procedures.

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7.9 Dependent on the type of agreement a subcontractor must either a) adopt TEC Partnership Observation of Teaching, Learning and Assessment process and submit all Observations undertaken to the Quality Manage, b) allow TEC Partnership access to perform observations of teaching and learning, c) follow an approved policy declared within due diligence.

7.10 These requirements will be monitored through quarterly contract meetings, regular performance reports including Key Performance Indicators (retention/ achievement/ quality indicators) relevant to the sector in which the subcontractor is delivering as outlined within the Subcontractor Agreement.

Poor performance against targets will require the Subcontractor to prepare and implement recovery plans and may result in financial penalties and/ or operational intervention in line with our performance management process.

8. Subcontracting Fees and Types of Provision

The contracting fees will be determined and measured by the use of a Risk Assurance Score Card outlined below for AEB and or ESFA/ ESF.

For Apprenticeship provision the rules apply based on apprentice start date. Current guidelines (July 19 V1). Due to the complexity of Apprenticeship subcontracting and the requirement to gain agreement from the relevant employer any apprenticeship subcontracting requires a formal Apprenticeship Training Contract Agreement (ATSA). Apprenticeship subcontracting payments are agreed at negotiation phase, due diligence will inform suitability, however the delivery model agreed with the employer will inform price. The below tables illustrate standard management fees, however for apprenticeships proportional delivery or additional responsibilities may mean alternate fees applied within contracts.

https://www.gov.uk/guidance/apprenticeship-funding-rules#the-latest-rules-2018-to-2019

[Update] Version 1 Apprenticeship funding rules for main providers 19/20- July 2019

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_ data/file/821581/1920_Provider_Rules_Version_1.0_FINAL.pdf

Standard Training Provider Risk Assessment Score Card

Category Weighting Range Elements Rating Financial Position 15 Outstanding 1

Good 3 Satisfactory 5 Inadequate 8

Number of Learners 15 10-20 1 21-100 3

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Category Weighting Range Elements Rating 101-500 5

501+ 8 Retention Rates (Significant Courses) 15 > 10% above national average 1

> 6% above national average 3 +/- 5% of national average 5 New Provision 8

Achievement Rates (Significant Courses)

15 > 10% above national average 1

> 6% above national average 3 +/- 5% of national average New Provision

5 8

Observations of Teaching and Learning

10 90% or above good or better 1

70% - 89% good or better 3 60% - 69% good or better 5 New Provision/<59% good or better 8

Learner Voice 10 90%-100% Learner Satisfaction 1 70%-89% Learner Satisfaction 3 60%-69% Learner Satisfaction 5 New Provision/< 59% Learner Satisfaction

8

Auditors Visits (Past Compliance) 7 Compliant 1 Some Areas Non-Compliant 3 Several Areas Non-Compliant 5 New provision 8

Value of Contract 5 < £50,000 1 £51,000 - £100,000 3 £101,000 - £200,000 5 >£201,000 8

Locality of delivery from TEC Partnership

3 < 50 miles 1

51-100 miles 3 101-200 miles 5 > 201 miles 8

Length of Partnership 2 > 5 Years 1 3 – 4 Years 3 1 – 2 Years 5 New Provision 8

Number of Delivery Centres 1 1 Centre 1 2 - 3 Centres 3 4 - 5 Centres 5 > 5 Centres 8

Number of New Sites 1 No new sites 1 1 – 3 new sites 3 4 – 5 new sites 5 > 5 new sites 8

Type of Provision 1 Short Courses/Full Time Learners 1 Apprenticeship frameworks* 3 Apprenticeship standards * 5 Distance Learning 8

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Standard management fee table

Risk Band Score Range Percentage Contract Fee Percentage to Subcontractor

1 550-800 25% 75% 2 350-550 20% 80% 3 100-350 15% 85%

Proportional Employer Delivery Risk Assessment Score Card

Category Weighting Range Elements Rating Financial Position 15 Outstanding 1

Good 3 Satisfactory 5 Inadequate 8

Number of Learners 15 10-20 1 21-100 3 101-500 5 501+ 8

Teacher/ trainer qualification/ experience

3 4+ years 1

3+ years 3 2+ years 5 1+ year 8

Value of Contract 5 < £50,000 1 £51,000 - £100,000 3 £101,000 - £200,000 5 >£201,000 8

Locality of delivery from TEC Partnership

3 < 50 miles 1

51-100 miles 3 101-200 miles 5 > 201 miles 8

Length of Partnership 2 > 5 Years 1 3 – 4 Years 3 1 – 2 Years 5 New Provision 8

Number of Delivery Centres 1 1 Centre 1 2 - 3 Centres 3 4 - 5 Centres 5 > 5 Centres 8

Number of Sites 1 No new sites 1 1 – 3 new sites 3 4 – 5 new sites 5 > 5 new sites 8

Type of Provision 1 Short Courses/Full Time Learners 1 Apprenticeship frameworks* 3 Apprenticeship standards * 5 Distance Learning 8

Employer delivery due diligence score indicator

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Risk Band Score Range 1 121+ 2 101-120 3 80-100

8.1 The charge will be calculated each year based upon the due diligence and appropriate scoring matrix. For standard non apprenticeship subcontracting the management fee will be in line with the standard training provider risk assessment score card.

For apprenticeship subcontracting: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_ data/file/821581/1920_Provider_Rules_Version_1.0_FINAL.pdf

• Price is agreed by all parties during the negotiation phase taking into account all

eligible costs. Price is based on IFA maximum funding band allocated to the framework or standard (unless an employer wishes to pay additional to funding cap).

• A formal agreement must be in place to formalise delivery arrangements and responsibilities between the main provider (TEC Partnership) and the subcontractor (ATSA).

• A formal price matrix must be in place to confirm employer negotiations and breakdown of delivery and support price per partner/ subcontractor.

• Subcontractors can only be used to compliment direct delivery and if requested by an employer and agreed during the negotiation phase.

• Subcontractors may deliver full or part of the apprenticeship for frameworks and or standards depending on the relationship the main provider (TEC Partnership) has with the employer, delivery by the main provider must be substantive. (see full guidance) https://www.gov.uk/government/publications/apprenticeships- subcontracting

• Are on the ROATP (main/ supporting or employer) or (pre August 2019) the apprentice’s employer or connected company delivering less than £100k.

• The main provider (TEC Partnership) has overall responsibility of the apprenticeship, apprentices and subcontractors

• Where the employer is the delivery subcontractor they must only be paid actual costs of delivery and they must not profit from apprenticeship delivery to their own employees

8.2 For standard (non-apprenticeship) subcontracting management fee covers the following services provide

• Course set up • Enrolment input and preparation of registers/progress review planning. • Linked MIS operative to ensure courses are set up correctly and data input to

maximise funding. • Linked Quality Auditor/Teaching Coach to support development of Teaching,

Learning and Assessment. • Monthly review data – retention, achievement, success.

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• Contract/Quality review meetings. • Strategic updates in relation to funding. • Observation of Teaching, Learning and Assessments. The number of

observations will be determined through a risk assessment process prior to engagement, including but not limited to, the number of staff delivering on GIG programmes and the curriculum mix.

• Guidance and templates for input into the Self-Assessment process. • Guidance and templates for Observation of Teaching, Learning and Assessment. • Provision of CPD/Staff Development activities and Best Practice Forums.

The above contract fee charge may be reduced if access to additional services are required by the subcontractor.

For Apprenticeship delivery in line with the appropriate ESFA guidance at the time of contract start the negotiated fee will include;

• Agreed delivery model and delivery as defined by the Apprenticeship Training

Service Agreement (ATSA) and formal subcontracting contract • ILR management, compliance and processing • Enrolment input and preparation of registers/progress review planning. • Linked MIS operative to ensure courses are set up correctly and data input to

maximise funding. • Linked Quality Auditor and assessment support/Teaching Coach to support

development of Teaching, Learning and Assessment. • Monthly review data – retention, achievement, success. • Quarterly contract/Quality review meetings. • Strategic updates in relation to funding and inspection frameworks • Observation of Teaching, Learning and Assessments. The number of

observations will be determined through a risk assessment process prior to engagement, including but not limited to, the number of staff delivering on GIG programmes and the curriculum mix.

• Guidance and templates for input into the Self-Assessment process. • Guidance and templates for Observation of Teaching, Learning and Assessment. • Provision of CPD/Staff Development activities and Best Practice Forums

9. Payment Terms 9.1 TEC Partnership will pay the full value allocated by the Education Skills Funding

Agency’s ILR system per learner, less the agreed contract fee or the negotiated price as per the Apprenticeship Training Service Agreement (ATSA). This allocation is payable on actual funding generated monthly, less 20% of the full funding allocation which is with-held until all delivery has been undertaken and satisfactory paperwork has been received, or due to apprenticeship funding which is paid less the 20% by the ESFA, released on completion. The Executive Director supported by the Subcontracting Officer will reconcile funding between the 15th and 21st of each month and request the amount to invoice; all invoices received will be paid within 30 calendar days. Where all delivery has not been undertaken or the funding has

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changed, the TEC Partnership will re-claim any overpayments made to the Subcontractor.

9.2 The TEC Partnership reserves the right to reduce the final payment should the

Collaborator fail to achieve the Key Performance Indicators as detailed within the Subcontract agreement. The percentage of this reduction will be determined by the percentage of under achievement by the Collaborator and in line with agreed KPI.

9.3 Those subcontractors with a high percentage contract fee will be reviewed in

the fourth month of contracting and fees adjusted accordingly. For apprenticeship delivery funding will be reviewed within the quarterly contract reviews with subcontractor and employer.

10. Appeals

10.1 A Subcontractor, who wishes to appeal against the contract fee decision, should inform the Executive Director within ten working days of the date of the decision. The Subcontractor must set out clearly and in writing the grounds for their appeal. The appeal will be heard by a member of the Executive Management Team who was not involved in making the contract fee decision.

10.2 The Subcontractor will be invited to an appeal meeting which will be held as

soon as possible after the notice to appeal has been received.

10.3 The outcome of the appeal will be notified to the Subcontractor in writing as soon as possible after the appeal meeting.

11. Dissemination and Implementation

11.1 Dissemination

Copies of this policy will be sent electronically to all subcontracted training providers engaged with the TEC Partnership from 1st August each year, and will be published on TEC Partnership website.

11.2 Implementation

The original policy was implemented with all subcontractors from 1st August 2013. Updated policies continue to be implemented as appropriate each academic year in line with funding policy updates.

12. Review

This policy may be subject to review annually and altered in line with the Education Skills Funding

Agency guidelines

13. Publication

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This policy is published on the TEC Partnership website https://tecpartnership.com/

14. References

Apprenticeship subcontracting rules https://www.gov.uk/government/publications/apprenticeships-subcontracting

Apprenticeship funding rules https://www.gov.uk/guidance/apprenticeship-funding-rules#the-latest-rules-2018-to-2019

Skills Funding Agency (2015) Funding Rules 2015/2016. [online] Available at: https://www.gov.uk/government/publications/adult-education-budget-funding-rules-2018- to-2019 https://www.gov.uk/guidance/sfa-funding-rules#to-2018-funding-year

Association of Employment and Learning Providers (2016) Supply Chain Management – A good practice guide for the post-16 skills sector [online] Available at: http://www.aelp.org.uk/supply/details/supply-chain-management-guide/ https://www.aoc.co.uk/sites/default/files/AoC%20360%20Subcontracting%20Guide%20201 8_0.pdf

Teaching, Learning and Assessment Policy

Subcontractors Agreement and Contract

Due-Diligence Questionnaire

15. Level of SFA Funding paid and retained Academic Year 2016/17 Partner Name Partner

UKPRN Contract Start

Contract End

Type of Provision Funding Received in 16/17

Funding Paid to Partner in 16/17

Funding Retained 16/17

White Rose Beauty Academy 10007484 01/08/2016 31/07/2017 Classroom Learning AEB £50,000 £40,000 £10,000

JTJ Workplace Solutions

10029963

01/08/2016

31/07/2017 19+ Apprenticeships and Classroom Learning

£345,000

£300,000

£45,000 The Skills Network 10029308 01/08/2016 31/07/2017 Classroom Learning AEB £585,000 £497,250 £87,750

JCR4W

10039151

02/03/2017

31/07/2017

Classroom Learning 19+ AEB

£100,000

£70,000

£30,000

JCR4W 10039151 02/03/17 31/07/17 Traineeships £50,000 £35,000 £15,000 The Training Brokers 10036106 01/08/2016 31/07/2017 19+ Apprenticeships £67,000 £53,600 £13,400 Construction Skills People 10036106 01/08/2016 31/07/2017 19+ Apprenticeships £177,000 £141,600 £35,400 Pat Clarke Training 10030802 01/08/2016 31/07/2017 19+ Apprenticeships £53,000 £4,505 £7,950

Beyond 2030 Ltd

10040263

01/11/2016

31/07/2017

ESF £33,430.06

£28,415.55

£5,014.51

Bishop Burton College

10000721

01/11/2016

31/07/2017

ESF £30,360.36

£25,806.31

£4,554.05

Craven College

10001743

01/11/2016

31/07/2017

ESF £600.00

£510.00

£90.00

East Riding College

10002126

01/11/2016

31/07/2017

ESF £13,332.54

£11,332.66

£1,999.88

Hull College

10003200

01/11/2016

31/07/2017

ESF £7,075.00

£6,013.75

£1,061.25

Selby College

10005741

01/11/2016

31/07/2017

ESF £17,100.02

£14,535.02

£2,565.00

YH Training Services Ltd

10007697

01/11/2016

31/07/2017

ESF £5,150.00

£4,377.50

£772.5

York College

10007709

01/11/2016

31/07/2017

ESF £950.01

£807.51

£142.50

York Fitness and Leisure LTD

10007697

01/11/2016

31/07/2017

ESF £0.00

£0.00

£0.00

16. Level of ESFA Funding paid and retained Academic Year 2017/18

Partner Name Partner UKPRN

Contract Start

Contract End Type of Provision Funding Received in 17/18

Funding Paid to Partner in 17/18

Funding Retained 17/18

JTJ Workplace Solutions

10029963

01/08/2017

31/07/2018

19+ Apprenticeships and Classroom Learning

£1,515.69

£1,288.33

£227.36

The Skills Network 10029308 01/08/2017 31/07/2018 19+ Adults £70.38 £61.20 £9.18 The Training Brokers 10036106 01/08/2017 31/07/2018 19+ Apprenticeships £9,129.14 £6,913.46 £2,215.68 Construction Skills People 10036106 01/08/2017 31/07/2018 19+ Apprenticeships £23,482.80 £17,337.04 £6,145.76 Community Press Office 10052901 01/11/2017 31/07/2018 EFA 16-18 £5,515.37 £4,680.00 £835.37 East Coast Sport Foundation T/a Scarborough Football Scholarship

10061518

11/09/2017

31/07/2018

EFA 16-18

£26,940.00

£13,470.00

£13,470.00

Pat Clarke Training 10030802 01/08/2017 31/07/2018 19+ Apprenticeships £410.45 £356.91 £53.53

ESF

Partner Name Partner UKPRN

Contract Start

Contract End Type of Provision Funding Received in 17/18

Funding Paid to Partner in 17/18

Funding Retained 17/18

Beyond 2030 LTD 10040263 01/08/2017 31/07/2018 ESF £4,750.29 £4,037.75 £712.54 Bishop Burton College 10000721 01/08/2017 31/07/2018 ESF £46,721.16 £39,712.99 £,7008.17 East Riding College 10002126 01/08/2017 31/07/2018 ESF £27,655.46 £23,507.14 £4,148.32 Hull College 10003200 01/08/2017 31/07/2018 ESF £450.00 £382.50 £67.50 Selby College 10005741 01/08/2017 31/07/2018 ESF £23,909.73 £20,323.27 £3,586.46 YH Training Service Ltd 10007697 01/08/2017 31/07/2018 ESF £6,250.00 £5,312.50 £937.50 York College 10007709 01/08/2017 31/07/2018 ESF £1024.00 £870.40 £153.60

Apprenticeship Co Delivery subcontracting

Partner Name Partner UKPRN

Contract Start

Contract End Type of Provision Total GIFHE Funding Received for delivery and management 17/18

Funding Paid to Partner in 17/18 (contribution to delivery)

Young’s Seafood Ltd 10007732 01/12/2017 31/07/2018 19+ Apprenticeships (Levy) £77,885 £29,500.14 Interventions Consulting & Intergreen Uk Ltd

10054828

01/08/2017

31/07/2018

19+ Apprenticeships (Levy)

£31,968

£26,666.82

16. Level of ESFA Funding paid and retained Academic Year 2018/19

(To be completed by year end)

Partner Name Partner UKPRN

Contract Start

Contract End Type of Provision Funding Received in 17/18

Funding Paid to Partner in 17/18

Funding Retained 17/18

East Coast Sport Foundation T/a Scarborough Football Scholarship

10061518

EFA 16-18

Partner Name Partner UKPRN

Contract Start

Contract End Type of Provision Total GIFHE Funding Received for delivery and management 17/18

Funding Paid to Partner in 17/18 (contribution to delivery)

Interventions Consulting & Intergreen Uk Ltd

10054828

19+ Apprenticeships (Levy)

Interventions Consulting @ Karro Foods

10054828

19+ Apprenticeship (Levy)

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